VAT on commission invoices in Armenia: FAQs

Updated 1 month ago | 5 min read time
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In line with the Armenian VAT legislation, we’re changing the way VAT is applied to the commission invoices we send to accommodation partners. Check out the most commonly asked questions on this subject below.


 

What’s changing and how it affects you

  • From 1 January 2024, in accordance with Armenian VAT legislation, we’ll start applying VAT to our commission invoices. This will affect partners who haven’t submitted their VAT Identification Number (‘VAT ID’), Tax Identification Number (‘Tax ID’) and a copy of the tax registration certificate.

    This change doesn’t impact any VAT charged to guests on the price of their stay at a property – it only concerns the commission invoices we send to accommodation partners.

  • As an accommodation partner in Armenia, one of these scenarios will apply to you and your property:

    • If you provide us with your VAT ID, Tax ID and a copy of your tax registration certificate, we won’t apply VAT to the commission invoices we send you. Instead, you’ll remain responsible for reporting any VAT you might owe to the Armenian tax authorities yourself.

     If you don’t provide us with your VAT ID, Tax ID and a copy of your tax registration certificate, we’ll apply 20% VAT to commission invoices that we send you from 1 January 2024. We’ll pay this VAT to the Armenian tax authorities in full.

What you need to do

  • Please provide us with the requested information by 30 December 2023. Here’s how:

    1. Log in to the extranet.
    2. Click on Finance or on Finance settings.
    3. Click on VAT details.
    4. Click Edit details.
    5. Select Yes / No to confirm if you’re registered as a VAT payer in Armenia.
    6. Enter your VAT ID, Tax ID and upload a copy of your tax registration certificate.
    7. Click on Save.

Understanding VAT and Tax / VAT ID numbers

  • A Tax ID is a unique number issued by the State Revenue Committee of The Republic of Armenia to companies registered in Armenia. If you’re registered as a VAT payer in Armenia, you should have both a Tax ID and a VAT ID number.

    The format of the Tax ID is “XXXXXXXX” (e.g. 12345678) and the format of the VAT ID is “XXXXXXXX/1” (e.g. 12345678/1).

  • Having a Tax ID number doesn’t mean that you’re automatically registered as a VAT payer in Armenia. 

    To understand if you’re registered as a VAT payer in Armenia, we recommend checking your tax registration certificate or getting in touch with a tax advisor.

  • If you don’t provide us with this information, we’ll apply 20% VAT to commission invoices that we send you from 1 January 2024. You’ll need to pay both the commission amount and the VAT amount on the invoice to us. We’ll pay the VAT to the Armenian tax authorities in full.

  • We’ll start applying VAT on the commission invoices starting from 1 January 2024 to accommodation partners in Armenia who haven’t provided a VAT ID, Tax ID and a copy of the tax registration certificate. Those invoices will cover reservations where guests checked out in December 2023.

  • If you received a commission invoice that includes VAT, please double-check that you submitted all the information requested on the extranet following the steps from section 2

    In case you provided us with all the information, we’re sorry for any inconvenience and we’ll be happy to correct this by crediting the incorrect commission invoice and issuing a correct invoice without VAT. To ask us to do this, please dispute the original invoice within three months of the check-out date for the relevant reservation.

  • Yes. If you’re not registered as a VAT payer in Armenia, then the VAT applied to the commission invoices we send you is an additional cost for you.

  • Once you register as a VAT payer in Armenia and obtain a VAT ID, please provide us with it by following the steps from section 2 of this article. Once you provide us with your VAT ID, Tax ID and a copy of your tax registration certificate, we’ll stop applying VAT to the commission invoices we send you as soon as possible.

Other frequently asked questions

  • You’ll find our VAT number on the commission invoices we send you.

  • Please visit the Armenian Tax Authority website to find more information or access the amended regulations.

  • Yes. We’ll apply VAT to our commission invoices where required in accordance with the Armenian VAT legislation, and we’ll pay that VAT to the Armenian tax authorities in full.

    Keep in mind that Booking.com is a Dutch company and our VAT registration in Armenia is separate from our obligations to pay other taxes in the Netherlands.

  • If you have further questions about your tax obligations, we recommend that you contact your tax advisor or accountant. Unfortunately, we can’t provide advice about your or your property’s specific tax obligations.

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