15:24,
YEREVAN, NOVEMBER 11, ARMENPRESS. According to proposed legislative amendments, non-resident companies providing electronic services in Armenia must pay a value added tax starting from January 1, 2022, a senior tax official said at a press conference in Armenpress.
Lusine Ayvazyan, head of the department of management of information systems changes and impact assessment at the State Revenue Committee, said that works are already underway with the major international companies which provide electronic services in Armenia.
“We have held discussions with the representatives of Google, Facebook, Booking, Amazon, Netflix and other companies. I would like to inform that there hasn’t been any objection by any of these companies regarding paying a tax. All have expressed readiness to be registered. During the discussions a question was raised connected with making the system simple and more convenient. I also want to inform that a question was raised to set a reporting period for VAT calculation every three months”, Lusine Ayvazyan said.
These new amendments would contribute to the increase of the state budget funds, however, it’s still unclear how much money will enter the budget within a year.
Head of the department N1 of tax and mandatory fees methodology Asaneth Aloyan said that no regulations are envisaged for electronic trade by this draft.
The proposed legislative amendments also have a component for those resident companies in Armenia which provide electronic services.
She informed that there will be better taxation regulations for some electronic services. According to the current regulations, these services are taxed at a 20% VAT rate, but the expected changes propose applying 0% VAT rate. “For instance, I can state that a company based in Armenia, which provides online educational service abroad, in other words, the one who gets its service is non-resident, it may not be taxed”, she added.
As for the physical entities who provide electronic services in Armenia, the SRC representative said that there is no tax obligation for them.
Editing and Translating by Aneta Harutyunyan