VAT — how it is worked out

This guide explains where VAT appears in Invoq, how it is worked out, and how it is rounded.

Where	What you see
On every line of your invoice	The line's value, its VAT and its total
On received documents	The supplier's VAT, as the tax service holds it
In the lists of invoices	Three amounts — «Before VAT», «VAT», «With VAT» — and a totals row
«Finance» → «VAT»	The month's output and input VAT, the difference between them, and the VAT calculator
«Stock»	Purchase and selling prices, with VAT and before VAT
«Analysis»	Every amount, with VAT and before VAT

Important. Invoq does not prepare your VAT return and does not say how much VAT is due. The month's VAT page estimates it from the invoices Invoq holds. Your accountant files the return. The references to the Tax Code in this guide are the same as in the platform, and they are not legal advice.

Contents

• The basic rules
• VAT on your invoice
• VAT on received documents
• In the lists: three amounts
• The month's VAT
• The VAT calculator
• VAT in the prices of goods
• VAT in the analysis and in profit
• Rounding
• Frequently asked questions

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The basic rules

Rule	Source
VAT is 20% of the taxable base	Tax Code, art. 63(1)
No VAT is charged on supplies exempt from VAT	Tax Code, art. 64
Supplies taxed at the zero rate (0%), exports for example	Tax Code, art. 65
In some cases the VAT in an amount that includes it is found with the 16.67% settlement rate	Tax Code, art. 63(2)
The VAT reporting period is the month	Tax Code, art. 69(1)
A supplier's VAT is offset once you confirm its tax invoice with an electronic signature	Tax Code, arts. 68(1), 71(1)
The VAT on some purchases is not offset	Tax Code, art. 72

Whether your company is a VAT payer Invoq takes from the tax service's registry. If the registry says the company is not a VAT payer, the month's VAT page says so.

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VAT on your invoice

Two kinds of document

The tax service's e-invoicing system has two families of documents, and VAT is written differently in each:

Family	In Invoq	VAT
Tax invoice	«Goods, with VAT», «Services, with VAT», «Goods, with excise», «Leasing», «VAT refund»	Every line states its VAT rate, and the VAT is worked out. For VAT payers
Accounting document (settlement document)	«Goods», «Services», «Export, EAEU»	Has no VAT field. The line states the kind of transaction, which is its only answer about VAT
Waybill	«Transport», «Traceable, EAEU»	The goods are only moved, not sold: there is no VAT

When you create a new document, Invoq asks what you are supplying: «Goods» or «Services», then «They are sold» or «They are sold with VAT — a tax invoice». The choice decides the document's family.

A line's value

line value = quantity × unit price × (1 − discount %)

• The unit price is written before VAT.
• The value is rounded to the luma (two decimal places), half up.
• The discount is a percentage from 0.0001 to 99.9999, with at most four decimal places. «No discount» means the discount field is empty. The tax service does not accept a discount of 0.

VAT on a tax invoice line

On every line of a tax invoice you choose the «VAT» field:

Choice	The line's VAT
20%	The line's value × 20%, to the luma
Zero-rated (0%)	0
Exempt	0
Other	The amount you write in the «VAT amount» field. It must be more than zero, with at most two decimal places. With «Other», the document's «Additional details» field must be filled in too: the tax service requires it

On the lines of «Leasing» and «VAT refund» documents the choice is one of two: 20% or No VAT.

line VAT   = line value × 20 ÷ 100   (to the luma, half up)
line total = line value + line VAT

VAT is worked out for each line separately, as on the tax service's form. The document's VAT is the sum of its lines' VAT.

Examples

These figures come from the same Invoq code that works out your invoices:

Line	Value	VAT	Total
3 × 1 234.56, 20%	3 703.68	740.74	4 444.42
10 × 1 000, discount 7.5%, 20%	9 250.00	1 850.00	11 100.00
2.5 × 333.33, 20%	833.33	166.67	1 000.00
7 × 14.99, 20%	104.93	20.99	125.92
5 × 1 000, zero-rated	5 000.00	0.00	5 000.00
1 × 1 000, «Other», VAT amount 150	1 000.00	150.00	1 150.00

On the first line, for example: 3 × 1 234.56 = 3 703.68, and 3 703.68 × 20% = 740.736, rounded to 740.74. On the third: 2.5 × 333.33 = 833.325 → 833.33, and 833.33 × 20% = 166.666 → 166.67.

The kind of transaction on an accounting document line

An accounting document has no VAT field. Every line chooses its kind of transaction:

Kind of transaction	When
Special tax system	The company is not a VAT payer (turnover tax, for example) — the first choice on a new line
VAT exempt	The supply is exempt from VAT
VAT zero-rated	A supply taxed at the zero rate
Export	An export
Export EAEU — air	An export within the EAEU by air
Excluded from VAT	The supply is not subject to VAT

The «Other VAT» kind is allowed only on a tax invoice, so an accounting document does not offer it. An accounting document line's VAT is always 0, and its total equals its value.

Where the kind comes from. If the buyer's card states its usual kind of transaction, it fills every line you have not changed by hand. When you choose a good, the kind is taken from the good's details («Stock» → the good → «Your details» → «VAT») or from the lines before it. On a tax invoice the buyer's kind becomes the line's VAT, when the tax invoice has such a choice (zero-rated, exempt, other).

Excise

A line of an excise tax invoice states the excise included in its value, which cannot be more than the line's value. The VAT is worked out on the line's whole value, excise included.

Sales in a foreign currency

The accounting documents for services and for goods, their tax invoices, and the EAEU export accounting document can be priced in a foreign currency. The excise invoice, leasing, the VAT refund invoice and the waybills are in drams only.

• A line's price in drams = the price in the currency × the Central Bank of Armenia's rate, to four decimal places. Only the drams are sent to the tax service. The VAT is worked out on the value in drams, by the rule above.
• A draft is kept at the CBA's latest published rate. This is an estimate, and the page says so.
• When it is issued, the price is worked out again at the rate of the day the law sets (Tax Code, art. 16): usually the day it is issued (Yerevan time), and for an EAEU export the day the goods cross the border.
• If the CBA has not published that day's rate yet, you choose: wait, or issue at the latest published rate — its date is stated. For a past day with no rate (a Saturday, for example), the rate in force that day is taken.
• After what you write in the «Additional information» field, Invoq adds by default how much is due in the currency and which day's CBA rate the drams were worked out at. You can take that note out. The EAEU export form has no such field.
• On a sale in a foreign currency a line with «Other» VAT is not allowed, because its VAT is stated in drams.

A correcting (reducing) invoice

A reducing correcting invoice (a return, a price reduction) is worked out by the same rules. In the month's VAT, in the analysis and in the lists' totals, its VAT is taken off.

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VAT on received documents

Invoq reads a supplier's document from the tax service as the tax service holds it. Invoq does not work out the VAT again: it shows what the supplier wrote.

• A newly received document's lines are read separately, a little later. Until then a tax invoice's VAT is not known, and the document's page says: «This invoice's lines are still being read: its VAT is not known yet.»
• A received accounting document has no VAT.
• If you have corrected a receipt (less arrived, the unit is wrong), the VAT does not change: input VAT is always the supplier's invoice's. A correction changes only the stock and the cost.

Confirming a supplier's tax invoice at the tax service

On a received document's page, in the «Your answer» section, you can approve or reject it at the tax service. The approval is signed on your phone. Under the Tax Code a supplier's VAT is offset only once its tax invoice is approved.

This is not the same as confirming the goods in the stock («Confirm the goods»). Confirming the goods is Invoq's own record, which decides when the goods appear in stock. It has no tax consequence.

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In the lists: three amounts

In the lists of invoices («Issued», «Received», «Sign queue», «Reports») the amount is shown in three columns: «Before VAT», «VAT», «With VAT». Under the list is a totals row, over every invoice found.

• A received tax invoice whose lines are not read yet shows «—» in the «With VAT» column, not its amount before VAT. The totals count it before VAT and say: «The VAT of {N} invoices is not known yet: they are counted before VAT.»
• On a phone an invoice's card shows the total with VAT, and the total before VAT under it.

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The month's VAT

The «Finance» → «VAT» page works out one month's VAT from the invoices Invoq holds. Every role sees it except the courier. Only administrators (with the right to manage finance) may add, change and remove lines by hand.

• The page opens on the previous month, whose return is the one due now.
• The «Previous month» and «Next month» buttons change the month.
• An invoice belongs to a month by its supply date, Yerevan time.

What is counted

Line	What is counted
Your tax invoices	The VAT on the lines of your tax invoices supplied in the month, when the invoice is «Issued», «Issued with errors», «Approved» or «Awaiting invalidation». A reducing correcting invoice's VAT is taken off
VAT as a foreign landlord's tax agent	See Rent paid to a foreign company
Lines added by hand, on the owed side	VAT on cash-register sales, VAT on a non-resident's services, «Other, owed»
= Output VAT
Your suppliers' tax invoices	The VAT on your suppliers' tax invoices supplied in the month and in force at the tax service — approved or not
of which not confirmed at the tax service yet	The part of that VAT whose invoices you have not approved yet. Shown for information, and not taken off
The same VAT, offset	The tax agent's VAT, on the input side
Lines added by hand, on the offset side	VAT on imports, VAT on a non-resident's services, the excess carried from last month, «Other, offset»
= Input VAT
Difference: output less input	If the input is more, it says «Difference: input is more»

What is not counted (shown under «Not counted»)

• Your invoices held on Invoq and not sent to the tax service yet: «{N} invoices, {VAT} of VAT, are held on Invoq and not sent to the tax service yet.» Such an invoice is not issued until it is sent.
• Received invoices whose VAT is not read yet: «The VAT of {N} received invoices is not read yet.»

Lines added by hand

What the invoices do not say, an administrator adds by hand («What no invoice says» → «Add a line»):

Kind	Side	Example
VAT on cash-register sales	Output	Cash sales for which no invoice was issued
VAT on imports	Input	VAT paid at customs, or reckoned yourself on goods from the EAEU
VAT on a non-resident's services	Both sides	The VAT on a non-resident's service, which you reckon as its tax agent
Excess carried from last month	Input	An excess carried over from the month before
Other, owed	Output	Any other adjustment, with a note
Other, offset	Input	Any other adjustment, with a note

• The amount is more than zero, with at most two decimal places. Only the «Other» kinds may be less than zero.
• For the «Other» kinds a note is required (300 characters at most).
• Every addition, change and removal is written in the organisation's activity log (without the amount).

Rent paid to a foreign company

If a VAT-paying company pays rent to a foreign company without a permanent establishment in Armenia, for property in Armenia, it reckons that VAT as a tax agent (Tax Code, art. 70(2), art. 71(1)(4)). In Invoq this VAT is worked out on the «Expenses» page when the rent payment is marked paid. On the month's VAT page it is added on both sides, so it does not change the difference. The month is decided by the payment's due date. There is nothing to enter by hand.

What the page does not do

The page says what it does not see:

• It does not take off VAT the law does not let you offset (Tax Code, art. 72). Your accountant takes that off.
• It counts all your suppliers' tax invoices, unapproved ones too. By law the VAT on an unapproved invoice is not offset: the page shows their share but does not take it off.
• Every approved invoice is counted in its month of supply. If an invoice was approved after the return's deadline, the law offsets it in the month it was approved (Tax Code, art. 71(1)(1)(b)), but Invoq does not keep the approval date, so it does not apply that rule.
• It does not split the VAT on things used for both taxed and untaxed supplies (Tax Code, art. 73).
• It does not include payroll and expenses: they are not part of the VAT return.

An example

September, a VAT-paying company:

	VAT
Your tax invoices (43): 1 260 000, less one reducing correcting invoice's 24 000	1 236 000
VAT on cash-register sales (by hand)	85 000
Output VAT	1 321 000
Your suppliers' tax invoices (30)	910 000
of which not confirmed at the tax service yet (4)	60 000 (for information)
VAT on imports (by hand)	120 000
Input VAT	1 030 000
Difference: output less input	291 000

If the 4 unapproved invoices are not approved by the return's deadline, by law their 60 000 drams are not offset this month (they are offset in the month they are approved). The difference would then be 351 000.

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The VAT calculator

The «Calculator» tab of the «VAT» page has two modes:

• «From amounts» works out the VAT on any amount. Nothing is kept, and no invoice is read. You can add several amounts, and the calculator gives their total.
• «For a period» works out the VAT of the days you choose from your invoices: see below.

Way	What you enter	How it is worked out
Before VAT: add 20%	An amount before VAT	VAT = amount × 20%. Total = amount + VAT. As on a tax invoice line (art. 63(1))
Includes VAT: 20 ÷ 120 of it	An amount with VAT	VAT = amount × 20 ÷ 120. Before VAT = amount − VAT (art. 63(1))
Includes VAT: 16.67%	An amount with VAT	VAT = amount × 16.67%. Before VAT = amount − VAT. The settlement rate (art. 63(2))
Zero rate, 0%	An amount	VAT = 0 (art. 65)
Exempt	An amount	VAT = 0 (art. 64)

When the 16.67% applies. The settlement rate applies when:

• the buyer was given only a cash-register receipt,
• the VAT is not shown on a line of its own,
• no settlement document was issued,
• a business that should have been a VAT payer did not treat itself as one.

16.67% is not the same as 20 ÷ 120. On 120 000 drams the first gives 20 004, the second 20 000.

Examples

Examples of the calculator, checked by its tests:

Amount	Way	Before VAT	VAT	With VAT
100 000	Before VAT: add 20%	100 000.00	20 000.00	120 000.00
83.33	Before VAT: add 20%	83.33	16.67	100.00
120 000	Includes VAT: 20 ÷ 120 of it	100 000.00	20 000.00	120 000.00
100	Includes VAT: 20 ÷ 120 of it	83.33	16.67	100.00
120 000	Includes VAT: 16.67%	99 996.00	20 004.00	120 000.00
1 000	Includes VAT: 16.67%	833.30	166.70	1 000.00
50 000	Zero rate, 0%	50 000.00	0.00	50 000.00
−1 000	Before VAT: add 20%	−1 000.00	−200.00	−1 200.00

• Each amount's VAT is rounded to the luma, half away from zero. A negative amount (a reduction) mirrors the positive one.
• An amount entered with VAT stays the total, and the part before VAT is what is left.
• The total is the sum of the lines, column by column, as on an invoice.
• The amount is entered in drams, to the luma at most (for example 120000 or 120000.50). Spaces between the thousands are allowed. An amount with more than two decimal places is refused, not rounded.
• The amounts you entered stay when you go to the «Month» tab and come back.

For a period

You choose the «Start date» and the «End date», each on its own calendar, or one of the quick buttons: «This month», «Last month», «This quarter», «This year». The page works out the VAT of those days as it does the month's: output, input, the difference, the unconfirmed share apart, and held and unread invoices under «Not counted».

• A year at most. The end can be no later than the day before the start's date a year on (from 2026-01-01, up to 2026-12-31). Later days cannot be chosen. If you choose a start from which the end is more than a year away, the end moves to the last allowed day, and the page says so.
• Invoices are counted by their supply date, both ends included.
• Lines typed by hand (cash register, imports, tax agent and so on) belong to a month. They are counted only for the months that fall wholly inside the period. The lines of a month only partly covered are not counted, and «Not counted» names those months and how many lines. Each counted line shows its month beside it.

Example. From 15 September to 31 October: September is covered only in part, so the cash-register VAT typed for September is not counted, while October's import VAT is. If you choose from 1 September, September's line is counted too.

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VAT in the prices of goods

On the «Stock» page a good's «Prices» section shows two prices: with VAT and before VAT.

The purchase price

It is taken from the good's latest received invoice (whose receipt counts), for one base unit:

purchase price with VAT   = the line's total (with VAT) ÷ quantity
purchase price before VAT = the line's value (before VAT) ÷ quantity

For example: 180 drams and 20% VAT → 216 with VAT, 180 before VAT. If the supplier charges no VAT, the two prices are the same.

The selling price

The selling price is chosen in one of three ways («How it sells»):

Way	How it is worked out
Fixed price	You write the price before VAT. The price with VAT = price × 1.2, if the good's VAT is not set. If the price was imported from a product list with VAT, exactly that price is shown (700 stays 700)
Own markup	Price with VAT = the purchase price with VAT × (1 + markup %). Before VAT = price with VAT ÷ 1.2 (if the good's VAT is not set; otherwise the two prices are the same)
The company's markup	The same, with the company's markup («Settings → Warehouses» → «Company markup»)

The good's VAT. In the good's «Your details» section, the «VAT» field decides the selling price's VAT. If it is «Not set», the standard 20% applies. Any other choice (exempt, 0%, export, special tax system) means the selling price has no VAT, and the price with VAT equals the price before VAT.

Example. Purchase price 216 with VAT (180 before VAT), markup 25%: the selling price with VAT is 216 × 1.25 = 270, and before VAT 270 ÷ 1.2 = 225.

An invoice line always carries the price before VAT.

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VAT in the analysis and in profit

• On the «Analysis» page every amount is shown with VAT and before VAT. In the cost with VAT, goods bought cost what was paid for them, VAT included. The details are in the Analysis guide.
• On the «Profit» tab, a VAT payer's received services and expenses on invoices count before VAT, because their VAT is offset. For a company that does not pay VAT, the VAT is a cost and counts.
• The month's VAT is shown beside the profit, but it is not an expense and is not taken off the profit.

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Rounding

What	Rule
A line's value	To the luma, half up
A line's VAT at 20%	The line's value × 20%, to the luma. Since the value is already in luma, × 0.2 never lands exactly on a half, and the rounding rule makes no difference
A document's VAT	The sum of its lines' VAT
A foreign-currency price in drams	Four decimal places
The calculator	Each amount to the luma, half away from zero; the total is the sum of the lines
Lines added by hand to the month's VAT	Two decimal places at most
On screen	Amounts are shown with at most two decimal places

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Frequently asked questions

Why does the difference on the month's VAT page not match my return? The page counts all your suppliers' tax invoices, unapproved ones too, and does not take off VAT that cannot be offset. Cash-register sales and imports appear only if you have added them by hand. Invoices held on Invoq and not sent yet are not counted.

Why does a received invoice show «—» in the «With VAT» column? Its lines have not been read from the tax service yet, and its VAT is not known. This happens with newly received invoices and passes by itself.

I corrected a received line's quantity. Why did the input VAT not change? Input VAT is the supplier's invoice's, and Invoq does not change it. If the supplier must reduce the VAT, it must issue a correcting invoice.

Why does the VAT on my 20% line differ by 1 luma from another program's? Invoq works out VAT for each line separately, as the tax service's form does. Some programs work it out on the whole document's amount, and the rounding can differ.

Does Invoq file the VAT return with the tax service? No. Your accountant files the return.