In order to legally engage in certain kinds of activities, individuals (including Individual Entrepreneurs (IE)) and legal entities have to obtain a license that gives them a permission to do so. License fees replace VAT and Income tax for individuals (including IE), and VAT and Profit tax for legal entities. The rates of license fees depend on the location where the services are being provided.

A license is required for the following types of activities:

• services provided at the request of clients
  • production and repair of footwear and leather haberdashery, production of footwear and haberdashery accessories,
  • clothing production and repair,
  • production and repair of hats,
  • production and repair of carpets and carpet products,
  • production of wood products, furniture and home furnishing repairs,
  • production and repair of imitation jewelry,
  • repair and software maintenance of home appliances (computers, washing machines, air conditioners, etc.),
  • bicycle and wheelchair production, repair of personal and household goods,
  • production of ornate, household, and other ceramic and porcelain items,
  • tinsmithing,
• watches and other timer equipment repair, repair of musical instruments,
• specialized knowledge acquisition courses,
• language-learning courses,
• preparatory courses for admission to higher education institutions,
• dancing and singing training activities,
• activities related to performing arts, supporting activities in performing arts,
• creative activities,
• event organizing activities,
• educational activities and extracurricular sports and physical education,
• private household services,
• smithy,
• services of tourist housing.

Aside from the aforementioned types of activities requiring a permit, the individuals and legal entities engaging in following types of activities are considered operating under the law on License Fees, if they meet the requirements of the law. These activities are:

• activities carried out in catering industry,
• passenger transportation with the use of automobiles,
• hairdressing services,
• car service stations (points),
• parking lot services,
• organizing billiard games,
• organizing table tennis games,
• making sales through vending machines,
• coin-operated gaming machine operating activities,
• dental practice,
• real estate purchase or lease brokers,
• sale of precious metals, stones, or items made from precious metals at trade areas if the annual turnover of the taxpayer is less than 115 million AMD.