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 contain such regulations. For example, the sale of medical equipment is exempt from VAT. Art. 15 of the Law on VAT. At the same time an instruction of the tax inspectorate provides that the sale of medical equipment which can be used for non-medical purposes shall be exempted from VAT only if the buyer is a provider of medical services. The Court of Cassation held that this additional requirement, namely that the medical equipment shall be sold to providers for medical services, shall not be applied by virtue of the Law on Legal Acts.

 

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

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