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 color, size and quality and evaluating them without changing their weight or price.