Tax Benefits in Republic of Armenia

The Tax Legislation of Republic of Armenia offers tax benefits for many types of economic activities for both resident and non-resident taxpayers. Some of the most notable tax benefits include the benefits defined by the law on State Support of IT Sphere, the recent changes to the law on Profit tax, and the tax exemption [...]

By | 2017-01-30T13:26:28+04:00 June 15th, 2015|Corporate Law, Taxation, VAT|Comments Off on Tax Benefits in Republic of Armenia

A Q&A about transaction taxes in Republic of Armenia

Q: Are there any documentary taxes in Armenia? A: Armenia does not levy any documentary taxes on documents evidencing transactions.   Q: Is there Value Added Tax (or a similar tax)? If so, at what rate or rates? A: A person (legal entity, individual entrepreneur, etc. ) is considered a VAT payer if they carry out entrepreneurial [...]

By | 2017-01-30T13:26:28+04:00 May 20th, 2015|Taxation, VAT|Comments Off on A Q&A about transaction taxes in Republic of Armenia

Moment of Creation of VAT Liability

For purposes of VAT the moment of supply of goods (provision of services) is the moment when the goods were delivered or transferred to the buyers or when the services were provided to the customers. Art. 31 of the Law on VAT. The Court of Cassation held that VAT liability is created at the moment when the [...]

By | 2014-11-01T14:06:43+04:00 November 1st, 2014|Taxation, VAT|Comments Off on Moment of Creation of VAT Liability

Taxpayers’ Rights Cannot Be Restricted by Secondary Legislation

In Armenia only the legislative acts of the Parliament may restrict the rights and freedoms of individuals and legal entities, impose obligations, define penalties, impose taxes, including the rate and the order of payment. Art. 9 of the Law on Legal Acts. Legal acts of lower force, including instructions of the tax authorities, may not [...]

By | 2014-10-31T08:29:53+04:00 October 31st, 2014|Taxation, VAT|Comments Off on Taxpayers’ Rights Cannot Be Restricted by Secondary Legislation

Zero Rate VAT for Processing Services

In Armenia zero rate VAT applies, among other things, to re-exported goods and to processing, assembly, renovation, modernization and similar services performed on goods to be exported from Armenia. Article 16(7) of the Law on VAT. The Court of Cassation held that this provision does not apply to services for sorting diamonds, i.e. sorting them in accordance with [...]

By | 2014-10-29T08:48:08+04:00 October 29th, 2014|Taxation, VAT|Comments Off on Zero Rate VAT for Processing Services

Taxation of Expropriation

According to the Armenian Law on Alienation of Property for Public and State Needs, financial obligations arising from the transfer of property, in particular tax liabilities, shall be compensated by the acquirer. Furthermore, alienation of property in the interest of the public shall not cause unreasonable harm to the owner. Based on the foregoing, the Court [...]

By | 2014-10-28T08:29:52+04:00 October 28th, 2014|Taxation, VAT|Comments Off on Taxation of Expropriation

Deduction of input VAT and VAT refund

Taxpayers deduct from the VAT imposed on the taxable turnover (output VAT) the VAT which was paid to the suppliers for acquired  goods and services (input VAT). Art. 23 of the Law on VAT. The deduction is allowed if: The goods (services) were acquired for manufacturing or other commercial purposes, The amount of VAT is [...]

By | 2017-01-30T13:26:29+04:00 October 27th, 2014|VAT|Comments Off on Deduction of input VAT and VAT refund

VAT on Gifts, Discounts and Deals

Gratuitous or partially compensated transactions in Armenia are subject to full VAT taxation based on the real (market) value of the goods and services provided. Article 6(3) of the Law on VAT. If the goods (services) are sold at a price which is substantially lower than the normal price, the transaction shall be treated as a partially compensated (or [...]

By | 2017-01-30T13:26:29+04:00 October 23rd, 2014|VAT|Comments Off on VAT on Gifts, Discounts and Deals