Text of the Official Translation
Content
LAW
OF THE REPUBLIC OF ARMENIA
Adopted on 4 October 2016
TAX CODE OF THE REPUBLIC OF ARMENIA
PART 1
GENERAL PART
SECTION 1
CONCEPTS AND TAX SYSTEM
CHAPTER 1
GENERAL PROVISIONS
Article 1. Subject matter of Tax Code
1. The Tax Code (hereinafter referred to as “the Code”) regulates the relations (hereinafter referred to as “tax relations”) related to the taxes applied in the Republic of Armenia (hereinafter referred to as “taxes”) and fees provided for by the Code (hereinafter referred to as “fees”), prescribes the principles of the tax system of the Republic of Armenia, the concepts of tax and fee, the types thereof, the scope of taxpayers, tax rates, the procedure and terms of tax calculation, payment, and, in cases prescribed by the Code, levying tax liabilities, as well as defines the principles of tax benefits.
2. The scope of payers of fees, payment rates, procedure and terms of calculation, payment and collection of fees, as well as benefits related thereto shall be prescribed by the Code or the laws of the Republic of Armenia.
3. Tax relations are the relations related to the record-registration and servicing of taxpayers, defining, calculation and payment of taxes and fees, record-keeping of tax liabilities, and, in cases prescribed by the Code, levying, compensation of taxes and fees, defining tax benefits, laying down the rights and obligations of taxpayers, tax and authorised bodies, exercise of tax control, application of sanctions for violating the provisions of the Code and laws of the Republic of Armenia on fees, ensuring fulfilment of tax liabilities, as well as settlement of tax disputes.
4. The types of customs fees, the scope of payers, rates, the procedure and terms of calculation and payment, as well as the benefits shall be prescribed by the customs legislation of the Republic of Armenia, unless otherwise provided by the Code.
Article 2. Regulation of tax relations
1. In the Republic of Armenia tax relations shall be regulated by the Constitution of the Republic of Armenia, the international treaties ratified by the Republic of Armenia, the Code, the laws of the Republic of Armenia on fees, secondary legal acts adopted based thereon for ensuring the implementation thereof, as well as legal acts specified by points 1-6 of part 3 of this Article (hereinafter referred to as “legal acts regulating the tax relations”).
2. The tax relations shall be regulated by the laws of the Republic of Armenia on fees and secondary legal acts prescribed by part 1 of this Article only in cases and within the scopes prescribed by the Code.
3. Tax relations shall not be regulated by the legal acts other than those prescribed by part 1 of this Article, except for:
(1) The Code of the Republic of Armenia on Administrative Offences;
(2) Law of the Republic of Armenia “On fundamentals of administration and administrative proceedings”;
(3) Criminal Code and Criminal Procedure Code of the Republic of Armenia;
(4) Law of the Republic of Armenia “On bankruptcy”;
(5) Laws of the Republic of Armenia “On tax service” and “On operational intelligence activity”;
(6) Law of the Republic of Armenia “On inspection bodies”.
4. If the provisions of legal acts, which regulate tax relations and have equal legal power have contradictions, ambiguities or misinterpretations, they shall be interpreted and applied in favour of a taxpayer.
5. The laws of the Republic of Armenia, which provide for a new type of tax or fee in the Code and increase in the rate of tax or fee established in the Code, or such provisions of the laws of the Republic of Armenia shall enter into force from the beginning of the tax year proceeding the tax year, in which is the day of adopting such laws, but not earlier than from the beginning of the seventh month following the month, in which is the day of the official promulgation of those laws.
6. The laws of the Republic of Armenia providing for a tax benefit or such provisions of the laws of the Republic of Armenia shall enter into force from the beginning of the tax year proceeding the tax year in which is the day of adoption of these laws, unless other terms for the entry of those laws into force is prescribed.
(Article 2 amended by HO-61-N of 3 June 2019)
Article 3. Principles of the tax system of the Republic of Armenia
1. The unified tax system operating in the Republic of Armenia is based on the following principles:
(1) simplicity and certainty — the legal acts regulating the tax relations shall be clear, precise for taxpayers and tax authority and shall not have contradictions and uncertainties;
(2) consolidation — the legal acts regulating the tax relations shall be as consolidated as possible and the regulation of tax relations by separate legal acts shall be avoided;
(3) equality — the legal acts regulating the tax relations shall be equally applied to all taxpayers;
(4) non-discrimination — the application of taxes and fees and tax administration shall not be of discriminatory nature based on social, political, religious, ethnic, ideological, as well as other factors prescribed by the Constitution of the Republic of Armenia;
(5) bindingness — all taxpayers shall be obliged to calculate and pay taxes and make fees in the cases, according to the procedure and in the amount prescribed by the Code and laws of the Republic of Armenian on fees;
(6) transparency and accountability — the tax administration shall be transparent and public;
(7) self-assessment and tax compliance — the taxpayers shall independently calculate and pay taxes and make fees, as prescribed by the Code and laws of the Republic of Armenian on fees;
(8) balance of tax administration — no taxpayer shall be obliged:
a. to pay taxes and make fees, which are not prescribed by the Code and laws of the Republic of Armenian on fees;
b. to pay the taxes and make the fees prescribed by the Code and laws of the Republic of Armenia on fees in violation of the requirements of the Code or laws of the Republic of Armenia on fees;
c. to pay the taxes and make the fees prescribed by the Code and laws of the Republic of Armenia on fees as long as the terms for their payment prescribed by the Code or laws of the Republic of Armenia on fees have expired;
(9) inevitability of liability — the taxpayers shall inevitably be held liable for violating the requirements of the Code or laws of the Republic of Armenia on fees;
(10) proportionality of liability — the liability provided for violating the requirements of the Code or laws of the Republic of Armenia on fees shall be proportional to the gravity of the offence;
(11) pluralism and publicity — the amendments and/or supplements to the Code or laws of the Republic of Armenia on fees shall be made by previously considering them with the representatives of specialist non-governmental organisations, business sector and other state administration bodies concerned;
(12) modernity — the tax system shall be based on the modern systems (including electronic) and approaches of management;
(13) competitiveness — the tax system shall be competitive in terms of attracting investments and forming favourable business environment;
(14) efficiency — the tax system shall enable the record-keeping at the taxpayers and the tax control by tax authority to be carried out using as little resources as possible.
(Article 3 amended by HO-266-N of 21 December 2017, HO-261-N of 23 March 2018)
CHAPTER 2
CONCEPTS
Article 4. Main concepts used in the Code
1. Within the meaning of applying the legal acts regulating the tax relations, the concepts mentioned below shall have the following meaning:
(1) tax — mandatory and non-repayable amount which is paid by taxpayers to the state and/or community budgets of the Republic of Armenia in the manner, amount and within the terms prescribed by the Code for the purpose of satisfying state and/or public needs;
(2) fee — a state or local payment provided for by the Code;
(3) fine — a sanction prescribed by the Code for the failure to pay taxes or make fees within the terms prescribed by the Code or laws of the Republic of Armenia on fees or for their late payment;
(4) penalty — a sanction prescribed for the failure to fulfil or for fulfilling with violations the requirements prescribed by the Code or laws of the Republic of Armenia on fees;
(5) arrear — amount of tax or fees prescribed by the Code or laws of the Republic of Armenia on fees, which have not been paid or have remained outstanding by the deadline for payment;
(6) advance payment of a tax or a fee — payment of a tax or a fee calculated and made as prescribed by the Code or laws of the Republic of Armenia on fees for a certain period before the end of the reporting period;
(7) debit amount — tax amount refundable from the State Budget, reflected in the unified calculation report of the VAT and excise tax generated as a result of an offset (reduction) made as prescribed by the Code, or positive difference of tax amounts refundable from the State Budget incorporated in the verified unified calculation report of the VAT and excise tax submitted for the reporting period and in the previous unified calculation report of the VAT and excise tax submitted for the same reporting period, or VAT and excise tax amounts refundable from the State Budget imposed by the inspection or other administrative act drawn up by the tax authority as prescribed by the Code;
(8) single account — deposit sub-account of state extra-budgetary funds run by the Treasury for the purpose of discharging tax liabilities of taxpayers in cases prescribed by the Code, except for tax liabilities imposed by the inspection or other administrative act drawn up by the tax authority as prescribed by the Code;
(8.1) single account for administrative acts — deposit sub-account for state extra-budgetary funds run by the Treasury for satisfying tax liabilities imposed by the inspection or other administrative act drawn up by the tax authority as prescribed by the Code;
(9) treasury — central treasury of the state body exercising state regulation of the financial sector as authorised by the Government;
(10) amount of single account — amount by which the tax liabilities of a taxpayer may be satisfied as prescribed by the Code, except for tax liabilities imposed by the inspection or other administrative act drawn up by the tax authority as prescribed by the Code. This amount may be generated from:
a. payment made to the single account;
b. amounts to be credited to the single account as a result of submission of tax calculation reports (including verified ones);
c. crediting of amounts from the single account for administrative acts to the single account;
d. reduction of liability as a result of enforcement of a court judgment or the decision adopted by the appeals commission with regard to the appeal brought against the action (inaction) of the tax officer in relation to the liabilities imposed by the tax authority based on tax calculation reports submitted by the taxpayer or increase in the value added tax or excise tax refundable amounts subject to crediting to the single account;
e. value added tax refundable amounts or excise tax refundable amounts subject to crediting to the single account that have been substantiated as a result of an examination of substantiation of amounts to be credited to the single account;
(10.1) amount of single account for administrative acts — amount whereby liabilities imposed by the inspection or other administrative act drawn up by the tax authority as prescribed by the Code may be satisfied as prescribed by the Code. This amount may be generated from:
a. payment made to the single account for administrative acts;
b. crediting of amounts from the single account to the single account for administrative acts;
c. reduction of liability as a result of enforcement of a court judgment or decision adopted by the appeals commission with regard to the appeal of the administrative act adopted by the tax authority or increase in the value added tax or excise tax refundable amounts subject to crediting to the single account for administrative acts;
d. reduction of liability as a result of an inspection or examination or increase in the value added tax or excise tax refundable amounts to be credited to the single account for administrative acts;
(11) taxpayer — an organisation or a natural person (including an individual entrepreneur, notary), who has or may have an obligation to pay a tax or make a payment in the cases prescribed by the Code or laws of the Republic of Armenia on fees;
(12) tax authority — the State Revenue Committee;
(13) tax administration — entirety of actions carried out by the authorised body pursuant to the Code and other legal acts for the universal and correct application of the legal acts regulating tax relations;
(14) authorised body — state administration or local self-government body implementing administration or exercising control in cases and within the scope prescribed by the Code or laws of the Republic of Armenia on fees;
(15) assets — any property belonging to the taxpayer by the right of ownership, property right and personal non-proprietary right;
(16) intangible asset — non-material asset, except for funds, financial assets and goodwill;
(17) financial asset — financial asset as defined by relevant international accounting standards, except for funds;
(18) cash — the currency of the Republic of Armenia or foreign currency in the form of banknotes or coins;
(19) fixed asset — fixed asset and investment property as defined by relevant international accounting standards;
(20) original cost of asset — the sum total of the asset acquisition price (in case of acquisition without compensation — the price of asset being received and in case of investment in the authorised capital (share capital) — the price determined upon arrangement of parties, which shall be decided on by an independent appraiser in the cases and manner provided for by law), construction or establishment or elaboration costs (including non-compensated costs and taxes and fees not offset (deducted) as prescribed by the Code), transportation, installation costs and/or other costs directly related to acquisition expressed in monetary value. In case the object of leasing (types thereof) is transferred to the taxpayer by the right of ownership, the initial value of asset shall be considered to be the initial value calculated in accordance with point 70 of this part for the given object of leasing. The Government shall define the procedure for determining the initial value of asset due to force majeure — that is as a consequence of emergency and unpreventable circumstances in given conditions;
(21) liability — the existing debt of the taxpayer;
(22) original cost of liability — the sum total of assets — expressed in monetary value — needed for discharging (satisfying) the liability at the moment of emergence thereof;
(23) income — entrepreneurial, personal and/or passive income;
(24) entrepreneurial income — increase in asset or decrease in liability attributed to the activity carried out by an organisation, individual entrepreneur or notary, which, taken separately, results in the increase in own capital of an organisation or in increase of net assets of an individual entrepreneur or notary except for elements not considered to be income prescribed by Article 108 of the Code and dividends considered to be personal income within the meaning of point 25 of this part, received by a resident natural person considered to be an individual entrepreneur or a notary. Within the meaning of this point, the income received from the entrepreneurial activity of a natural person who is not considered to be an individual entrepreneur and notary, shall also be deemed to be an entrepreneurial income;
(25) personal income — fund or another asset (including in-kind) attributed to the activity carried out by a natural person within the framework of employment or civil law contracts or upon any other basis (except for the cases prescribed by points 24 and 26 of this part). Within the meaning of this point, the dividend received by an individual entrepreneur or a resident natural person considered to be a notary, shall be deemed to be a personal income regardless of the circumstances of receiving the dividend as an individual entrepreneur or a notary and provisions of point 26 of this part;
(26) passive income — incomes received exclusively from the activity of other persons through the investment (provision) of assets by a natural person or a non-resident organisation record-registered but having no permanent establishment in the Republic of Armenia in accordance with Article 27 of the Code, in particular dividend, interest payment, royalty, rental and surplus value of assets (except for the cases prescribed by point 24 of this part and dividends considered to be personal income within the meaning of point 25 of this part, received by a resident natural person considered to be an individual entrepreneur or a notary);
(27) gross income — the sum total of the incomes prescribed by the Code received or to be received during the reporting period;
(28) entrepreneurial cost — decrease in an asset or increase in liability attributed to the activity carried out by an organisation, individual entrepreneur or notary, which, taken separately, results in the decrease in own capital of an organisation or in decrease in net assets of an individual entrepreneur or notary, except for elements not considered to be expenditure prescribed by Article 112 of the Code;
(29) own capital — the difference between the assets and liabilities of an organisation;
(30) book value of an asset — the difference between the original value of an asset and the deductions (including depreciation or amortisation deductions) made from it for taxation purposes with consideration of the results of re-assessment carried out as prescribed by point 2 of part 1 of Article 106 of the Code and the capital expense prescribed by point 1 of part 3 of Article 121 of the Code. In case the object of leasing (types thereof) is transferred to the taxpayer by the right of ownership, when determining the book value of the asset, deductions made from it for the purpose of taxation of the given object of leasing shall be deduced with consideration of the capital expense, prescribed by point 1 of part 3 of Article 121 of the Code, made by the lessee before transferring the object of leasing to the lessee by the right of ownership;
(31) book value of liability — difference between the initial value of liability and deductions made from it for taxation purposes with consideration of the results of re-assessment carried out as prescribed by point 2, part 1 of Article 106 of the Code;
(32) dividend — the income received or to be received by a participant as a distribution of profit (including interim distribution) received from participation in the authorised capital or in share or equity capital of an organisation (stock, share, unit) or joint activity;
(33) interest — income received or to be received for the use or sales price of funds provided to another person on the principle of repayment (including for acquiring debt security, as a borrowing, advance payment paid to the bank account of the serving bank) for a deferred payment. Fine for overdue payment as stipulated by law or by a transaction, including the bank interest, shall not be deemed to be interest;
(34) royalty — income received or to be received from the use of the intellectual property right or other non-proprietary rights of a taxpayer. In particular, the income received for the use of invention, patents, copyright in the sphere of literature, science or art, including films for television or radio communication, audio and audio-visual recordings, computer programs, certificate, trademark, design or model, scheme, secret formula or process or industrial, trade or scientific information or experience shall also be deemed to be royalty. The concept of royalty shall be applied in Section 10 of the Code in the meaning of part 2 of Article 197 of the Code;
(35) rental — income received or to be received by another person for the use of property. The amount paid by a sub-lessee to a lessee shall also be deemed to be a rental;
(36) capital gain — positive difference between the sales price and the book value of an asset of a non-resident organisation record-registered but having no permanent establishment in the Republic of Armenia or a non-resident natural person record-registered but having no permanent establishment in the Republic of Armenia, in accordance with Article 27 of the Code;
(37) tax benefit — exception from the general procedure and/or terms for calculating and paying taxes, fines and/or penalties prescribed by the Code, which does not entail emergence of or decrease in a tax liability or in the result of which the amount of tax liability subject to discharge is eliminated or the terms of its calculation and/or discharge are postponed;
(38) goods — any asset other than funds, financial assets, intangible assets and goodwill, unless otherwise prescribed by the Code. In operations for purchase and sale of foreign currency (foreign currency exchange), foreign currency shall also be deemed to be goods;
(39) identical goods — goods that are identical in all aspects, including physical and chemical characteristics, quality, reputation (trademark), as well as description of location in case of an immovable property. Moreover, deviations in the appearance of the goods, which may not be a decisive reason for customers to prefer one of comparable goods over the others, shall not be a satisfactory condition for not considering such goods as identical;
(40) similar goods — goods, which, although not identical, have similar characteristics and composition, which enables them to be applied for the same purpose and interchangeably. Moreover, to determine the similarity of goods, among other factors their quality and reputation (trademark), as well as description of location in case of immovable property, shall be taken into account,;
(41) supply of goods — transfer of the right of ownership over goods from one person to another for a certain form of compensation (including partial compensation or compensation through grants or subsidies) or without compensation. Within the meaning of this point, supply of goods shall also mean:
a. alienation of goods through pipelines and power transmission lines;
b. provision of goods by a participant of a joint activity to the participant accountable for joint activity, as an investment made in the joint activity, where those goods are provided before the accountable participant issues the statement prescribed by Article 32 of the Code;
c. transfer of the right of ownership over the goods (collateral) from the pledgor to the pledgee or a person indicated by the pledgee;
d. transfer of the object of leasing by the lessor to the lessee, where the contract on leasing (types thereof) provides that the right of ownership over the object of lease may be transferred to the lessee upon expiration of the contract or prior to its expiration;
(42) transportation of goods — movement of goods transported by the taxpayer between places of delivery and/or points of delivery thereof; or of goods under a deposit, delegation or agency contracts that provide for the condition of acting on behalf of a principal; or of goods transferred or returned for processing; or of goods being returned as a result of processing of inventory received for processing; or movement of goods acquired and transported (including by the carrier) from any place of delivery or point of delivery, without transferring the ownership right over the goods from one person to another;
(43) work — an action, the result of which is material and can be alienated for satisfying the needs and/or demands of another person;
(44) service — an action, the result of which is not material and which the receiver consumes during that action;
(45) identical work — work which is identical in all respects, including the requirements presented to the person delivering the work, quality of work and the reputation (trademark) of the person delivering the work. Moreover, the deviations in the work specifications, which may not be a decisive ground for the recipient of work to prefer one comparable work over the other, shall not be a sufficient condition for not considering such work as identical;
(46) identical service — services which are identical in all respects, including the requirements presented to the person providing the service, the quality of service and the reputation (trademark) of the person providing the service. Moreover, the deviations in the specifications of services, which may not be a decisive ground for the recipient of services to prefer one comparable service over the other, shall not be a sufficient condition for not considering such services as identical;
(47) performance of work — transfer of the right of ownership over the result of work from one person to another for a certain form of compensation (including partial compensation or compensation through grants or subsidies) or without compensation. Within the meaning of this point, the performance of work by a participant of a joint activity for the participant accountable for the joint activity, as an investment made in the joint activity, shall also be deemed to be performance of work, provided that this work is carried out before the accountable participant presents the statement prescribed by Article 32 of the Code;
(48) provision of service — performance of an action by one person for the benefit of another for a certain form of compensation (including partial compensation or compensation through grants or subsidies) or without compensation. Within the meaning of this point, provision of service by a participant of a joint activity for the participant accountable for the joint activity, as an investment made in the joint activity, shall also be deemed:
a. to be provision of service, if that service is provided before the accountable participant submits the statement prescribed by Article 32 of the Code;
b. provision of electronic services (hereinafter referred to as “electronic service”) — provision of services via information and telecommunication network (electronic communication), including via the Internet, provision whereof is impossible without the use of information technology. The list of electronic services shall be defined by the Government and published on the official website of the Tax Authority.
(49) comparable circumstances of transactions involving supply of goods, performance of work and/or provision of services — factors, which do not usually impact the price of supplied goods, performed work and/or provided service. In particular, when determining the comparable circumstances, seasonality, consignment of supplied goods, the volume of performed work and/or provided service, conditions for supply of goods, performance of work and/or provision of service (in particular, by delivery, without delivery, by advance payment, deferred payment to the supplier by purchaser, existing or future, by issuing insurance bonds or without it) and related services (in particular, installation, testing) as well as post-sale guarantee service shall be taken into consideration;
(50) sales turnover — entrepreneurial income to be received in the result of supply of goods, performance of work and/or provision of services expressed in monetary value, which shall not include VAT, excise tax and/or environmental tax amounts;
(51) personal property of a natural person — property for personal, family or home use belonging to a natural person by ownership right and subject to use for consumer purposes;
(52) property of a natural person used for entrepreneurial activity — property that is not the personal property of a natural person, except for the cases provided by the Code;
(53) sales — transfer of the right of ownership from one person to another over the goods and/or the result of performed work or provision of service for a certain form of compensation (including partial);
(54) alienation — transfer of the right of ownership from one person to another over the goods and/or the result of performed work or provision of service for a certain form of compensation (including partial) or without compensation;
(55) paper-transfer document — accounting document formally corresponding to the requirements prescribed by Article 55 of the Code (supply of goods, performance of work and/or provision of service), the transaction mentioned wherein has not been actually performed between the parties who have compiled that document or has been performed by indicating data smaller by 20 percent and more than one or more of the data defined in point 7 and/or 8 of part 4 of Article 55 of the Code. An accounting document shall not be deemed to be a paper-transfer document where the taxpayer issuing it is liable for performing the transaction, pursuant to a contract on supply of goods, performance of work and/or provision of service. Paper-transfer documents shall not be a basis for calculation and/or payment of taxes and/or fees by taxpayers;
(56) accompanying document — a relevant accounting document prescribed by Article 55 of the Code, which proves the supply and transportation of goods in cases and manner prescribed by the Code;
(57) place of supply — unit of immovable property, having or not having an address, trade facility, sales outlet of a trading area, itinerant trade point, object of immovable property as a whole composed of immovable property units, subsoil area, a geographic object outside the inter-settlement and settlement borderlines or a general area (one whole area located or not located at the same address and belonging to the taxpayer by the right of possession or enjoyment but not demarcated by the areas belonging to other persons by the right of possession or enjoyment) belonging to the taxpayer or used by him or her, wherefrom the goods are supplied or transported;
(58) point of supply — means of transportation, which is used by a taxpayer for supplying or transporting his or her goods, as well as an itinerant trade point;
(59) electronic submission of tax calculation reports or other documents — submission of tax calculation reports or other documents to a tax authority by means of an electronic information system using electronic technologies (applying electronic digital signature, electronic code and password);
(60) electronic digital signature — means used for identifying the signatory, as well as for protecting the electronic document from forgery and distortion as prescribed by the Law of the Republic of Armenia “On electronic document and electronic digital signature”;
(61) electronic code and password — combination of an entry name and password presented by a unique sequence of electronic digital symbols, which enables to enter the information system of the tax authority, identify the person submitting the electronic document, as well as ensures the confidentiality and protection of information regarding the person entering the electronic system against the actions of other persons;
(62) tax dispute — disagreement between a taxpayer and the tax authority with regard to relations pertaining to the exercise of tax control (including inspections and examinations) by the tax authority over the calculation and payment of taxes and fees, as well as fulfilment of other requirements prescribed by the Code and laws of the Republic of Armenia on fees;
(63) tax secret — any information received by the tax authority or a tax officer regarding the taxpayer and his or her activity, except for:
a. information published by the taxpayer or upon his or her consent;
b. information on a taxpayer identification number;
c. information included in the charter of a taxpayer;
d. information on violation of the requirements of the legal acts regulating tax relations and on the applied sanctions;
e. information on a taxpayer or the activity of a taxpayer provided to the tax and customs authorities of other states based on international or inter-agency treaties (agreements) in cases of submitting it to those authorities;
f. information on the number of employees or contract workers declared by the taxpayer for the reporting month;
g. information on the liabilities satisfied through the single account or the single account for administrative acts, as well as liabilities with regard to taxes, fees and state duties not being satisfied through the single account or the single account for administrative acts;
h. information on the tax system of the taxpayer;
i. information subject to publication prescribed by Article 308 of the Code and not specified here.
(64) documents subject to mandatory notification — documents prescribed by the Code or law, which are received both in hard copy and through an electronic system within the framework of administration carries out by the tax authority, as well as documents (letters of instructions, draft acts and protocols, acts and protocols, decisions, orders), provided for by the Code, drawn up by the tax authority within the framework of tax inspections and examinations;
(65) receipt of documents through an electronic system — receipt and confirmation of documents through electronic means subject to mandatory notification by applying automated management systems, and the conformity of the original of the confirmed documents with the external form, i.e. the electronic document shall be certified by the electronic signature of a relevant official receiving them;
(66) electronic notification of taxpayers — posting documents subject to mandatory notification on the taxpayer’s personal page in the electronic management system of the tax authority for submitting reports, which shall be certified by the electronic management system;
(67) receivables — amount of debt to be paid (otherwise compensated) to the taxpayer by other persons (debtors), except for the amounts of debt to be paid (returned) to the taxpayer for tax liabilities, duties and other mandatory payments to the state and community budgets;
(68) payables — amount of debt (including salary and other equivalent payments, dividends) to be paid (otherwise compensated) to other persons (creditors) by the taxpayer, except for the amounts of debt to be paid by the taxpayer for tax liabilities, duties and other mandatory payments to the state and community budgets;
(69) object of leasing — the object of leasing prescribed by the Civil Code of the Republic of Armenia;
(70) original cost of the object of leasing — original cost of the object of leasing —- the cost reflected in the lessee's receipt of the object of leasing, the sum total of the construction, creation or development expenses (including taxes and fees which are not compensated for and not offset (reduced) as prescribed by the Code), transportation, location expenses and/or other expenses directly related to the acquisition, expressed in monetary terms;
(71) book value of the object of leasing — the difference between the original value of an object of leasing at the lessee and the deductions (including depreciation or amortisation deductions) made from it for taxation purposes with consideration of the capital expense prescribed by point 1 of part 3 of Article 121 of the Code.
(72) tax case file — an individual case file administered in the procedure established by the tax authority for preservation of documents related to the taxpayer;
(73) discount — decrease (reduction) in the price of the delivered goods or the work performed or the service provided;
(74) electronic trading platform — combination of hardware and software to provide for organisational, informational and technical solutions for the purpose of organising electronic trade of goods on the Internet, which shall:
a. be used for the purpose of displaying goods, presenting the conditions of sale of goods to the buyer and concluding contracts on electronic trade of goods;
b. be exploited by a non-resident organisation or an individual entrepreneur of another EAEU member state having no permanent establishment in the Republic of Armenia (including those owing the goods);
c. provide conditions for the purchase and sale, transportation of goods having the status of EAEU product between an organisation or an individual entrepreneur of an EAEU member state and a natural person not deemed an individual entrepreneur or a notary of another member state and conditions for delivery of those goods from an EAEU member state to the territory of another member state through electronic channels;
(75) electronic trade of goods — sales of goods by a non-resident organisation or an individual entrepreneur of another EAEU member state having no permanent establishment in the Republic of Armenia to natural persons not deemed an individual entrepreneur or a notary in the territory of the Republic of Armenia through electronic platform through Internet information systems, by simultaneously observing the following conditions:
a. electronic formalities of transactions for the sales of goods;
b. making non-cash payment for acquisition of goods;
c. ensuring goods delivery service or ensuring delivery of goods through persons providing courier and/or postal services for the transportation of goods;
(76) analytical recording — keeping records by calculating the original cost and book value of a specific commodity or other asset or service or work, by reflecting its calculation and further changes;
(77) bank account statement — a document (statement) containing information provided for by legal acts as defined by the Central Bank of the Republic of Armenia;
(78) summary information on bank account — data, currency, balance available on the bank account of a taxpayer as of 1 January and 31 December of the tax year, as well as sum total of amounts credited to and sum total of amounts debited from the bank account during the tax year;
(79)
(80)
(Article 4 supplemented, amended and edited by HO-266-N of 21 December 2017, edited and amended by HO-261-N of 23 March 2018, amended and supplemented by HO-338-N of 21 June 2018, supplemented by HO-68-N of 25 June 2019, HO-172-N of 23 September 2019, edited by HO-146-N of 10 September 2019, amended by HO-185-N of 25 March 2020, supplemented by HO-280-N of 1 June 2020, HO-321-N of 18 June 2020, edited by HO-80-N of 3 March 2021, amended, edited by HO-244-N of 26 May 2021, edited by HO-359-N of 17 November 2021, supplemented by HO-302-N of 7 July 2022, supplemented, edited by HO-55-N of 4 March 2022, supplemented by HO-595-N of 23 December 2022, HO-375-N of 22 November 2023, HO-125-N of 28 February 2024, edited and supplemented by HO-101-N of 1 March 2023, edited by HO-104-N of 28 February 2024)
(the provision of the Article declared as contradicting the Constitution by Decision SDVo-1529 of 12 May 2020 has been brought into compliance with the Constitution by amendment to Article 2 of Law HO-80-N of 3 March 2021)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-172-N of 23 September 2019 has a transitional provision)
(Law HO-280-N of 1 June 2020 has a transitional provision)
(Law HO-321-N of 18 June 2020 has a transitional provision)
(Law HO-244-N of 26 May 2021 has a transitional provision)
(Law HO-55-N of 4 March 2022 has a transitional provision)
(Law HO-595-N of 23 December 2022 has a transitional provision)
(Law HO-302-N of 16 June 2020 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
(Law HO-104-N of 28 February 2024 has a transitional provision)
(Law HO-125-N of 28 February 2024 has a transitional provision)
(Article as amended by Law HO-269-N of 12 June 2024 shall enter into force on the day the Law “On regulation of gambling activities” is put into full effect)
(Article as amended by Law HO-292-N of 12 June 2024 shall enter into force on 1 January 2026)
Article 5. Rules for the use of other definitions in the Code
1. Apart from the definitions prescribed by Article 4 of the Code, other definitions are used in the Code the sense and meaning whereof are explained in the relevant sections or chapters of the Code concerning these definitions.
2. The definitions of “taxable object”, “object of payment”, “tax base”, “payment base”, “reporting period” shall be used in legal acts regulating tax relations in the context and with the meaning indicated in the relevant sections or articles of the Code concerning these definitions.
3. Definitions used in the Code for the purpose of regulating relations pertaining to calculation and payment of taxes and fees with regard to the transfer of goods across the customs border of the Eurasian Economic Union (EAEU) which are not prescribed by the Code shall be used in the meanings prescribed by the customs legislation of the EAEU and the laws and other legal acts of the Republic of Armenia regulating customs relations.
4. Definitions used in the legal acts regulating the field of accounting are used in the Code in the sense and meaning used in those legal acts unless otherwise prescribed by the Code.
5. Definitions used in the legal acts pertaining to the civil, administrative, criminal, labour, family, land spheres, the use of natural resources and environmental protection, licensing, notification, authorisation and other special fields shall be used in the Code within the context and in the meaning used in the legal acts pertaining to the relevant field unless otherwise prescribed by the Code.
6. Where the explanation to the Foreign Economic Activity Commodity Nomenclature (hereinafter referred to as the “CN FEA”) prescribed by the customs legislation of the EAEU used in the Code is different than the interpretation prescribed by the Code with regard to the relevant CN FEA code, the interpretation prescribed by the Code shall be applied.
(Article 5 supplemented by HO-266-N of 21 December 2017)
CHAPTER 3
SYSTEM OF TAXES AND PAYMENTS
Article 6. Types of taxes
1. In the Republic of Armenia, the following shall be applicable:
(1) state taxes which are:
a. value added tax (hereinafter also referred to as “VAT”);
b. excise tax;
c. profit tax;
d. income tax;
e. environmental tax;
f. road tax;
g. turnover tax;
h. (sub-point repealed by HO-68-N of 25 June 2019)
(2) local taxes which are:
a. immovable property tax;
b. vehicle property tax.
2. Taxes not prescribed by points 1 and 2 of part 1 of this Article cannot be defined in the Republic of Armenia.
(Article 6 amended by HO-266-N of 21 December 2017, HO-68-N of 25 June 2019)
(Law HO-68-N of 25 June 2019 has a transitional provision)
Article 7. Types of fees
1. In the Republic of Armenia, the following shall be applicable:
(1) state fees which shall be of the following types:
a. state duty;
b. payment for the use of natural resources;
c. welfare payment;
d. mandatory payment for granting (extending the validity of) the permit for the use of radio frequency and the mandatory payment for the use thereof;
e. mandatory fee for regulation of public services;
f. pension fee;
(2) local fees which shall be of the following types:
a. local duty;
b. local payment.
(Article 7 supplemented by HO-266-N of 21 December 2017)
Article 8. Taxation systems
1. General and specific taxation systems shall be applicable in the Republic of Armenia.
2. Within the framework of the general taxation system, organisations, individual entrepreneurs and notaries shall be taxed, in particular, under VAT and/or profit tax.
3. In specific taxation systems:
(1) within the framework of the system of turnover tax, organisations shall be taxed under turnover tax replacing the VAT and/or the profit tax, and individual entrepreneurs shall be taxed under profit tax and turnover tax replacing the VAT;
(2) (point repealed by HO-68-N of 25 June 2019)
(3) within the framework of the system of micro-entrepreneurship, organisations and natural persons shall be exempt, in particular, from taxation under VAT and/or profit tax, as well as under turnover tax in the cases provided for in Chapter 56 of the Code.
4. For the organisations and individual entrepreneurs operating under the specific taxation systems, other taxes and fees prescribed by the Code with regard to the relations that are regulated by the Section of the Code on specific taxation systems (which are not replaced by turnover tax or from which entities of micro-entrepreneurship are not exempted) shall be calculated and paid in the manner prescribed by the Sections of the Code on the relevant tax or fee unless the relevant Chapters of the Code on specific taxation systems provide for peculiarities of calculation and payment of such taxes and fees.
(Article 8 supplemented and edited by HO-266-N of 21 December 2017, amended and edited by HO-68-N of 25 June 2019, amended by HO-285-N of 12 June 2024)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-285-N of 12 June 2024 has a transitional provision)
Article 9. General conditions for setting taxes and fees
1. Taxes and fees shall be considered to be set only if the following elements have been set, except for cases prescribed by part 3 of this Article:
(1) scope of taxpayers;
(2) taxable object;
(3) tax base;
(4) tax rate;
(5) method of calculation of the tax;
(6) procedure and time limits for paying the tax.
2. The elements necessary for setting the tax and the payment for the use of natural resources shall be prescribed by the Code.
3. The provisions of part 1 of this Article shall not be applied to fees other than the payment for the use of natural resources prescribed by the Code; relations pertaining to other fees shall be regulated by the laws of the Republic of Armenia on fees.
4. The regulations prescribed by Articles 10-12, 14 and 18 of the Code concerning the elements for setting of taxes specified in part 1 of this Article shall — except for the regulation prescribed by part 3 of Article 10 of the Code — be applicable also to the payment for the use of natural resources.
5. The regulations pertaining to taxes prescribed by Chapters 6-7, 67-72 and 76-80 of the Code that do not concern the elements for setting of taxes specified in part 1 of this Article shall be applicable to the fees provided for by the Code.
(Article 9 supplemented by HO-149-N of 15 June 2022)
(Law HO-149-N of 15 June 2022 has a final part and a transitional provision)
Article 10. Taxable object
1. Taxable object shall mean any transaction, profit, property, type of activity (including any action or function) or any other object the existence whereof or the existence of the right of ownership over which or the exercise of this right in accordance with the Code entails for the taxpayer the obligation of calculating or paying the tax.
2. A separate taxable object shall be prescribed for each tax.
3. The same taxable object shall be taxed only once under the same tax with the same taxpayer within the reporting period.
Article 11. Tax base
1. Tax base is the value, physical or other characteristic of the taxable object.
2. A separate tax base and method of calculation thereof shall be prescribed for each tax.
Article 12. Tax rate
1. Tax rate is a value (percentage) and/or an invariable which shall be applied to the tax base for the purpose of determining the tax amount.
2. A separate tax rate (rates) shall be set for each type of tax.
Article 13. Reporting period
1. Reporting period shall mean the period of time for which the taxes and/or the payment for the use of natural resources are calculated and paid, tax calculation reports (except for import tax declarations, announcement on import of goods and payment of indirect taxes (or on exemption from indirect taxes or payment of indirect taxes in a different manner) and export tax declarations) are submitted and other obligations prescribed by the Code are performed.
2. The reporting period shall refer only to tax calculation reports and the period of time shall refer to other tax documents, as well as the deadlines for payment.
3. Reporting period shall mean the reporting month or the reporting quarter or the reporting semester or the reporting year.
4. Reporting month shall mean the period comprising the first day through the last day of any month. Reporting quarter shall mean the period comprising the first day of January, April, July or October of the year through the last day of March, June, September or December of the same year respectively. Reporting semester shall mean the period comprising the first day of January or July of the year through the last day of June or December of the same year respectively. Reporting year or tax year shall mean the period comprising 1 January of the year through 31 December of the same year. For the purposes of the provisions of this part, the peculiarities prescribed by parts 5 and 6 of this Article shall be taken into account.
5. In the cases of state registration of the organisation (state record-registration in the cases of separate subdivisions and institutions of an organisation) or state record-registration of a natural person as an individual entrepreneur or appointment of a notary, the start of the reporting period shall be the day of state registration of an organisation (in case of separate subdivisions and institutions of an organisation, state record-registration) or state record-registration of a natural person as an individual entrepreneur or the day on which a notary is appointed.
6. In case of liquidation of an organisation (in the case of separate subdivisions and institutions of an organisation, removal from the state record-registration) or removal of an individual entrepreneur from state record-registration or dismissal of a notary from his or her position, the end of the reporting period shall be the day of liquidation of an organisation (in the case of separate subdivisions and institutions of an organisation, removal from the state record-registration) or removal of an individual entrepreneur from the state record-registration or the day of dismissal of a notary from his or her position.
(Article 13 amended by HO-68-N of 25 June 2019)
(Law HO-68-N of 25 June 2019 has a transitional provision)
Article 14. Procedure for tax calculation
1. Tax calculation shall be carried out for each reporting period in accordance with the procedure prescribed by the Sections or Chapters of the Code on different types of taxes, except for cases prescribed by the Code.
2. Taxpayers shall carry out the tax calculation independently, except for cases prescribed by parts 3-6 of this Article.
3. In cases prescribed by the Code, tax calculation shall be carried out by tax agents.
4. Calculation of taxes with regard to a joint venture conducted in the manner prescribed by Chapter 5 of the Code, except for taxes prescribed by part 1 of Article 32 of the Code, shall be carried out by the participant having assumed the obligation of calculating and paying the taxes and fees under the contract on joint activity (hereinafter referred to as the “reporting participant of the joint activity”), except for cases prescribed by part 6 of this Article.
5. In cases prescribed by Sections 11 and 12 of the Code, the tax calculation shall be carried out by the relevant record-keeping bodies.
6. In cases prescribed by Section 17 of the Code, tax calculation, and in cases prescribed by Sections 6 and 10 of the Code, the calculation of the advance payment shall be carried out (or the tax calculation shall be verified) by the tax authority.
7. Tax calculation shall be carried out in Armenian dram.
(Article 14 supplemented by HO-266-N of 21 December 2017)
Article 15. Methods of calculation of taxes or fees for the use of natural resources and record-registration thereof
(Title supplemented by HO-266-N of 21 December 2017)
1. Taxes or fees for the use of natural resources shall be calculated by the accrual basis accounting method unless the Code provides that the taxes or fees for the use of natural resources shall be calculated by cash basis accounting method. For the purposes of the Code:
(1) accrual basis accounting method shall mean that:
a. a taxpayer keeps records of the income and expenses from the moment of obtaining the right to receive the income or from the moment of recognising the expenses, irrespective of the time of receiving compensation or making a payment;
b. a taxpayer keeps records of taxes, fees for the use of natural resources and the amounts offset (reduced) from taxes from the moment of arising of tax liability or generation of the amounts offset (reduced) from taxes, irrespective of the moment of receiving compensation for the transactions effected by him or her or making fees to the suppliers or tax or customs authorities with regard to the offset (reduced) amounts;
(2) cash basis accounting method shall mean that:
a. a taxpayer keeps records of the income and expenses from the moment of receiving compensation or making fees, irrespective of the moment of obtaining the right to receive the income or from the moment of recognising the expenses;
b. a taxpayer keeps records of taxes, fees for the use of natural resources and the amounts offset (reduced) from taxes from the moment of receiving compensation for the transactions effected by him or her or making fees to the suppliers or tax or customs authorities for the offset (reduced) sums, irrespective of the moment of arising of the tax liability or generation of the sums offset (reduced) from taxes.
2. In cases prescribed by this part, taxes and fees for the use of natural resources shall be calculated by the method of separated accounting. Separated accounting method of calculation of taxes or fees for the use of natural resources shall mean that:
(1) (point repealed by HO-68-N of 25 June 2019)
(2) (point repealed by HO-68-N of 25 June 2019)
(3) where a taxpayer concurrently performs types of activities or transactions subject or not subject to taxation, the taxpayer shall maintain separated accounting of taxable objects, tax bases, as well as deductions, offset (reduced) amounts prescribed by the Code with regard to types of activities or transactions that are not subject to taxation and of taxable objects, tax bases, as well as deductions, offset (reduced) amounts prescribed by the Code with regard to types of activities or transactions subject to taxation;
(4) where a taxpayer at the same time receives [from different sources] income both subject and not subject to taxation, the taxpayer shall maintain separated accounting of income not subject to taxation and deductions directly related to receiving thereof and of income subject to taxation and deductions directly related to receiving thereof;
(5) where a taxpayer concurrently receives elements (income) not considered to be income for the purpose of taxation and those considered to be income for the purpose of taxation, the taxpayer shall maintain separated accounting of the elements (income) not considered to be income for the purpose of taxation and deductions directly related to receipt thereof, and of elements (income) considered to be income for the purpose of taxation and deductions directly related to receipt thereof;
(6) where a taxpayer concurrently performs types of activities or transactions subject to taxation at basic and differentiated rates of the same tax, the taxpayer shall maintain separated accounting of the taxable objects and tax bases with regard to those types of activities or transactions;
(7) where a taxpayer performs transactions (operations) involving such taxable objects and/or tax bases which can be revised or adjusted in cases prescribed by the Code, the taxpayer shall maintain separated accounting of the taxable objects and/or tax bases formed with regard to these transactions (operations);
(8) where a taxpayer is considered to be a reporting participant or a participant of a joint venture conducted as prescribed by Chapter 5 of the Code, the taxpayer shall maintain separated accounting of taxable objects, tax bases, tax amounts, as well as deductions, offset (reduced) amounts prescribed by the Code with regard to his activity other than joint activity and of taxable objects, tax bases, tax amounts, as well as deductions, offset (reduced) amounts prescribed by the Code formed with regard to the joint activity;
(9) where a non-resident organisation or a non-resident natural person of the Republic of Armenia has a record-registered permanent establishment in the Republic of Armenia, the non-resident organisation or the non-resident natural person shall be obliged to maintain separated accounting of the taxable objects, tax bases, tax amounts, as well as deductions and offset (reduced) amounts prescribed by the Code with regard to the record-registered permanent establishment of the non-resident organisation located in the Republic of Armenia or the non-resident natural person residing in the Republic of Armenia.
3. Where it is impossible to maintain the separated accounting prescribed by points 3-8 of part 2 of this Article, in cases prescribed by points 3-8 of part 2 of this Article, taxable objects, tax bases, tax amounts, as well as deductions and offset (reduced) amounts prescribed by the Code (for the part with regard to which separated accounting cannot be maintained) shall be calculated by the weighted average method, taking as a basis:
(1) (point repealed by HO-68-N of 25 June 2019)
(2) (point repealed by HO-68-N of 25 June 2019)
(3) in the case prescribed by point 3 of part 2 of this Article, the portion of taxable objects, tax bases, as well as deductions and offset (reduced) amounts prescribed by the Code that are attributed to the types of activity or transactions subject to taxation, respectively, in the structure of the taxpayer’s objects of general taxation, general tax bases, as well as general deductions or general offset (reduced) amounts prescribed by the Code;
(4) in the case prescribed by point 4 of part 2 of this Article, the portion of income subject to taxation in the structure of the taxpayer’s total income;
(5) in the case prescribed by point 5 of part 2 of this Article, the portion of the elements (income) considered to be income for the purpose of taxation in the structure of the taxpayer’s total income;
(6) in the case prescribed by point 6 of part 2 of this Article, the portion of taxable objects or tax bases that are attributed to a type of activity or a transaction subject to taxation at the rate other than basic tax rate in the structure of the taxpayer’s general taxable objects or general tax bases respectively;
(7) in the case prescribed by point 7 of part 2 of this Article, the portion of taxable objects or tax bases with regard to the transactions (operations) mentioned in that point, respectively in the structure of taxpayer’s general taxable objects or general tax bases;
(8) in the case prescribed by point 8 of part 2 of this Article, the portion of taxable objects, tax bases, as well as deductions or offset (reduced) amounts prescribed by the Code with regard to the activity other than joint activity, respectively, in the structure of the taxpayer’s general taxable objects, general tax bases, as well as general deductions or general offset (reduced) amounts prescribed by the Code.
4. For the purposes of this Article, it shall be held that it is impossible to maintain separated accounting where taxable objects or tax bases or tax amounts or income, or the deductions or offset (reduced) amounts pertaining to generation of income that are prescribed by the Code cannot be directly attributed to the following that are subject to taxation, not subject to taxation, subject to taxation in different taxation systems, subject to taxation at differentiated rates:
(1) a specific transaction or
(2) a specific type of activity or
(3) a specific type of income.
5. Where it is possible to maintain separated accounting prescribed by points 3-8 of part 2 of this Article but the taxpayer has failed to ensure it, the tax authority shall be entitled to determine the taxable objects or tax bases or tax amounts or income, or deductions or offset (reduced) amounts pertaining to generation of income that are prescribed by the Code by applying the relevant weighted average method prescribed by points 3-8 of part 3 of this Article.
6. The peculiarities of application of the method of separated accounting prescribed by part 2 of this Article and the weighted average method prescribed by part 3 of this Article are prescribed by Sections on separate types of taxes in the special part of the Code.
7. In cases prescribed by Sections of the Code on separate types of taxes, the accounting, serving as a basis for the calculation of taxes or tax bases, shall be maintained based on the provisions of the laws and other legal acts regulating accounting and financial statements unless the Code provides for other peculiarities of their application.
8. As regards considering the income received by a natural person considered to be an individual entrepreneur or a notary, as income of an individual entrepreneur or a notary or of the given natural person, the fact of the transaction party acting as an individual entrepreneur or a notary or a natural person shall be taken into account.
9. Individual entrepreneurs shall be obliged to maintain records of assets and liabilities as prescribed by the Government.
10. Taxpayers shall be obliged to maintain analytical records keeping.
(Article 15 supplemented and amended by HO-266-N of 21 December 2017, amended by HO-68-N of 25 June 2019, supplemented by HO-595-N of 23 December 2022)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-595-N of 23 December 2022 has a transitional provision)
Article 16. Rules of accounting of transactions and operations denominated in foreign currency
1. Within the scope of transactions and operations denominated in foreign currency:
(1) tax bases formed with regard to transactions relating to the import or export of goods and original costs of goods shall be determined:
a. in case of operations relating to import of goods from states that are not members of the EAEU or export of goods to states that are not members of the EAEU, as of the date of registration of the customs declaration for the import or export of goods respectively (irrespective of the fact of submitting afterwards the verified customs declaration for the import of goods or the verified customs declaration for the export of goods as prescribed by the EAEU uniform customs legislation with regard to these operations) based on the average market exchange rate announced by the Central Bank of the Republic of Armenia as of that day;
b. In case of operations relating to import of goods from an EAEU Member State or to the export of goods to an EAEU Member State, as of the date of importing the goods to the territory of the Republic of Armenia (crossing the state border of the Republic of Armenia) or exporting the goods from the Republic of Armenia (crossing the state border of the Republic of Armenia) respectively, based on the average market exchange rate announced by the Central Bank of the Republic of Armenia for that day. In case the goods cross the border of the Republic of Armenia by air transport or postal service rendered by a postal operator, the tax base and initial value of the goods for operations relating to the import of goods from an EAEU Member State or export of goods to an EAEU Member State, are determined as of the date referred to in the transportation documents, namely the bill of lading, consignment or other documents, based on the average market exchange rate announced by the Central Bank of the Republic of Armenia for that day;
(2) in case of transactions involving supply of goods, performance of work or rendering of services concluded between a resident organisation or a resident natural person of the Republic of Armenia and a non-resident organisation or a non-resident natural person of the Republic of Armenia (except for the permanent establishment record-registered in the Republic of Armenia of a non-resident organisation or a non-resident natural person) within the territory of the Republic of Armenia, as well as in cases where the obligation for calculating and paying the value added tax with regard to the transaction involving supply of goods, performance of work or rendering of services carried out by a non-resident organisation having no permanent establishment record-registered in the Republic of Armenia shall be undertaken — in accordance with Section 4 of the Code — by a resident organisation or a resident natural person of the Republic of Armenia or the permanent establishment record-registered in the Republic of Armenia of the non-resident organisation or the non-resident natural person who is considered to be a party to the transaction, the formed tax bases and original costs shall be determined as of the date of issuance of the relevant settlement document (irrespective of the fact of further issuing an adjusting accounting document as prescribed by the Code as a result of the adjustment of this transaction or irrespective of the fact of further cancelling the accounting document issued with regard to this transaction) based on the average market exchange rate announced by the Central Bank of the Republic of Armenia;
(2.1) Tax bases formed in case of transactions related to the provision of electronic services between a natural person who is not an individual entrepreneur or a notary in the territory of the Republic of Armenia and a non-resident organisation having no permanent establishment in the Republic of Armenia, registered with the tax authority in accordance with the procedure prescribed by part 9.1 of Article 288 of the Code, shall be determined as of the day constituting the time of provision of electronic service based on the average exchange rate for the given day in currency markets as published by the Central Bank of the Republic of Armenia;
(2.2) Tax bases formed within the scope electronic trade between a natural person who is not an individual entrepreneur or a notary in the territory of the Republic of Armenia and a non-resident organisation or individual entrepreneur of another EAEU member state having no permanent establishment in the Republic of Armenia, registered with the tax authority as prescribed by part 9.2 of Article 288 of the Code, shall be determined as of the day constituting the time of supply of goods, based on the average market exchange rate announced by the Central Bank of the Republic of Armenia as of that day;
(3) tax amount of the taxable income paid by a tax agent shall be calculated as of the date of payment of that income, based on the average market exchange rate announced by the Central Bank of the Republic of Armenia as of that day;
(4) in the cases not referred to in points 1-3 of this part, the tax bases being formed and the original costs of goods shall be determined as of the date of issue of the relevant settlement document, and in case of absence of a settlement document — as of the date of drawing up of other documents related to a transaction or operation as prescribed by the legislation, based on the average market exchange rate announced by the Central Bank of the Republic of Armenia as of that day.
2. For the purposes of this Article, the average exchange rate announced by the Central Bank of the Republic of Armenia by 16:00 of the given day shall serve as a basis for determining the average market exchange rate announced by the Central Bank of the Republic of Armenia on the given day.
(Article 16 supplemented by HO-266-N of 21 December 2017, HO-338-N of 21 June 2018, edited, amended and supplemented by HO-68-N of 25 June 2019, supplemented by HO-359-N of 17 November 2021, HO-595-N of 23 December 2022)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-595-N of 23 December 2022 has a transitional provision)
Article 17. Rules of accounting of in-kind transactions and operations
1. Tax bases and original costs of assets formed as related to in-kind (non-monetary) transactions and operations shall be determined based on free (market) prices as prescribed by the Government.
(Article 17 amended by HO-261-N of 23 March 2018)
Article 18. Procedure and time limits for paying taxes
1. Taxes shall be paid upon the end of the reporting period (and in cases prescribed by the Code, also by way of advance payment prior to the end of the reporting period).
2. Time limits for paying taxes (including advance fees) shall be prescribed by the special part of the Code, separately for each tax type.
2.1. The payment of a tax, fine and/or penalty prescribed by the Code which is imposed by the inspection or other administrative act drawn up by the tax authority as prescribed by the Code shall be made within a period of 10 days following the day the inspection or other administrative act becomes unappealable.
3. Taxes (including advance fees), fines and/or penalties shall be paid through the payment and settlement system in the Armenian dram.
4. Taxes (including advance fees), fines and/or penalties shall be considered to be paid on the day of transfer — by the Central Bank of the Republic of Armenia — of the sum to the treasury account of the State Budget keeping record of the liability with respect to the relevant tax on the basis of the payment order issued by the bank servicing the payer, and with respect to the payment to the single account or the single account for administrative acts — on the day of crediting the relevant sums to these accounts.
5. For the purpose of satisfying tax liabilities through the single account or the single account for administrative acts:
(1) taxpayers shall make the payment of the tax to the single account or the single account for administrative acts;
(2) no notes concerning the purpose of the payment shall be made in the tax payment order and where notes are made, they shall not be considered by the tax authority.
6. Where errors are detected while making the tax payment, the following rules shall be applicable:
(1) for the identification of the payment as per a taxpayer, the taxpayer identification number shall be of primary importance, then the public services number, and where it is not available, the copy of the statement on non-availability of the public services number issued by the authorised body;
(2) where the payer has mistakenly mentioned another person as a taxpayer in the payment order, as a result of which the tax liability of another person has been satisfied, the tax liability of the other person shall be considered to be satisfied and the sum shall not be returned to the taxpayer. Should this happen, the payer shall acquire the right to a civil and legal demand over the other person.
(Article 18 amended by HO-68-N of 25 June 2019, supplemented, amended by HO-101-N of 1 March 2023)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
Article 18.1. Support programmes for tax administration
1. For the purpose of introducing public control mechanisms for support to tax administration, the Government may define support programmes for tax administration, the procedure and time limits for their implementation.
(Article 18.1 supplemented by HO-376-N of 24 October 2024)
(Law HO-376-N of 24 October 2024 has a transitional provision)
Article 19. Tax benefits
1. The following types of tax benefits can be prescribed by the Code or the laws of the Republic of Armenia:
(1) exemption from taxes;
(2) reduction of the taxable object;
(3) reduction of tax base;
(4) reduction of tax rate;
(5) reduction of tax;
(6) deferral of tax payment;
(7) exemption from, reduction of fines and penalties prescribed by the Code calculated for the violation of the provisions of the Code, as well as deferral of payment thereof.
2. The types of tax benefits prescribed by part 1 of this Article shall be applicable also to the payment for the use of natural resources.
3. Tax benefits shall be prescribed solely by the Code or the laws of the Republic of Armenia, except for the case prescribed by part 3.1 of this Article.
3.1. The Government may prescribe reduction of tax and tax base in the manner, amount and for the time period prescribed by the Government due to force majeure — that is as a consequence of emergency and unpreventable circumstances in given conditions.
4. The taxpayer may submit to the tax authority a statement in the form approved by the tax authority and waive the right to tax benefits. Should the statement prescribed by this part be submitted:
(1) the tax benefit shall terminate with regard to the taxable object formed following the day of submitting the statement;
(2) transactions, operations performed following the day of submitting the statement shall — for the purposes of the Code — be considered to be transactions, operations subject to taxation;
(3) the taxpayer may not withdraw the statement on waiving the right to tax benefit prior to the end of the tax year following the tax year including the day of submitting the statement;
(4) tax benefit which has not been used by the taxpayer shall not be transferred to next reporting periods for the purpose of reducing future tax liabilities;
(5) waiving the right to tax benefits shall not free the taxpayer from application against him or her of the sanctions prescribed for violation of provisions of legal acts regulating tax relations.
5. For organisations and individual entrepreneurs operating in special taxation systems, for the relations regulated by the Section of the Code on special taxation systems, the tax benefits with regard to VAT and profit tax prescribed by the Code shall be suspended, except for tax benefits prescribed with regard to VAT for operations of import of goods to the Republic of Armenia.
6. (part repealed by HO-383-N of 10 December 2021)
7. The procedure for application of tax benefits provided for by the international agreements ratified by the Republic of Armenia shall be established by the Government.
(Article 19 supplemented by HO-266-N of 21 December 2017, amended by HO-383-N of 10 December 2021, supplemented by HO-517-N of 7 December 2022, by HO-375-N of 22 November 2023, amended by HO-285-N of 12 June 2024)
(Law HO-383-N of 10 December 2021 has a transitional provision)
(Law HO-517-N of 7 December 2022 has a final part and a transitional provision)
(Law HO-285-N of 12 June 2024 has a transitional provision)
Article 20. Exclusion of Double Taxation
1. Profit taxable objects and income tax received or to be received outside the Republic of Armenia by resident organisations of the Republic of Armenia and resident natural persons of the Republic of Armenia shall be included in the taxable object under the relevant tax type of these organisations and natural persons and shall be subject to taxation in the Republic of Armenia as prescribed by the Code, unless otherwise prescribed by the Code.
2. For the purpose of taxation of resident organisations of the Republic of Armenia and resident natural persons of the Republic of Armenia, the tax amounts calculated for taxable objects determined as prescribed by part 1 of this Article shall be reduced in the amount of the sums of the relevant taxes which have been collected in foreign states in accordance with the legislation of those states.
3. Amounts of taxes shall be reduced as prescribed by part 2 of this Article in amounts not exceeding the amounts of the relevant taxes calculated for taxable objects formed in foreign states in the manner and at the rates prescribed by the Code.
4. Where the amount of the profit tax or the income tax subject to reduction in accordance with part 3 of this Article exceeds the profit tax or the income tax liability respectively for the given reporting year, the amounts of taxes in excess shall — with regard to the relevant tax type — be subject to reduction from the liabilities of the following reporting years of the organisation or the natural person.
SECTION 2
TAXPAYERS (TAX AGENTS) AND TAX AUTHORITY
(Title amended by HO-261-N of 23 March 2018)
CHAPTER 4
ORGANISATIONS AND NATURAL PERSONS
Article 21. Organisation
1. For the purposes of the Code, organisations shall include:
(1) the Republic of Armenia represented by state authorities communities of the Republic of Armenia represented by the community administration institutions, the Central Bank of the Republic of Armenia, legal persons having obtained state registration in the Republic of Armenia, institutions record-registered in the Republic of Armenia;
(2) organisations registered in a foreign state;
(3) international organisations;
(4) permanent establishments prescribed by Article 27 of the Code, irrespective of the fact of being record-registered with the tax authority as a taxpayer in the manner prescribed by Chapter 58 of the Code;
(5) investment funds.
(Article 21 amended by HO-261-N of 23 March 2018)
Article 22. Resident and non-resident organisations of the Republic of Armenia
1. A resident organisation of the Republic of Armenia (hereinafter referred to as “resident organisation”) shall mean the organisation which is located in the Republic of Armenia.
2. A non-resident organisation of the Republic of Armenia (hereinafter referred to as “non-resident organisation”) shall mean the organisation which — pursuant to part 1 of this Article — is not considered a resident organisation.
Article 23. Location of the organisation
1. Location of an organisation shall mean the place of state registration of the organisation (in case of an institution, the place of state record-registration).
2. Location of the investment fund registered as prescribed by the legislation of the Republic of Armenia shall mean the location of the manager of the fund.
Article 24. Natural person
1. For the purposes of the Code, natural persons shall include:
(1) citizens of the Republic of Armenia;
(2) foreign citizens;
(3) stateless persons.
2. For the purposes of the Code, natural persons shall include also:
(1) individual entrepreneurs;
(2) notaries.
3. For the purposes of the Code, a dual citizen of the Republic of Armenia shall be recognised only as a citizen of the Republic of Armenia.
Article 25. Resident and non-resident natural persons of the Republic of Armenia
1. Resident natural persons of the Republic of Armenia (hereinafter referred to as “resident natural persons”) shall mean the natural persons whose actual presence in the Republic of Armenia extends for 183 or more days.
2. For the purposes of this Article, full days of actual presence in the Republic of Armenia shall include also the day of arrival in the Republic of Armenia and the day of departure from the Republic of Armenia, irrespective the number of hours of actual stay of the natural person in the Republic of Armenia.
3. Resident natural persons shall also include:
(1) natural persons the centre of vital interests whereof is located in the Republic of Armenia. For the purposes of this point, the centre of vital interests shall be the place wherein the person’s family and economic interests are concentrated. In particular, the centre of vital interests of a natural person shall be considered to be located in the Republic of Armenia where his or her house or apartment, family, the principal place of professional or other activities is located in the Republic of Armenia;
(2) natural persons engaged in state service in the Republic of Armenia and temporarily working outside the territory of the Republic of Armenia.
4. Non-resident natural persons of the Republic of Armenia (hereinafter referred to as “non-resident natural persons”) shall mean the natural persons who — pursuant to parts 1 and 3 of this Article — are not resident natural persons.
5. For the purposes of the Code, where the natural person — pursuant to parts 1 and/or 3 of this Article — is considered to be a resident as of one of the days of the tax year, this natural person shall be considered to be a resident for the whole tax year.
Article 26. Place of residence of the natural person
1. For the purposes of the Code, the place of residence of a natural person shall be the place where the natural person is record-registered as prescribed by the legislation (including, as an individual entrepreneur or a notary) and in case of absence of a place of record-registration, the place of residence of a natural person shall be the actual place of residence of the natural person.
Article 27. Permanent establishment of a non-resident organisation or a non-resident natural person
1. Permanent establishment of a non-resident organisation or of a non-resident natural person in the Republic of Armenia (hereinafter referred to as “the permanent establishment”) shall be one of the places of business in the Republic of Armenia mentioned in this part, record-registered with the tax authority as a taxpayer as prescribed by Chapter 58 of the Code through which the non-resident organisation or the non-resident natural person conducts entrepreneurial activity, irrespective of the period of performance of the activity, except for the case prescribed by part 3 of this Article:
(1) any place of production, processing, consolidation, re-packaging, packaging and/or supply of goods;
(2) any place of management;
(3) any place of geological investigation of the subsurface, exploration, preparatory works for extraction of mineral resources and/or extraction of mineral resources and/or performance of works, provision of supervision and/or monitoring services over exploration and/or extraction of mineral resources;
(4) any place of conduct of the activity related to the installation, adaptation and exploitation of gaming machines, computer networks and communication channels, amusement rides, as well as related to transport or other infrastructure;
(5) place of sale of goods in the territory of the Republic of Armenia, unless otherwise prescribed by part 3 of this Article;
(6) any place of performance of construction activities and/or construction and installation works, as well as of provision of supervision services over performance of these works;
(7) location of the representative office or the branch office, except for the representative office which exclusively performs the activity prescribed by part 4 of this Article;
(8) location of an organisation or a natural person carrying out brokerage activities in the Republic of Armenia on behalf of a non-resident organisation or a non resident natural person in accordance with the Law of the Republic of Armenia “On insurance and insurance activities”;
(9) according to Chapter 5 of the Code or pursuant to legislation of a foreign state, location of the reporting participant of the joint activity performed within the framework of the contract on joint activity concluded with a non-resident organisation or a non-resident natural person where this joint activity is carried out in the territory of the Republic of Armenia.
2. In the case of performance of works and/or provision of services in the territory of the Republic of Armenia not mentioned in part 1 of this Article a permanent establishment shall be the place where the works are performed and/or the services are provided by employees and/or other staff hired by a non-resident organisation or a non-resident natural person where such activities are carried out in the territory of the Republic of Armenia for at least 183 calendar days in a tax year, starting from the day of commencement of the entrepreneurial activity within the framework of one or more related projects.
For the purposes of this Article, related projects shall be those the contracts on which are considered to be interconnected or interdependent.
Related contracts shall mean the contracts which meet all of the following conditions:
(1) under these contracts, the same works are performed for the same tax agent or an organisation or a natural person related thereto or the same services are provided to the same tax agent or an organisation or a natural person related thereto by a non-resident organisation or a non-resident natural person or by an organisation or a natural person related thereto;
(2) the period between the day of completion of performance of works and/or provision of services prescribed by one contract and the day of entering the other contract does not exceed the uninterrupted period of twelve months.
Interdependent contracts shall mean the contracts which have been concluded between a non-resident organisation or a non-resident natural person or an organisation or a natural person related thereto and the tax agent or an organisation or a natural person related thereto in which case non-performance of obligations by the non-resident organisation or the non-resident natural person or the organisation or the natural person related thereto shall affect the implementation of other contracts by given non-resident organisation or non-resident natural person or the organisation or the natural person related thereto.
3. In case of sale of goods at exhibitions and fairs organised in the territory of the Republic of Armenia, a non-resident organisation or a non-resident natural person shall create a permanent establishment in the Republic of Armenia if the activity is carried out for more than thirty days.
4. Performance of preparatory and/or support activities carried out by a non-resident organisation or a non-resident natural person in the territory of the Republic of Armenia other than the principal activities of a non-resident organisation or a non-resident natural person shall not lead to creation of a permanent establishment if the activities are carried out for a period of less than three years. Moreover, preparatory and/or support activities must be carried out directly for the given non-resident organisation or the non-resident natural person and not for another organisation or a natural person. Preparatory and/or support activities shall include:
(1) utilisation of any place located in the Republic of Armenia exclusively for the storage and/or exhibition of the goods belonging to the non-resident organisation or the non-resident natural person;
(2) only purchase of goods at the permanent place of activity which does not involve their sale;
(3) only collection, processing and/or dissemination of information, advertisement or research of the market for goods, works and services at the permanent place of activity which shall be carried out by the non-resident if this activity does not constitute the principal activity carried out by this non-resident.
5. Notwithstanding the provisions of parts 1 and 2 of this Article, where a non-resident organisation or a non-resident natural person carries out entrepreneurial activity in the territory of the Republic of Armenia through the organisation or the natural person considered to be a dependent agent, it shall be then considered that the non-resident organisation or the non-resident natural person has a permanent establishment in the territory of the Republic of Armenia with regard to any activity which the dependent agent carries out for that non-resident organisation or non-resident natural person. For the purposes of this Article, a dependent agent shall be the organisation or the natural person who meets all of the following conditions:
(1) it is authorised — based on the contractual arrangements — to represent the interests of the non-resident organisation or the non-resident natural person in the Republic of Armenia, act on behalf and at the expense of the non-resident organisation or the non-resident natural person, act and/or carry out certain legal actions;
(2) the activity mentioned in point 1 of this part is not carried out within the scope of the activity of customs representative, specialised participant in securities market and other brokerage activities (except for insurance broker’s activity);
(3) its activity is not limited by the types of activities prescribed by part 4 of this Article.
6. Unless otherwise prescribed by part 7 of this Article, a non-resident organisation or a non-resident natural person which renders services of providing foreign labour force to an organisation or a natural person carrying out its activity in the territory of the Republic of Armenia, including to a non-resident organisation or a non-resident natural person conducting activities through the permanent establishment, no permanent establishment shall be created in the territory of the Republic of Armenia with regard to these services where:
(1) the labour force acts on behalf and in the interests of the organisation or the natural person carrying out its activity in the territory of the Republic of Armenia;
(2) the non-resident organisation or the non-resident natural person rendering services of providing foreign labour force does not bear responsibility for the results of the work performed by the labour force.
7. Where the activity carried out by a non-resident organisation or a non-resident natural person in the Republic of Armenia has the characteristics of a permanent establishment prescribed by this Article, that non-resident organisation or non-resident natural person shall be record-registered with the tax authority as a taxpayer as prescribed by Chapter 58 of the Code. Where the activity carried out by the non-resident organisation or the non-resident natural person leads to formation of two or more permanent establishments which — pursuant to this Article and Chapter 58 of the Code — must be record-registered with the tax authority, only one of the permanent establishments shall be subject to record-registration. The non-resident organisation or the non-resident natural person may — as a taxpayer and as prescribed by Chapter 58 of the Code — be record-registered with the tax authority also in the cases where the activity carried out thereby in the Republic of Armenia is not yet characterised as a permanent as establishment prescribed by this Article.
8. Where the activity carried out by a non-resident organisation or a non-resident natural person in the Republic of Armenia is characterised as a permanent establishment as prescribed by this Article but that non-resident organisation or the non-resident natural person has not been record-registered with the tax authority as a taxpayer as prescribed by Chapter 58 of the Code, the tax and fees calculation and payment regulations that are applicable with regard to a non-resident organisation having no permanent establishment or a non-resident natural person having no permanent establishment shall be applicable with regard to that non-resident organisation or the non-resident natural person.
9. Where a non-resident organisation or a non-resident natural person carries out an activity within the framework of a contract on joint activity in the territory of the Republic of Armenia, the activity of each of the parties to that contract shall lead to the formation of a permanent establishment in accordance with the provisions of this Article.
10. For the purposes of this Article, the start of performance of the activity of a non-resident organisation or a non-resident natural person in the territory of the Republic of Armenia shall be considered:
(1) the day of occurrence of any of the following:
a. conclusion of the contract on supply of goods, performance of works and/or provision of services in the territory of the Republic of Armenia;
b. obtaining a permit to perform actions on their behalf in the territory of the Republic of Armenia;
c. procurement of goods in the territory of the Republic of Armenia or import of goods into the territory of the Republic of Armenia for the purpose of sales;
d. supply of goods, performance of works and provision of services in the territory of the Republic of Armenia within the scope of the contract on joint venture;
e. procurement of works, services for the purpose of performing works and providing services in the territory of the Republic of Armenia;
(2) the day of conclusion of the first employment or civil and legal contract with the natural person in the territory of the Republic of Armenia or the day of arrival of the employee in the Republic of Armenia for the purpose of fulfilment of the conditions specified in the contracts prescribed by point 1 of this part. Moreover, the day of commencement of performance of the activity by the non-resident organisation or the non-resident natural person in the territory of the Republic of Armenia cannot be earlier than any of time limits prescribed by sub-points (a)-(e) of point 1 of this part;
(3) the day of entry into force of the document confirming the right of the non-resident organisation or the non-resident natural person to perform the types of activity specified in points 3 and 4 of part 1 of this Article.
Upon presence of some of the conditions prescribed by this Article, the day of commencement of performance of the activity within the territory of the Republic of Armenia shall be the earliest time limit specified in this Article.
(Article 27 supplemented and amended by HO-266-N of 21 December 2017)
Article 28. Official of the taxpayer (tax agent)
1. For the purposes of the Code, an official of a taxpayer (tax agent) shall be the natural person who — by virtue of law or upon the authorisation issued by a taxpayer (tax agent) in the form prescribed by the tax authority — is authorised to represent the taxpayer (tax agent) in the tax authority, except for cases prescribed by this Article.
2. The investment fund manager shall act on behalf of that investment fund in all relations related to the fund’s activities as a taxpayer (except for the pension fund).
3. Persons holding state or community positions prescribed by the Law of the Republic of Armenia “On public service” cannot act as officials of the taxpayer.
Article 29. Tax agent
1. Tax agent shall be the organisation, individual entrepreneur or notary, record-registered as taxpayer in the tax authority as prescribed by Chapter 58 of the Code, making income fees (disbursements or in-kind provision) to the taxpayers which — in accordance with the Code — shall be obliged to calculate, withhold (collect) and pay to budget of the Republic of Armenia the taxes or fees from the income of the taxpayers while making income fees (disbursements or in-kind provision) to them. For the purposes of this part, income fees (disbursements or in-kind provision) from the tax agent to the taxpayer shall include also:
(1) income payment (disbursement or in-kind provision) made by the tax agent to the person specified by the taxpayer who receives income;
(2) income payment (disbursement or in-kind provision) made by a person specified by the tax agent to the taxpayer who receives income.
2. Where pursuant to the international agreement ratified by the Republic of Armenia, the organisation is exempt from the obligation to calculate, withhold (collect) and pay to budget of the Republic of Armenia the taxes or fees from the income of the taxpayers, while making income fees (disbursements or in-kind provision) to them, this organisation can submit to the tax authority a statement in the form prescribed by the tax authority and act as a tax agent on a voluntary basis. In this case the calculation, withholding (collection) of the tax and payment thereof to the budget of the Republic of Armenia by the tax agent for the first time shall be carried out for the relevant reporting period including the day of submitting the statement.
3. For failure to perform or improper performance of their obligations, tax agents shall be held liable as prescribed by the Code.
(Article 29 supplemented by HO-338-N of 21 June 2018)
(Law HO-338-N of 21 June 2018 has a transitional provision)
Article 30. Related organisations and/or natural persons
1. For the purposes of the Code, organisations and/or natural persons shall be considered to be related where:
(1) 20 per cent and more of the equity shares (stock, share) of the authorised (share) capital of the resident commercial organisation belongs to another resident commercial organisation, an individual entrepreneur or a notary;
(2) 20 per cent and more of the equity shares (stock, share) of the authorised (share) capital of the resident commercial organisation belongs to the natural person who is not an individual entrepreneur and to whom also belongs 20 per cent and more of the equity shares (stock, share) of the authorised (share) capital of another resident commercial organisation.
2. Irrespective of the presence of the conditions specified in part 1 of this Article, organisations and/or natural persons shall be considered to be related where according to the information received from a third person (including from a state body) as defined in Chapter 70 of the Code or obtained as a result of operational and intelligence activities, organisations and/or natural persons — on grounds of acting in consent for common economic interests — are recognised as related upon the decision of the head of the tax authority as prescribed by the tax authority. For the purposes of this part, when recognising taxpayers as related, the following circumstances, in particular, shall be taken into account:
(1) volume and frequency of transactions carried out between them;
(2) sale prices and trade mark-ups of the goods purchased from one another;
(3) share in any commodity market.
3. For the purposes of transfer price formation rules prescribed by Chapter 73 of the Code, additional regulations for recognising organisations and natural persons as related shall be prescribed by that Chapter.
CHAPTER 5
PARTICIPANTS OF JOINT ACTIVITY
Article 31. Contract on joint activity
1. Organisations and individual entrepreneurs shall be entitled to carry out joint activity without establishing a new legal entity within the framework of the contract on joint activity prescribed by the Civil Code of the Republic of Armenia.
Article 32. Participants of joint activity and the reporting participant
1. The obligation of calculating and paying the taxes with regard to the joint activity (except for the income tax and profit tax, environmental tax and local taxes withheld by the tax agent), fees (except for the payment for the use of natural resources, social payment and local fees), advance fees shall be performed by the reporting participant of the joint activity.
2. Crediting of taxes in cases and in the manner prescribed by the Code with regard to the joint activity shall be made to the single account of the reporting participant or the single account for administrative acts.
3. Reporting participant of a joint activity shall mean the participant of the joint activity which has the characteristics specified in this part, according to priority:
(1) it is considered to be a resident organisation or an individual entrepreneur producing and/or importing goods subject to taxation under excise tax. Where there are more than one resident organisations or individual entrepreneurs among the participants of the joint activity which produce and/or import goods subject to taxation under excise tax, the resident organisation or the individual entrepreneur having the largest investment in the joint activity at the time of concluding the contract on joint activity shall be considered to be the reporting participant of the joint activity;
(2) it is considered to be a resident organisation or an individual entrepreneur producing and/or importing goods subject to stamping. Where there are more than one resident organisations or individual entrepreneurs among the participants of the joint activity which produce and/or import goods subject to compulsory stamping, the resident organisation or the individual entrepreneur having the largest investment in the joint activity at the time of concluding the contract on joint activity shall be considered to be the reporting participant of the joint activity;
(3) it is considered to be a resident organisation or an individual entrepreneur and has a notice or permit to engage in any of the types of activities carried out within the framework of the joint activity. Where there are more than one resident organisations or individual entrepreneurs among the participants of the joint activity which have a notice or permit to engage in any of the types of activities carried out within the framework of the joint activity, the resident organisation or the individual entrepreneur having the largest investment in the joint activity at the time of concluding the contract on joint activity shall be considered to be the reporting participant of the joint activity;
(4) it is considered to be a resident organisation paying a value added tax. Where there are more than one resident organisations among the participants of the joint activity which are payers of a value added tax, the resident organisation considered to be a value added tax payer and having the largest investment in the joint activity at the time of concluding the contract on joint activity shall be considered to be the reporting participant of the joint activity;
(5) it is considered to be a resident individual entrepreneur paying a value added tax. Where there are more than one resident individual entrepreneurs among the participants of the joint activity which are payers of a value added tax, the resident individual entrepreneur considered to be a value added tax payer and having the largest investment in the joint activity at the time of concluding the contract on joint activity shall be considered to be the reporting participant of the joint activity;
(6) it is considered to be a resident organisation. Where there are more than one resident organisations among the participants of the joint activity, the resident organisation having the largest investment in the joint activity at the time of concluding the contract on joint activity shall be considered to be the reporting participant of the joint activity;
(7) it is considered to be a resident individual entrepreneur. Where there is more than one resident individual entrepreneur among the participants of the joint activity, the resident individual entrepreneur having the largest investment in the joint activity at the time of concluding the contract on joint activity shall be considered to be the reporting participant of the joint activity.
4. In cases prescribed by points 1-7 of part 3 of this Article, where at the time of concluding the contract on joint activity there are more than one participants having the largest investment in the joint activity among the participants of the joint activity (in case of two participants — two participants having equal investment), the reporting participant of the joint activity shall be determined by participants based on mutual consent.
5. In case of alterations in the composition of the participants of a joint activity and/or changes in the investments made by the participants of the joint activity in the course of the joint activity, the reporting participant of the joint activity shall not change, except for cases prescribed by part 8 of this Article.
6. An organisation or an individual entrepreneur may be a reporting participant of the joint activity only under one contract on joint activity.
7. The reporting participant of the joint activity shall — prior to the performance of the first transaction within the framework of the joint activity — be obliged to submit to the tax authority a statement in the form prescribed by the tax authority on acting as the reporting participant of the joint activity (with a note on the consent of other participants of the joint activity), by enclosing a copy of the contract on joint activity. Upon receipt of the statement mentioned in this part, the tax authority shall, within five working days, find out whether the conditions prescribed by parts 3 and 4 of this Article for acting as the reporting participant of the joint activity are met and accordingly accept the statement or send it back to the person submitting it, stating in writing the grounds for rejecting the acceptance of the statement. Where the tax authority accepts the statement, the question of admission of the statement cannot be further reconsidered, even if it becomes clear that one of the conditions prescribed by parts 3 and 4 of this Article has not been met. Where the statement is not returned to the person having submitted it within five working days upon receipt of the statement by the tax authority, the statement shall be considered to be accepted by the tax authority from the day following the receipt thereof.
8. Where the reporting participant of the joint activity ceases to be considered to be a party to the joint activity, a new reporting participant of the joint activity shall be elected in accordance with this Article, and a relevant statement with regard to this shall be submitted to the tax authority within five working days following the election in accordance with part 7 of this Article, by enclosing a copy of the contract on joint activity. Upon receipt of the statement mentioned in this part, the tax authority shall, within five working days, find out whether the conditions prescribed by parts 3 and 4 of this Article for acting as the reporting participant of the joint activity are met and accordingly accept the statement or send it back to the person having submitted it, by stating in writing the grounds for rejecting the acceptance of the statement. Should the tax authority accept the statement, the question of admission of the statement cannot be further reconsidered, even if it becomes clear that one of the conditions prescribed by parts 3 and 4 of this Article has not been met. Where the statement is not returned to the person having submitted it within five working days upon receipt of the statement by the tax authority, the statement shall be considered to be accepted by the tax authority from the day following the receipt thereof.
9. In case of termination of the contract on joint activity as prescribed by the legislation, the reporting participant of the joint activity shall be obliged to, within five working days, submit to the tax authority a statement in the form prescribed by the tax authority.
(Article 32 amended by HO-68-N of 25 June 2019, supplemented by HO-101-N of 1 March 2023)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
CHAPTER 6
OBLIGATIONS AND RIGHTS OF TAXPAYERS (TAX AGENTS) AND THEIR OFFICIALS
Article 33. Obligations of taxpayers (tax agents) and their officials
1. A taxpayer (tax agent) and the official thereof shall be obliged to:
(1) unless otherwise prescribed by the Code, calculate independently and discharge tax liabilities in the manner and terms prescribed by the Code and the laws of the Republic of Armenia on fees, making also advance fees of taxes and/or fees in the cases and manner prescribed by the Code and the laws of the Republic of Armenia on fees;
(2) keep records prescribed by the Code and the laws of the Republic of Armenia on fees, and in cases prescribed by legislation, also maintain accounting;
(3) submit tax calculation reports to the tax authority in the manner and within time limits prescribed by the Code and the laws of the Republic of Armenia on fees;
(4) submit documents confirming the right to tax benefits;
(5) ensure retention of documents necessary for the calculation of tax base and submission of tax calculation reports, documents substantiating the amount of income received or expenses incurred, paid (withheld) taxes for a period of not less than five years starting from the reporting period which these documents refer to;
(6) provide the Armenian translations of settlement documents enclosed with the forms filled in (drawn up in) languages different from Russian and English, without notarial certification;
(7) post a statement in the form prescribed by the tax authority in a visible place at every address of its activities (and on relevant posters — at the location and/or places of effective management and operative financial management), indicating the full name of the taxpayer (in case of an individual entrepreneur — the name, surname, father’s name of the natural person), the taxpayer identification number, the address of the given place of activity and the type(s) of activity carried out at the given address;
(8) ensure working conditions for the exercise of tax control, including by furnishing the officials exercising tax control with the documents, data and other information required for the calculation and payment of a tax or making a payment, the photocopies (the costs for making the photocopies shall be incurred at the expense of the tax authority) or copies thereof. In case of failure to provide the documents, data and other information provided for by this point, the mentioned documents, information and data may not be submitted in the appeals proceedings against an administrative act through the administrative or judicial procedure as favourable factual circumstances, and the taxpayer(tax agent) shall bear the risk of negative consequences determining the outcome of the case due to their absence, unless he or she presents sufficient justifications to the effect that he or she has objectively been deprived of the opportunity to submit the mentioned evidence during the administrative proceedings. In the case provided for by this point, where tax liabilities have been imposed as a result of tax control, then while disputing the mentioned liabilities through the administrative or judicial procedure the duty (burden) of proof in regard to liabilities imposed as a result of failure by the taxpayer to provide during administrative proceedings documents, information and data that evidence in favour of him or her, may not be put on the tax authority;
(9) furnish officials performing comprehensive tax inspection as prescribed by Section 17 of the Code with a copy of the accounting records file created with a computer programme on electronic carrier (for the period included in the instruction on conducting an inspection) upon their written request;
(10) not to interfere with the performance of official duties by officials exercising tax control, comply with their lawful demands;
(11) appoint (authorise) officials substituting them to perform their duties during their absence;
(12) in case of disagreement on the contents of the acts, protocols and their drafts, statements and administrative acts drawn up as a result of tax control and refusal to sign them, make relevant notes in the mentioned documents;
(13) after being granted state registration (record-registration) and until the last day (inclusive) of submitting tax calculation reports, provided for by the Code, for the first reporting period, submit to the tax authority, and in case a mandatory requirement to submit the mentioned documents through electronic means is envisaged by the Code and in the event a contract on submitting tax calculation reports through electronic means has been concluded — complete in the section "My account" of the electronic management system of reports of the tax authority the electronic mail address whereto the notifications being made within the framework of administration carried out by the tax authority in cases prescribed by the Code shall be sent.
2. A taxpayer (tax agent) and the official thereof shall also have other obligations prescribed by the Code and the laws of the Republic of Armenia on fees.
(Article 33 amended by HO-266-N of 21 December 2017, supplemented by HO-338-N of 21 June 2018, amended by HO-80-N of 3 March 2021, supplemented by HO-595-N of 23 December 2022)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-595-N of 23 December 2022 has a transitional provision)
Article 34. Rights of taxpayers (tax agents) and their officials
1. A taxpayer (tax agent) and the official thereof shall be entitled to:
(1) apply to the tax authority as prescribed by the Code in order to receive clarification concerning the application of the provisions of legal acts regulating tax relations;
(2) represent — independently or through their authorised representative — their interests at the tax authority;
(3) enjoy the tax benefits prescribed by the Code and the laws of the Republic of Armenia;
(4) apply to the tax authority in cases and manner prescribed by the Code in order to return the sums available on the single account or the single account for administrative acts;
(5) become familiar with the acts, protocols and their drafts, statements and administrative acts drawn up as a result of tax control;
(6) submit to the tax authority explanations and clarifications on the results of calculation and payment of taxes and making fees, as well as on the results of tax control;
(7) prohibit exercise of tax control by the tax authority, not to provide documents or explanations to the officials of the tax authority if the officials exercising tax control have violated the provisions of point 12 of part 1 of Article 35 and/or point 13 of part 1 of Article 36 of the Code and/or the tax authority has violated the provisions of Articles 337-339 and/or Article 341 of the Code, by submitting a written notice to the head of the tax authority within three working days;
(8) not to comply with the demands irrelevant to the powers of the officials of the tax authority, as well as to the objectives and issues of tax control;
(9) in any stage of tax control, engage specialists, experts, auditors and/or lawyers;
(10) appeal — as prescribed by the Code and the legislation — the decisions, actions or inaction of the officials of the tax authority;
(11) claim compensation for the damages inflicted on them as a result of unlawful decisions adopted by the tax authority and the officials of the tax authority, their actions or inaction in accordance with the legislation of Republic of Armenia;
(12) apply, in cases prescribed by the Code, in order to collect a certificate of a law-abiding taxpayer.
2. A taxpayer (tax agent) and the official thereof shall also have other rights prescribed by the Code and the laws of the Republic of Armenia on fees.
(Article 34 supplemented by HO-190-N of 5 May 2021, HO-101-N of 1 March 2023)
(Law HO-190-N of 5 May 2021 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
CHAPTER 7
OBLIGATIONS AND POWERS OF THE TAX AUTHORITY
(OFFICIAL EXERCISING TAX CONTROL)
Article 35. Obligations of the tax authority (official exercising tax control)
1. Tax authority (official exercising tax control) shall:
(1) observe the legislation of the Republic of Armenia, the rights and lawful interests of taxpayers (tax agents);
(2) conduct record-registration of taxpayers;
(3) conduct awareness-raising and explanatory works on the application of the provisions of the legal acts regulating tax relations and amendments thereto, inform taxpayers (tax agents) about taxes and fees;
(4) give relevant clarifications in the prescribed manner to the written, oral or electronic questions submitted to the tax authority by taxpayers (tax agents);
(5) return to the taxpayer (tax agent) — in cases, manner and terms prescribed by the Code — the sums available on the single account or the single account for administrative acts;
(6) upon request of a taxpayer (tax agent) furnish a statement — in the manner and form prescribed by the tax authority — on the state taxes paid and state fees made in the Republic of Armenia (including in English and Russian if the taxpayer so requests);
(7) exercise control over observance of the requirements of the legal acts regulating tax relations;
(8) carry out investigation in the manner prescribed by law when detecting violations of the legal acts regulating tax relations with implication of an element of crime;
(9) keep the tax secret, provide — in cases prescribed by law and as prescribed by the Government of the Republic of Armenia — information considered to be a tax secret to the state bodies having the competence to perform works using this information;
(10) consider the appeal lodged by the taxpayer against the actions (inaction) of the tax authority or the tax officer in the manner and terms prescribed by the Code and properly notify the taxpayer of the taken decision;
(11) carry out internal investigation of the violations by tax officers;
(12) while exercising tax control:
a. comply with the requirements of the Code and the laws of the Republic of Armenia;
b. not to step beyond the scope of the objectives and issues specified in the letter of instruction for tax control;
c. introduce taxpayers (tax agent) and their officials to their rights and obligations;
d. not to interfere with the ordinary course of activity of the taxpayer (tax agent);
e. send — within three working days — a written response to any letter of enquiry of the taxpayer (tax agent) or the official thereof directly concerning tax control and the period subject to tax control, except for official clarifications on the provisions of the legal acts regulating tax relations;
(13) upon the application of a taxpayer and in case of meeting by the latter the criteria prescribed by the procedure approved by the Government — issue a certificate of a law-abiding taxpayer or refuse to issue a certificate of a law-abiding taxpayer.
2. Tax authority (official exercising tax control) shall also have other obligations prescribed by the Code and the laws of the Republic of Armenia on fees.
(Article 35 amended by HO-88-N of 19 June 2019, supplemented by HO-190-N of 5 May 2021, HO-101-N of 1 March 2023)
(Law HO-190-N of 5 May 2021 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
Article 36. Powers of the tax authority (official exercising tax control)
1. Tax authority (official exercising tax control) shall be authorised to:
(1) exercise tax control of taxpayers (tax agents) in the manner prescribed by Section 17 of the Code over observance of the requirements of the legislation which reserves powers to the tax authority as defined in the referred Section;
(2) independently calculate, re-calculate, adjust tax liabilities of the taxpayer (tax agent) in cases and in the manner prescribed by the Code;
(3) within the powers reserved to the tax authority by legislation exercise tax control, as prescribed by the Code, among the taxpayers carrying out activity subject to licensing or notification or permission without a licence or a notification or a permit (including for the utilisation of subsurface or natural resources) prescribed by law;
(4) take measurements, conduct inventory taking, test purchases as prescribed by the Code;
(4.1) carry out monitoring of the transactions of the taxpayer, other sector-specific analysis of the activity and notify the taxpayers through notifications on reduction of risks assessed on the basis thereof;
(5) keep, bear, use arms and ammunition through tax officers as prescribed by law;
(6) carry out operational and intelligence measures as prescribed by law upon existence of any information on tax offences pending, in progress or committed, as well as other facts and circumstances indicative of commitment of a tax crime;
(7) guided by operational need, use the vehicles and means of communication of organisations and natural persons, by reimbursing the expenses as prescribed by legislation;
(8) submit petitions to the authorised bodies on withdrawing or suspending the operation of licences or notifications or permits issued to organisations and natural persons;
(9) for the purpose of taking relevant measures, submit proposals to other state bodies performing inspection with regard to the abusive practices and other violations revealed while exercising tax control which entail administrative or criminal liability;
(10) file a claim with the court, act as a plaintiff or a defendant in court, issue powers of attorney for managing the case in court;
(11) for the purpose of satisfying tax liabilities, put a lien on the property of the taxpayer (tax agent) in cases and manner prescribed by the Code;
(12) provide clarifications on the application of the provisions of the legal acts regulating tax relations;
(13) while exercising tax control:
a. require only documents, data, explanations, statements, calculation reports and other information which are directly related to the objectives and issues of the tax control exercised within the scope of their competence;
b. in cases prescribed by the Code and in the manner prescribed by the Government, receive or seize documents (including in the form of originals, copies or photocopies), items (copy of the documents containing information on the given tax inspection in a physical media) or samples which are directly related to the objectives and issues of tax control. Immediately upon withdrawal of the request but no later than three years following the taking of the documents they shall be returned to the taxpayer;
c. have unfettered access to office, commercial, production, storage, archive premises and other premises and constructions used for the activities of the taxpayer in the presence of the representative of the taxpayer undergoing tax control; seal these premises and constructions when conducting inventory taking, taking measurements, and in other cases prescribed by the Code, seal cash registers, car bodies, car trunks, tanks, inspect the premises and constructions mentioned in this point, as well as of vehicles, documents and items;
d. when required, engage specialists of the taxpayer (tax agent) in tax control with the consent of a taxpayer (tax agent) or the official thereof;
e. exclusively within the scope of the objectives and issues of tax control, require from a taxpayer (tax agent) or the official thereof to conduct recognition of assets and liabilities, by also engaging relevant employees and specialists of the taxpayer (tax agent);
f. engage specialists, experts and translators as prescribed by the Code;
g. require eliminating the revealed violations of the legal acts regulating tax relations as prescribed by the Code;
h. carry out video recording.
2. Tax authority (officials exercising tax control) shall also have other powers prescribed by the Code and the laws of the Republic of Armenia on fees.
(Article 36 supplemented by HO-266-N of 21 December 2017, amended by HO-261-N of 23 March 2018, HO-68-N of 25 June 2019, amended, supplemented by HO-95-N of 28 February 2024)
(Law HO-68-N of 25 June 2019 has a transitional provision)
Article 36.1․ Notifying on documents subject to mandatory notification
1. Notification of the taxpayer of documents subject to mandatory notification by the tax authority shall be carried out electronically, by posting them on the personal page of the taxpayer in the electronic management system for submitting reports of the tax authority, which shall be confirmed by the electronic management system. Documents subject to mandatory notification shall be deemed delivered to the taxpayer from the day of posting the mentioned documents on the personal page in the electronic management system for submitting reports of the tax authority and shall enter into force on the day following the day of being deemed as delivered to the taxpayer.
2. The provisions of this Article shall not extend to the documents subject to mandatory notification the relations pertaining to whereto are regulated by the Code.
(Article 36.1 supplemented by Law HO-104-N of 28 February 2024)
(Law HO-104-N of 28 February 2024 has a transitional provision)
SECTION 3
TAX LIABILITIES, REPORTING SYSTEM AND SETTLEMENT DOCUMENTS
CHAPTER 8
TAX LIABILITYAND SETTLEMENT THEREOF
Article 37. Place of supply of goods
1. Place of supply of goods shall be the Republic of Armenia, where:
(1) at the time of supply it is located in the territory of the Republic of Armenia or the goods are exported from the Republic of Armenia;
(2) at the time of completion of the transportation (delivery) of goods by the non-resident organisation or an individual entrepreneur of another EAEU member state having no permanent establishment in the Republic of Armenia and operating electronic trading platform within the scope of electronic trading are delivered to a natural person who is not an individual entrepreneur or a notary in the territory of the Republic of Armenia.
2. Where the Republic of Armenia — in accordance with part 1 of this Article — is not considered to be the place of supply of goods, the place of supply of goods shall be considered to be outside the Republic of Armenia.
(Article 37 edited by HO-595-N of 23 December 2022)
(Law HO-595-N of 23 December 2022 has a transitional provision)
Article 38. Time of supply of goods
1. Unless otherwise prescribed by the Code or this Article, the time of supply of goods shall be the earliest point in time referred to in this part:
(1) the time when the goods are delivered to another person, except for cases where the right of ownership of goods — in accordance with the contract on supply of goods — is transferred to another person at other time which shall be considered to be the time of supply of goods, or
(2) the time when the delivered goods are received by another person, except for cases where the right of ownership of goods — in accordance with the contract on supply of goods — is transferred to another person at other time which shall be considered to be the time of supply of goods.
2. Where the right of ownership of goods is subject to state registration, the time of supply of these goods shall be the time of state registration of the right of ownership of the goods.
3. Where the contract on leasing (types thereof) provides that the right of ownership over the object of leasing may be transferred to the lessee upon expiration of the given contract or prior to its expiration, the time of supply of goods being the object of leasing shall be the last day of every month, in the amount equal to the value of the object of leasing subject to receipt during the given month, unless otherwise provided for by the second paragraph of this part. Where, under the contract on leasing (types thereof), the object of lease has been transferred to the lessee by the right of ownership prior to the last day of the month, the time of supply of goods being the object of lease shall be the time of transferring the object of lease to the lessee by the right of ownership in the amount equal to the value of the object of lease subject to receipt during the month of transferring the object of lease to the lessee by the right of ownership, unless otherwise provided for by the second paragraph of this part.
In case of receiving advance payment which is the part of the value of the object of leasing prior the time of the delivery and acceptance of the object of leasing prescribed by the contract on leasing (types thereof), the right to receive an income shall be considered to be acquired at the time of delivery and acceptance of the object of leasing in the amount of the preliminary payment being the part of the value of the object of leasing received prior to that time.
4. Within the scope of electronic trade of goods, the time of supply of goods to a natural person who is not an individual entrepreneur or to a notary by a non-resident organisation or an individual entrepreneur of another EAEU state having no permanent establishment in the Republic of Armenia, registered with the tax authority as prescribed by part 9.2 of Article 288 of the Code, shall be the last day of the quarter which includes the day of payment for the supply of goods.
(Article 38 edited by HO-321-N of 18 June 2020, supplemented by HO-595-N of 23 December 2022)
(Law HO-321-N of 18 June 2020 has a transitional provision)
(Law HO-595-N of 23 December 2022 has a transitional provision)
Article 39. Place of performance of works and/or provision of services
1. The place of performance of works and/or provision of services, except for electronic services, shall be the Republic of Armenia where:
(1) the performed works and/or the provided services are directly related to the immovable property located or being built or to be built in the territory of the Republic of Armenia. The works and/or services specified in this point shall refer, in particular, to:
a. the works and services pertaining to preparation and performance of construction works (including investigation, planning, design, installation works, designer and technical supervision);
b. works and services related to repair, restoration and landscaping of immovable property;
c. works performed and services provided by real estate agents and experts (including services of real estate valuation);
d. services involving lease (including leasing (types thereof) or use of the immovable property;
(2) performed works and/or provided services are directly related to the movable property (including vehicle) located in the territory of the Republic of Armenia, except for lease of movable property (including leasing (types thereof) services or services involving use of movable property);
(3) services in the fields of culture, art, teaching (education), science, health, physical education, tourism, leisure and sport shall be actually provided in the territory of the Republic of Armenia;
(4) an organisation which — in accordance with Chapter 4 of the Code — is considered to be located in the Republic of Armenia or a natural person the place of residence whereof — in accordance with Chapter 4 of the Code — is considered to be the Republic of Armenia or a permanent establishment accepting these works or receiving these services (including in cases where the works are directly accepted or the services are directly received by a non-resident organisation or a non-resident natural person but they are actually used (consumed) by their permanent establishments):
a. services related to issuing patents, licences, notifications, permits, logos, trademarks, copyright and other similar services;
b. works, services pertaining to the development of programmes for electronic data processing machines and databases (computing technology software tools and information products), services pertaining to the adjustment and modification thereof;
c. consulting, legal, accounting, auditing, engineering, advertising, design, marketing services, information processing (including information collection and fusion) and transfer (transmission), scientific research and experimental development works, as well as other services similar to the services mentioned in this sub-point;
d. services pertaining to the provision of works as performed by the staff (employees) of the service provider where the staff performs these works at the place of business of the service receiver;
e. services involving lease (including leasing (types thereof) services or services involving use of the movable property) of movable property (except for services involving lease of vehicles (including leasing (types of leasing) services or services involving use of vehicles, the place of provision whereof shall be determined in the manner prescribed by point 6 of this part);
f. agent services pertaining to involvement of an organisation and/or a natural person performing works and/or providing services prescribed by this point to the customer;
(5) only transport services related to transportation of cargo and/or passengers which begin and end in the territory of the Republic of Armenia shall be provided by a non-resident organisation having no permanent establishment in the Republic of Armenia;
(6) in accordance with Chapter 4 of the Code, the organisation or the permanent establishment performing works and/or providing services shall be considered to be located or the place of residence of the natural person performing works and/or providing services shall be considered to be in the Republic of Armenia, unless otherwise prescribed by points 1-4 of this part and point 1 of part 2.
2. The place of performing the activities or providing services, except for electronic services, shall be considered to be a place outside the Republic of Armenia, if:
(1) the organisation the place of location of which — in accordance with Chapter 4 of the Code — is not considered to be the Republic of Armenia or a natural person the place of residence of whom — in accordance with Chapter 4 of the Code — is not considered to be the Republic of Armenia, accepts or receives works or services referred to in point 4 of part 1 of this Article (except for the cases when the works are directly accepted or the services are directly received by non-resident organisation or non-resident natural person, but their use (consumption) is factually carried out by their permanent institution);
(2) the place of performance of works or provision of services — in accordance with part 1 and 2.1 of this Article — is not considered to be in the Republic of Armenia.
2.1. The place of providing electronic services shall be:
(1) the Republic of Armenia, where the receiver of the electronic service is the organisation the location whereof, pursuant to Chapter 4 of the Code, is deemed to be the Republic of Armenia, or the individual entrepreneur or the notary whose place of residence, pursuant to Chapter 4 of the Code, is deemed to be the Republic of Armenia;
(2) the Republic of Armenia, where the recipient of the electronic service is the permanent establishment (branch, representative office) of a non-resident organisation in the Republic of Armenia, including in the cases, where the direct recipient of the electronic services is the non-resident organisation, although the user (consumer) of such services is actually its permanent establishment (branch, representative office);
(3) the Republic of Armenia, where the recipient of the electronic service is a non-resident organisation, the permanent location (place of management) of the executive body whereof is in the Republic of Armenia and that organisation effectively carries out entrepreneurial activity and receives services in the Republic of Armenia;
(4) the given state, where the recipient of the electronic service is a natural person who is not an individual entrepreneur or a notary, provided that one of the following conditions is met:
a. the place of residence of the natural person who receives the electronic service is in the given state;
b. the location of the bank where the account is opened which is used by the natural person being the recipient of the electronic service for the purpose to pay for those services, or the location of the operator of the electronic money settlement system, through which the natural person being the recipient of the electronic service pays for the electronic services, is located in the territory of the given state;
c. the network address used by the natural person being the recipient of the electronic services is registered in the given state (refers to the area where the relevant address is);
d. the international country code of the telephone number used by the natural person for the purpose to receive the services or indicated when making payments for those services, is provided by the given state.
In the cases, where with respect to the electronic services provided to a natural person who is not an individual entrepreneur or a notary, the Republic of Armenia and other state are deemed to be the places where the service is provided pursuant to this point, the place of service shall be deemed to be the Republic of Armenia, where concurrently a larger number of conditions defined by sub-points “a”-“d” of this point are met in the Republic of Armenia than in another state, whereas in the case equal number of conditions defined by sub-points “a”-“d” of this point are concurrently met, the service provider shall determine the place of provision of electronic services independently.
3. Where several types of works are performed and/or several types of services are provided by an organisation or a natural person, and performance of one type of works or the provision of one type of services is considered to be complementary to the performance of other types of works and provision of other types of services, the place of performance of complementary works and provision of complementary services shall be the place of performance of principal works and provision of principal services.
4. For the purposes of the Code:
(1) characterisation of works or services, except for electronic services, shall be carried out in accordance with the classifier of types of economic activity applicable in the Republic of Armenia;
(2) a work or a service, except for electronic service, shall be considered similar to the work or the service mentioned in the relevant Article, part, point or sub-point of the Code where it is included in the class of classifier of types of economic activity applicable in the Republic of Armenia which includes the work or the service mentioned in the given Article, part, point or sub-point respectively.
(Article 39 amended and edited by HO-266-N of 21 December 2017, amended by HO-338-N of 21 June 2018, amended and edited by HO-68-N of 25 June 2019, amended by HO-321-N of 18 June 2020, amended, supplemented by HO-359-N of 17 November 2021, amended by HO-499-N of 4 December 2024)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-321-N of 18 June 2020 has a transitional provision)
(Article as amended by Law HO-499-N of 4 December 2024 shall enter into force on 1 January 2025 and shall be effective until 31 December 2031, according to part 1 of Article 8 of the same Law)
(Law HO-499-N of 4 December 2024 has a transitional provision)
Article 40. Time of performance of work and provision of service
1. Time of provision of public services and communal services shall be the last day of every month.
2. Time of provision of property for lease or leasing (types thereof) (unless where the contract provides that the right of ownership over the object of leasing — upon expiration of the contract or prior to its expiration — may pass on to the lessee or where the contract on leasing (types thereof) provides that the right of ownership over the object of leasing — upon expiration of the contract or prior to its expiration — may pass on to the lessee in the amounts of the interest subject to receipt by the contract on leasing (types thereof) or services involving use of property shall be the last day of the reporting period for each relevant tax type, and where the contract on provision of these services provides that provision of services shall be concluded before the last day of reporting period, the time of provision of services shall be the last day when services have been provided.
2.1. The time of provision of electronic services by a non-resident organisation not having a permanent establishment in the Republic of Armenia and registered with the tax authority in accordance with the procedure prescribed by part 9.1 of Article 288 of the Code to a natural person who is not an individual entrepreneur or a notary shall be deemed to be the last day of the quarter, which includes the date of payment and/or partial payment for the electronic service provided, subject to payment and/or partial payment conditions.
3. Time of provision of subscription-based services (in particular, services involving use of rights to computer programmes, databases, patents, licences, notifications, permits, logos, trademarks, copyright and other similar rights) shall be the last day of every month and where other time-limits (phases) for provision of services are specified in the contracts on provision of these services, the last day of these time-limits (phases) shall be considered to be the time of provision of these services.
4. Unless otherwise prescribed by the Code, the time of performance of works or provision of services not mentioned in parts 1-3 of this Article shall be the earliest point in time referred to in this part:
(1) the point in time when:
a. those performing the work pass on the right of ownership of the result of the work to those accepting the work;
b. those providing the service complete the performance of the activity in favour of those receiving the service (including based on phases prescribed by the contract);
c. those providing the service transfer the right of ownership of an intangible asset to those receiving the service;
(2) those accepting the work and/or receiving the service shall approve the settlement document issued by those performing the work and/or providing the service with regard to the transaction on performance of the work and/or provision of the service.
5. Where the time of performance of the works or provision of the services mentioned in parts 1-3 of this Article cannot be determined as prescribed by part 4 of this Article, the time of performance of these works or provision of these services shall be:
(1) the point in time when the organisation or the natural person performing the work and/or providing the service — in accordance with the contract on performance of the work and/or provision of the service — acquired the right to terminate performance of the work and/or provision of the service without returning previously received sum corresponding to the part of the work which was not performed and/or the service which was not provided (except for the sum considered to be an advance payment by law);
(2) the last day of the reporting period during which it became clear that those accepting the work and/or receiving the service have already accepted the work and/or received the service at least during that reporting period and in the case provided for by the contract on performance of the work and/or provision of the service — the work and/or the service to be provided during the given phase.
(Article 40 amended by HO-266-N of 21 December 2017, HO-321-N of 18 June 2020, supplemented by HO-359-N of 17 November 2021)
(Law HO-321-N of 18 June 2020 has a transitional provision)
Article 41. Declaring a transaction involving supply of goods, performance of works and/or provision of services as invalid
1. For the purpose of the Code, a transaction involving supply of goods, performance of works and/or provision of services shall be declared as invalid by the decision of the court.
2. The transaction declared invalid shall not entail any legal consequences (including rights and obligations) for the parties prescribed by the Code, except for the consequences of invalidity of a transaction in the cases prescribed by part 2.1 of this Article.
2.1. In case of invalidity of a transaction the legal consequences prescribed by the Code for the parties (including rights and obligations) may arise only with respect to non-returned goods, of non-returned result of work and/or non-returned outcome of service.
3. The settlement document issued previously with regard to the transaction declared invalid shall — in accordance with Article 56 of the Code — be declared as invalid.
4. In case of declaring a transaction as invalid, taxpayers considered to be parties to the transaction shall — in accordance with the relevant Sections of the Code — reflect the results of invalidation of the transaction in the relevant tax calculation reports submitted to the tax authority for the reporting period including the day of the decision of the court prescribed by part 1 of this Article.
5. Where there are no grounds for declaring invalid a transaction involving supply of goods, performance of works and/or provision of services prescribed by part 1 of this Article but the parties to the transaction have declared it invalid, then invalidation of the transaction shall not be taken into account.
(Article 41 supplemented by HO-338-N of 21 June 2018)
(Law HO-338-N of 21 June 2018 has a transitional provision)
Article 42. Adjustment of the transaction involving supply of goods, performance of works and/or provision of services
1. For the purposes of this Code, the transaction on supply of goods, performance of works and/or provision of services shall be adjusted in the following cases:
(1) the subject of the transaction is a product with an expiry date (period of storage);
(2) the subject of the transaction is a public or communal service and the written contract concluded between the parties to the transaction provides that the scope of these services can be adjusted following the end of the reporting period;
(3) the quantity, volume and/or qualitative characteristics of the product that constitutes the subject of the transaction — in accordance with the contract on the supply of goods — are checked by the buyer when accepting the goods and it becomes clear that none of them conforms to the conditions prescribed by the contract, which entails partial accepting or return of goods (or a part thereof);
(4) The goods that constitute the subject of the transaction have been supplied in a larger quantity than prescribed in the settlement document and the excess quantity of goods supplied by the buyer has been accepted;
(5) in case of such transactions on performance of works or provision of services, where the volume of performed works or provided services at the end of the transaction is bigger or less than the volume provided for in the initially issued relevant settlement document, except for the cases when:
a. works or services have already (actually) been performed or provided on conditions, referred to in the issued settlement document, conforming to the real conditions of the transaction;
b. the content of the work or service is such that it does not allow for returning back work or service deliverables;
No adjusting tax invoice or adjusting tax bill accordingly can be issued with regard to the tax invoice or tax bill, where three tax years from the tax year including the date of issue thereof have passed.
2. The adjusted transaction shall entail legal consequences, including rights and obligations prescribed by the Code for parties thereto only with regard to the part which remains after adjustment of the transaction.
3. The settlement document previously issued with regard to the adjusted transaction shall continue to be considered to be a valid document but the supplier of goods, performer of works and/or provider of services (except for taxpayers providing public services) based on the adjusted transaction shall — in the manner prescribed by Article 56 of the Code — issue a relevant adjusted settlement document prescribed by Article 55 of the Code. Taxpayers providing public services shall, in accordance with the legal acts adopted by the authorised body regulating public services, reflect the result of adjustment of the transaction in the relevant settlement document issued for supply of goods, performance of work and/or provision of service during the month including the day of the adjustment.
4. In case of adjustment of the transaction, taxpayers considered to be parties to the transaction (except for the taxpayers prescribed by part 5 of this Article) shall be obliged to do the following with the results of the adjustment of the transaction:
(1) represent them with regard to VAT and excise tax in the tax calculation reports carried out by them and submitted to the tax authority as prescribed by Articles 52 and 53 of the Code for the reporting period including the day of issuance of the adjusting settlement document where as a result of adjustment of the transaction, the amounts of tax liability and the tax subject to offset (reduction) have decreased;
(2) represent them with regard to VAT and excise tax in the tax calculation reports carried out by them and submitted to the tax authority as prescribed by Articles 52 and 53 of the Code for the reporting period including the day of performance of the principal transaction where as a result of adjustment of the transaction, the amounts of tax liability and the tax subject to offset (reduction) have increased;
(3) represent them with regard to other taxes and the payment for the use of natural resources in the tax calculation reports carried out by them and submitted to the tax authority as prescribed by Articles 52 and 53 of the Code for the reporting period including the day of performance of the principal transaction.
5. Taxpayers providing public services shall be obliged to reflect the results of the adjustment of the transaction in the tax calculation reports drawn up by them and submitted to the tax authority as prescribed by Articles 52 and 53 of the Code for the reporting period including the day when the adjustment was made.
6. Where there are no grounds for adjustment of the transaction involving supply of goods, performance of works and/or provision of services but the supplier of the goods, performer of works and/or provider of services have adjusted the transaction (issued a adjusting settlement document), the adjustment of the transaction shall not be taken into account.
(Article 42 edited by HO-266-N of 21 December 2017, supplemented and edited by HO-338-N of 21 June 2018)
(Law HO-338-N of 21 June 2018 has a transitional provision)
Article 43. Tax liability
1. Tax liability shall mean the obligation of a taxpayer to pay the sums of any type of a tax and/or fees, as well as the amounts of fines, penalties and fees for the compensation of damages calculated for violation of the provisions of the Code and/or the laws of the Republic of Armenia on fees as prescribed by the Code and/or the laws of the Republic of Armenia on fees, the VAT and/or excise tax amounts refundable from the State Budget that are reflected in the unified VAT and excise tax calculation report in excess of the amount prescribed — in the amount of overreported amounts, except for cases prescribed by part 2 of this Article.
2. For the purposes of Section 16 of the Code, tax liability shall comprise only the obligation of a taxpayer to pay taxes (except for the road tax, local taxes, as well as amounts of the liability with regard to the environmental tax for which — in accordance with Section 8 of the Code — no requirement for submitting a tax calculation report is prescribed), social payment, payment for the use of natural resources (except for the liability with regard to nature utilisation fee for which — in accordance with Section 10 of the Code — no requirement for submitting a tax calculation report is prescribed) and the mandatory fee for regulation of public services, as well as the amounts of the fines, penalties and fees for the compensation of damages calculated for the violation of the provisions of the Code and/or the laws of the Republic of Armenia on fees as prescribed by the Code and/or the laws of the Republic of Armenia on fees mentioned in this part.
(Article 43 supplemented by HO-101-N of 1 March 2023)
(Law HO-101-N of 1 March 2023 has a transitional provision)
Article 44. Emergence of tax liability
1. Tax liability shall emerge in cases prescribed by the Code or the laws of the Republic of Armenia on fees.
2. As a result of tax control no tax liability may arise where the tax liability has been imposed on the taxpayer upon completion of the third tax year immediately following the tax year in the course of which it had been committed, except for the cases prescribed by this part. When revealing violations of the requirements of Chapter 73 of the Code, no tax liability may arise, where the tax liability has been imposed on the taxpayer upon completion of the fifth tax year immediately following the tax year in the course of which it had been committed. In the event the tax control with respect to transactions concerning the information automatically provided to the tax authority by the competent authorities of foreign states (territories) (with which automatic exchange of information on financial accounts is carried out) in compliance with Chapter 80.2 of the Code or transactions with organisations registered (record-registered) in countries (geographical areas) with liberal tax systems reveals violations of requirements of the Code and laws of the Republic of Armenia on fees, no tax liability may arise, where the tax liability has been imposed on the taxpayer upon completion of the tenth tax year immediately following the tax year in the course of which it had been committed. When detecting violations of the requirements of the Sections of the Code on tax on immovable property and property tax on vehicles, no tax liabilities may arise if the given violation has been revealed upon completion of the tenth tax year immediately following the tax year in the course of which it had been committed.
3. For the purposes of part 2 of this Article, the tax year in the course of which the violation has been committed shall be the tax year including the last day of the time-limit for submitting the relevant tax calculation report comprising a violation to the tax authority as prescribed by the Code and the laws of the Republic of Armenia on fees.
4. The statute of limitations prescribed by part 2 of this Article shall be suspended where the inspection or the assessment of liabilities in any other way becomes impossible owing to the absence of the taxpayer or the official of the taxpayer or due to other circumstances emerged. The statute of limitations prescribed by part 2 of this Article shall be suspended on grounds prescribed by this part from the moment of establishment of the fact of existence of these grounds (or one of them) by the relevant official of the tax authority as prescribed by the Government. The term for the statute of limitations shall continue following termination of the grounds for suspension prescribed by this part if the tax authority or the relevant official of the tax authority knew or could have known about the termination of grounds for suspension. In accordance with this part the ultimate term for statute of limitation shall be extended by the number of working days included in the suspension period.
5. (part repealed by HO-88-N of 23 March 2022)
Within the period between the time limit prescribed by this part and the time limit prescribed by part 2 of this Article the taxpayer may submit a tax calculation report, reducing tax liabilities or increasing the amounts subject to offset (reduction), pertaining to the accounting periods prescribed by the first paragraph of this part, which may be inspected by the tax authority within one year following the day of submitting the calculation report.
6. Where the tax authority has detected inaccuracies in the tax calculation reports submitted by the taxpayers which cannot be verified by submitting verified tax calculation reports in cases and manner prescribed by the Code or where the tax liabilities of the taxpayer need to be re-assessed in cases prescribed by the Code or the laws of the Republic of Armenia on fees, these liabilities may be verified as by the Government without performing inspections (including re-inspections) among the taxpayers. Where as a result of verification of tax liabilities prescribed by this part, a tax liability arises or it entails increase in the existing tax liability, the taxpayer shall be exempt from the application of the penalty prescribed by the Code for reporting a smaller amount of tax. For the purposes of this part, no change in tax liabilities or in the amounts subject to offset (reduction) shall be carried out:
(1) where, in accordance with part 2 of this Article, the time-limits for imposing tax liabilities have expired;
(2) (point repealed by HO-88-N of 23 March 2022);
(3) With respect to tax or payment, pertaining to the inspection or examination for the duration of the inspections or examinations carried out with the taxpayers, as well as throughout the suspension period.
7. Information on taxpayers obtained in violation of the Code and other laws of the Republic of Armenia cannot serve as a basis for calculation and levying of tax liabilities.
8. No information shall serve as a basis for calculation and levying of the tax liability of the taxpayer until the taxpayer has not had the opportunity to study them and provide relevant explanations, except for the information in the form prescribed by the tax authority on the additional tax liabilities with regard to taxes and/or fees having arisen during the bankruptcy proceedings which has been submitted to the tax authority by the manager on behalf of the debtor from the moment of the suspension of the activities of the latter in accordance with the Law of the Republic of Armenia “On bankruptcy” and based on which the tax liabilities of the debtor are calculated.
(Article 44 amended and supplemented by HO-266-N of 21 December 2017, amended by HO-261-N of 23 March 2018, HO-338-N of 21 June 2018, edited, supplemented by HO-86-N of 23 March 2022, amended, supplemented, edited by HO-88-N of 23 March 2022, edited by HO-338-N of 10 September 2024)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-338-N of 10 September 2024 has a final part and transitional provisions)
Article 45. Termination of tax liability
1. Tax liability shall terminate:
(1) where it has been satisfied;
(2) where a tax benefit in the form of exemption from or reduction in the tax liability is prescribed in the amount of the exempted or reduced liability;
(3) where the case on bankruptcy of an organisation or an individual entrepreneur or a notary is terminated with a court judgment having entered into legal force and the organisation is deemed to be liquidated, and the activities of the individual entrepreneur or notary are deemed terminated;
(4) where the bankruptcy case of the natural person who is not an individual entrepreneur or notary is closed by a court judgment having entered into legal force, and that judgment releases the natural person from all liabilities, except for the cases provided for by the Law of the Republic of Armenia “On bankruptcy”;
(5) in case of death of a natural person, except for cases prescribed by parts 1 and 2 of Article 51 of the Code;
(6) in cases prescribed by the laws of the Republic of Armenia on fees;
(7) where 5 years have passed from the deadline, established by the Code and laws of the Republic of Armenia on fees, for satisfying by a natural person who is not an individual entrepreneur or a notary the tax liabilities not exceeding AMD two million;
(8) where 7 years have passed from the deadline, established by the Code and the laws of the Republic of Armenia on fees, for satisfying by an organisation or an individual entrepreneur or a notary the tax liabilities not exceeding AMD two million;
(9) where the deceased natural person or the natural person declared as deceased by a judgment of the court does not have any heirs or the heir has repudiated the inheritance and 5 years have passed from the death of a natural person.
2. (part repealed by HO-331-N of 25 October 2023)
3. The tax authority shall establish the procedure for record-keeping of tax liabilities and cancelling the record-keeping of tax liabilities.
(Article 45 amended by HO-266-N of 21 December 2017, HO-261-N of 23 March 2018, edited, supplemented, amended by HO-331-N of 25 October 2023)
(Law HO-331-N of 25 October 2023 has a transitional provision)
Article 46. Discharging (satisfying) the tax liability
1. Discharging (satisfying) tax liability through the single account or the single account for administrative acts shall mean the crediting of the tax subject to payment and calculated in accordance with the Code, as well as the sums of fines and/or penalties from the single account or the single account for administrative acts to the treasury account of the state budget keeping records of the liability with regard to the relevant tax.
2. Discharging (satisfying) tax liability (except for local taxes) not through the single account or the single account for administrative acts shall mean the action when the tax subject to payment, as well as the sums of fines and/or penalties calculated in accordance with the Code:
(1) are paid to the treasury account of the state budget keeping records of the liability with regard to the relevant tax;
(2) are offset from the treasury account of the state budget keeping records of the liability with regard to other tax, which is not settled through the single account or the single account for administrative acts, to the treasury account of the state budget keeping records of the liability with regard to the given tax.
(3) (point repealed by HO-101-N of 1 March 2023)
3. Discharging (satisfying) tax liability with regard to local taxes shall be the payment of the tax due calculated in accordance with the Code, as well as the payment of the sums of fines and/or penalties to the treasury account of the local budget keeping records of the liability with regard to the relevant tax.
4. Where prescribed by the Code, the duty to discharge tax liability may be placed on a tax agent, a trust manager, the reporting participant of the joint activity, the commission agent, an agent acting on his or her behalf when carrying out the transaction, as well as joint liability may be prescribed with regard to discharging tax liabilities.
5. Tax liabilities shall be satisfied before the time-limits prescribed by the Code and the laws of the Republic of Armenia on fees, except for cases prescribed by the Code and the laws of the Republic of Armenia on fees.
6. Where the tax liability is not discharged or is partly discharged before the time-limits prescribed by the Code and the laws of the Republic of Armenia on fees, the tax authority and in case of local taxes and local fees — the local self-government body shall be authorised to undertake measures securing the discharge of tax liabilities as prescribed by Section 19 of the Code.
(Article 46 supplemented by HO-266-N of 21 December 2017, supplemented, amended by HO-101-N of 1 March 2023)
(Law HO-101-N of 1 March 2023 has a transitional provision)
Article 47. Discharging tax liabilities in case of liquidation of the organisation
1. Discharging tax liabilities of an organisation undergoing liquidation shall rest with the Liquidation Committee of the organisation on the account of the financial resources of the organisation, including the financial resources generated from the sale of property. The Liquidation Committee shall be obliged to include the tax liability in the liquidation balance sheet.
2. In cases prescribed by point 1 of part 3 of Article 54 of the Code, the tax liabilities having arisen based on the submitted tax calculation reports shall be satisfied before the due date prescribed by the Code, but not later than the day of liquidation of the organisation.
3. (part repealed by HO-101-N of 1 March 2023)
(Article 47 amended by HO-266-N of 21 December 2017, HO-101-N of 1 March 2023)
(Law HO-101-N of 1 March 2023 has a transitional provision)
Article 48. Discharging tax liabilities in case of withdrawing the individual entrepreneur from state record registry
1. An individual entrepreneur shall be entitled to submit an application to the tax authority on undergoing a comprehensive tax inspection prior to submitting an application on being removed from state record-registration.
2. Where a natural person has not applied to the tax authority on undergoing a comprehensive tax inspection as prescribed by the Code prior to being removed from state record-registration, the tax authority shall be entitled to perform a comprehensive tax inspection of the natural person as prescribed by the Code in the course of three years following the day of removal of the individual entrepreneur from state record-registration.
(Article 48 amended by HO-266-N of 21 December 2017)
Article 49. Discharging tax liabilities in case of reorganisation of the organisation
1. Tax liabilities of a reorganised organisation shall be satisfied by the legal successor (legal successors) of the organisation as prescribed by this Article.
2. In case of consolidation of organisations, the legal successor responsible for discharging tax liabilities shall be the organisation established as a result of consolidation of these organisations.
3. In case of absorption of organisations, the legal successor responsible for discharging tax liabilities shall be the organisation which has been affiliated with by the other organisation.
4. In case of division of an organisation, the legal successor responsible for the discharge of tax liabilities shall be the organisations established as a result of the breakdown in accordance with the division balance sheet.
5. In case of separation of one or more organisations from the organisation, the tax liabilities of the reorganised legal person shall pass on to each of the separate organisations in accordance with the division balance sheet.
6. In case of restructuring of an organisation, the legal successor responsible for satisfying tax liabilities shall be the organisation established as a result of the reorganisation of the organisation.
Article 50. Discharge of tax liabilities in case of joint activity
1. The participants of the joint activity shall bear joint responsibility for the discharge of tax liabilities with regard to the joint activity.
2. In case of full discharge of tax liabilities with regard to the joint activity by the reporting participant of the joint activity or one of the participants of the joint activity, the tax liabilities with regard to this activity shall be considered to be discharged by all the other participants of the joint activity.
Article 51. Discharge of tax liabilities and return of taxes in case of death of the natural person or declaring the natural person as dead by the judgment of the court
1. In case of death of the natural person or declaring the natural person as dead by the judgment of the court, the tax liabilities (except for the tax liabilities with regard to the tax on immovable property and/or property tax on vehicles) existing as of the day of the death shall be discharged by his or her heir (in case of more than one heirs, the tax liabilities shall be discharged by the heirs proportionally to the market value of the inherited property which constitutes the object of the entrepreneurial activity), except for cases prescribed by part 2 of this Article. In case of death of the natural person or declaring the natural person as dead by the judgment of the court, his or her outstanding tax liabilities with regard to the tax on immovable property and/or property tax on vehicles as of the day of death shall be discharged as prescribed by Sections 11 and 12 of the Code respectively.
2. Where the heir of the deceased natural person or the natural person declared dead by the judgment of the court repudiates the inheritance of the property which constitutes the object of the entrepreneurial activity, he or she shall be exempt from discharge of tax liabilities.
3. The heir of the deceased natural person or the natural person declared dead by the judgment of the court may apply to the tax authority of the place of record-registration of the deceased natural person or the natural person declared dead by the judgment of the court or to the relevant local self-government body keeping records of the taxable objects taxed under local taxes to find out the amount of the tax liability delegated to him or her, and these bodies shall be obliged to provide information on the amount of the tax liabilities delegated to the heir within five working days following the receipt of the application. The amount of tax liability referred to in the information submitted by the tax authority cannot be changed, if the information has been submitted as a result of an inspection carried out in the manner prescribed by the Code.
4. (part repealed by HO-266-N of 21 December 2017)
5. Notaries shall be obliged to provide information to the tax authority on the property inherited by the heir (heirs) of the deceased natural person or the natural person declared dead by the judgment of the court which constitutes the object of the entrepreneurial activity and assuming of tax liability by the heir (heirs), which was revealed within the framework of the notary services provided by them during the reporting quarter for every reporting quarter before or on the 20th day of the month following the given reporting quarter as prescribed by the Government.
6. The heir of the deceased natural person or the natural person declared dead by the judgment of the court shall be obliged to discharge the tax liability delegated to him or her based on the administrative act drawn up as prescribed by the Law of the Republic of Armenia “On fundamentals of administrative action and administrative proceedings” prior to or on the twentieth day of the third month following the month including the day of accepting the inheritance.
7. In case of death of the natural person or declaring the natural person as dead by the judgment of the court, the debit amounts of the tax available on the personal account as of the day of the death, the remaining balance of the single account or the single account for administrative acts, as well as the overpayments shall be subject to return to the heir (in case of more than one heirs, proportionally to the market value of the inherited property which constitutes the object of the entrepreneurial activity).
8. Where the heir of the deceased natural person or the natural person declared dead by the judgment of the court undertakes — in accordance with part 1 of this Article — the obligation to discharge the outstanding tax liabilities of the deceased natural person or the natural person declared dead by the judgment of the court, the sums prescribed by part 7 of this Article shall be subject to return only if the tax liabilities have been discharged in full.
9. The heir of the deceased natural person or the natural person declared dead by the judgment of the court can apply to the tax authority of the place of record-registration of the deceased natural person or the natural person declared dead by the judgment of the court or to the relevant local self-government body keeping records of the taxable objects taxed under local taxes to find out the amount of the tax sums prescribed by part 7 of this Article, and these bodies shall be obliged to provide information on the amount of these tax sums within five working days following the receipt of the application.
10. The tax amounts prescribed by part 7 of this Article shall be allocated to the heir of the deceased natural person or the natural person declared dead by the judgment of the court before the twentieth day of the third month following the month including the day of acceptance of the inheritance unless otherwise prescribed by part 8 of this Article.
11. The tax liabilities prescribed by part 1 of this Article shall be discharged by the heir of the deceased natural person or the natural person declared dead by the judgment of the court and the tax amounts prescribed by part 7 of this Article shall be allocated to the heir of the deceased natural person or the natural person declared dead by the judgment of the court as prescribed by the tax authority.
(Article 51 amended and supplemented by HO-266-N of 21 December 2017, amended by HO-261-N of 23 March 2018, HO-338-N of 21 June 2018, supplemented by HO-101-N of 1 March 2023)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
CHAPTER 9
TAX CALCULATION REPORTS
Article 52. Tax calculation report and drawing up thereof
1. Tax calculation report shall be the written information submitted by the taxpayer (in cases prescribed by the Code, the tax agent, trustee, reporting participant of a joint activity, commission agent, agent acting on behalf thereof in executing the transaction, in case of minor natural persons, also the parent or guardian or curator) to the tax authority within the reporting period or with regard to any transaction or operation considered a taxable object prescribed by the Code and in regard to the tax or fee calculated against it.
2. Tax calculation reports shall mandatorily be completed with the following data:
(1) full name of the taxpayer;
(2) location of the taxpayer;
(3) taxpayer identification number, and in case of value added taxpayers, also the taxpayer identification number of VAT payer;
(4) reporting period or the day of executing the transaction or operation considered to be taxable object prescribed by the Code for which the tax calculation report is submitted;
(5) signature of the taxpayer (official of the taxpayer) or the authorised person of the taxpayer;
(6) other data prescribed by the procedure for completion of tax calculation.
2.1. The tax authority may automatically complete the tax calculation reports in advance, based on the data (including those prescribed by Article 350 of the Code) available in its database.
3. Tax calculation reports (including the verified ones) submitted for the joint activity by the reporting participant of a joint activity shall reflect the indicators (results) relating to the joint activity as well as expressly relating to the reporting participant of a joint activity. For the purpose of verifying the tax liabilities with regard to the joint activity, where necessary, and ensuring the collection thereof, the tax authority of the record-registration of the reporting participant of a joint activity shall have the right to request, in writing, the reporting participant of a joint activity to submit additional written information on indicators (results) relating to the joint activity included in the general indicators reflected in the tax calculation reports submitted thereby. The reporting participant of a joint activity shall be obliged to submit the information prescribed by this part within five working days after receiving the relevant request from the tax authority.
4. Forms of tax calculation reports and the procedure for completing them shall be prescribed by the tax authority (including together with those agencies, where a requirement to submit the tax calculation report also to other agencies in the cases prescribed by the Code is laid down). Irrespective of the data prescribed by part 2 of this Article and subject to mandatory completion in the tax calculation report, personal data with regard to the natural person, including name, surname, passport data, number of public services, address of the place of residence or place of record-registration, phone number, information about family members shall be subject to mandatory completion in the tax calculation report form, if so envisaged.
(Article 52 supplemented by HO-266-N of 21 December 2017, amended and supplemented by HO-593-N of 23 December 2022)
(Law HO-593-N of 23 December 2022 has a transitional provision)
Article 53. Submission of tax calculation report
1. Taxpayer (in cases prescribed by the Code, the tax agent, trustee, reporting participant of a joint activity, commission agent, agent acting on behalf thereof in executing the transaction, in case of minor natural persons, also the parent or guardian or curator) shall submit the tax calculation reports to the tax authority following the end of the reporting period within the time limits prescribed by the Code and laws of the Republic of Armenia on fees, except for the cases prescribed by parts 3, 4 and 5 of this Article.
2. Tax calculation reports submitted to the tax authority for the given reporting period before the end of the reporting period shall be considered not submitted, except for the cases prescribed by parts 3 and 4 of this Article.
3. Tax calculation may be submitted before the end of the reporting period, where:
(1) the organisation is in the process of liquidation (a separate subdivision of the organisation or of the establishment is in the process of removal from state record-registration);
(2) the individual entrepreneur is removed from state record-registration;
(3) notary is dismissed from the position.
4. (part repealed by HO-68-N of 25 June 2019)
5. Tax calculation reports shall be submitted to the tax authority in electronic form, except for the following:
(1) tax calculation reports that contain information considered a secret and/or subject to limited use. The tax calculation reports referred to in this point may be submitted to the tax authority also in paper form;
(2) cases prescribed by the Code or the Government when tax calculation reports may be submitted also in paper form.
6. Where the soft copy of the tax calculation report is not posted on the website of the tax authority until the last day of the relevant reporting period, with respect to the application of sanctions prescribed by the Code for late submission of the tax calculation report, the deadline, prescribed by the Code or laws of the Republic of Armenia on fees, for submitting relevant tax calculation report shall be extended by the number of days covering the last day of the relevant reporting period until the day of posting the soft copy of the tax calculation report on the website of the tax authority.
7. The day of submission of the tax calculation report in electronic form shall be considered the day specified in the relevant electronic notice confirming the receipt and registration of the tax calculation report automatically submitted to the taxpayer by the electronic system of the tax authority for accepting tax calculation reports, and the day of submitting the tax calculation report to the tax authority in paper form shall be considered the day specified in the date-stamp impression of the day the post office received the tax calculation report.
8. Where the taxpayer (in cases prescribed by the Code, the tax agent, trustee, reporting participant of a joint activity, commission agent, agent acting on behalf thereof in executing the transaction, in case of minor natural persons, also the parent or the guardian or curator) shall submit a statement to the tax authority in the form approved by the tax authority:
(1) on terminating activities starting from any day for an indefinite period of time, the taxpayer shall not submit tax calculation reports (including “zero”) to the tax authority for the entire reporting periods prescribed by the Code or by the laws of the Republic of Armenia on fees for any type of tax or fee and included in the time period between the day of terminating the activities indicated in the statement (but not earlier than the day of submitting the statement on terminating the activities) and the day of resuming the activities indicated in the statement on resuming the activities submitted in the form approved by the tax authority (but not earlier than the day of submitting the statement on resuming the activities), except for the tax calculation reports prescribed by part 9 of this Article;
(2) on terminating activities starting from any day for a certain period of time, the taxpayer shall not submit tax calculation reports (including “zero”) to the tax authority for the entire reporting periods prescribed by the Code or the laws of the Republic of Armenia on fees for any type of tax or fee and included in the time period between the day of terminating the activities indicated in the statement (but not earlier than the day of submitting the statement on terminating the activities) and the day of resuming the activities indicted in the statement on resuming the activities submitted in the form approved by the tax authority (but not earlier than the day of submitting the statement on resuming the activities), except for the tax calculation reports prescribed by part 9 of this Article.
For the purposes of this part:
(1) in case the activities are terminated for a certain period of time, the activities of the taxpayer shall be considered to be resumed from the day of resuming the activities indicated in the statement of the taxpayer, in case the activities are terminated for an indefinite period of time, the activities of the taxpayer shall be considered to be resumed from the day of resuming the activities indicated in the statement of the taxpayer on resuming the activities;
(2) in case the taxpayer resumes the activities within the time period of termination of the activities and does not submit a relevant statement thereon, the activities of the taxpayer are considered to be resumed from the day of their actual resumption.
8.1.
9. For the purposes of part 8 of this Article, the following shall not be considered to be resumption of the activities:
(1) the calculation and payment by the taxpayer of the salary and other equivalent fees, as well as of temporary incapacity and maternity benefits for the employees thereof as prescribed by the legislation (including for the period of forced idleness or leave for taking care of a child under the age of three), in which case the taxpayer, as a tax agent, shall submit a monthly summary calculation report of the income tax and social contribution;
(2) incurring administrative expenses, including paying rentals and interests or paying for subscription-based services (in particular, public services or utility services or services of using computer programmes, databases, patents, licenses, notices, authorisations, logos, trademarks, copyrights and other similar rights), in which case the taxpayer shall submit to the tax authority the tax calculation reports necessary for the declaration of expenses referred to in this point and prescribed by the Code;
(3) receiving income from the accrued interests against the monetary funds deposited or available on the current account, in which case the taxpayer shall submit to the tax authority the tax calculation reports necessary for the declaration of the incomes referred in this point and prescribed by the Code;
(4) submitting a statement on being considered a VAT payer and being record-registered as a VAT payer or submitting a statement on being a turnover taxpayer or a statement on being considered as an entity of micro-entrepreneurship;
(5) paying taxes, fees or other fees prescribed by the legislation of the Republic of Armenia;
(6) making fees to partner taxpayers and/or receiving fees therefrom, ratifying (approving) the settlement documents issued by the partner taxpayers in respect of expenses prescribed by point 2 of this part, as well as issued in respect of all expenses incurred in the reporting periods prior to the termination of the activities;
(7) submitting calculation reports or verified tax calculation reports;
(8) performing audit (including audit of financial statements) at the taxpayer.
(9) (point repealed by HO-302-N of 16 June 2020)
10. Except for the cases of submission of tax calculation reports increasing the tax liability and/or decreasing the amount subject to offset (reduction) prescribed by part 10.1 of this Article, tax calculation reports may not be submitted in cases where the tax calculation report relates to the following:
(1) the reporting period that has already been inspected by the tax authority (and in cases prescribed by the Code, where tax calculation reports are submitted to other authorised bodies — by that body) in respect of the given type of tax, except for tax calculation reports on transfer pricing;
(2) (point repealed by HO-88-N of 23 March 2022)
(3) the reporting period, since the last day of which three years have passed, and in case of calculation of transfer pricing — five years;
(4) the reporting period, which has already been examined by the tax authority for the given type of the tax as prescribed by Article 349.1 o f the Code.
10.1. Irrespective of the restrictions prescribed by parts 10 and 11 of this Article, tax calculation reports increasing the tax liability and/or decreasing the amount subject to offset (reduction) (including the verified tax calculation reports) are submitted in accordance with the procedure prescribed by the tax authority.
11. Tax calculation reports in respect of value added tax may not be submitted also in cases (in case of submitting a unified calculation report of VAT and excise tax, the calculation report in respect of VAT shall not be taken into account) when the tax calculation report relates to the following:
(1) the reporting period that has already been inspected by the tax authority with a view to examining the substantiation of the VAT refundable amounts to be credited to the single account;
(2) (point repealed by HO-88-N of 23 March 2022)
(3) the reporting period based on the results of which the crediting to the single account of accrued refundable amounts of the value added tax has been performed in accordance with part 10 of Article 348 of the Code under a simplified procedure established by the Government.
12. Tax calculation reports with respect to excise tax may not be submitted also (in case of submitting a unified VAT and excise tax calculation report, the given calculation report shall not be taken into account with respect to VAT) when the tax calculation report refers to the reporting period that has already been inspected by the tax authority with a view to examining the substantiation of the excise tax refundable amounts subject to crediting to the single account.
(Article 53 amended, edited and supplemented by HO-266-N of 21 December 2017, amended by HO-261-N of 23 March 2018, amended, edited and supplemented by HO-338-N of 21 June 2018, supplemented and amended by HO-68-N of 25 June 2019, amended by HO-302-N of 16 June 2020, supplemented by HO-244-N of 26 May 2021, amended, supplemented by HO-86-N of 23 March 2022, edited, amended, supplemented by HO-88-N of 23 March 2022 , supplemented by HO-55-N of 4 March 2022, amended by HO-376-N of 24 October 2024, amended, supplemented by HO-101-N of 1 March 2023)
(Article as amended by Law HO-342-N of 11 September 2024 shall enter into force on 1 January 2026)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-244-N of 26 May 2021 has a transitional provision)
(Law HO-88-N of 23 March 2022 has a transitional provision)
(Law HO-302-N of 16 June 2020 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
(Law HO-376-N of 24 October 2024 has a transitional provision)
Article 54. Verification of the tax calculation report
1. In case the taxpayer (in cases prescribed by the Code, the tax agent, trustee, reporting participant of a joint activity, commission agent, agent acting on behalf of him or her in executing the transaction, in case of minor natural persons, also the parent or guardian or curator) detects errors in tax calculation reports submitted to the tax authority, verified tax calculation reports may be submitted. Verified tax calculation reports on transfer pricing may be submitted in the cases prescribed by Article 374 of the Code.
2. For the purposes of the Code, the first of more than one tax calculation reports submitted after the end of the reporting period shall be considered to be a tax calculation report submitted for the reporting period, and the rest — verified tax calculation reports. The first of tax declarations of imports or tax declarations of export submitted with respect to the given operation of export or import shall be considered to be a declaration submitted for the given operation, and the rest — verified declarations.
3. In case of liquidation of the organisation (for separated subdivisions and establishments of the organisation, removal from the state record-registration), the individual entrepreneur is removed from state record-registration or the notary is dismissed from the position:
(1) tax calculation reports submitted to the tax authority before the end of the reporting periods shall be considered to be tax calculation reports submitted for the reporting periods, where by the end of the reporting periods following the submission thereof the organisation or the individual entrepreneur or the notary does not carry out any transaction or operation;
(2) in case the organisation or the individual entrepreneur or the notary carries out any transaction or operation by the end of the reporting period following the submission of tax calculation reports prescribed by point 1 of this part, after the end of the reporting periods the new tax calculation reports submitted for these reporting periods shall be considered to be verified tax calculation reports.
4. Where the submission of a verified tax calculation report gives rise to tax liability or increases the previous tax liability, the taxpayer shall be exempt from the imposition of the fine prescribed by the Code for understatement of the amount of tax.
5. Limitations on submission of tax calculation reports prescribed by parts 10-12 of Article 53 of the Code shall also extend to the cases of submitting verified tax calculation reports.
(Article 54 supplemented by HO-266-N of 21 December 2017, amended by HO-338-N of 21 June 2018, HO-68-N of 25 June 2019, edited by HO-86-N of 23 March 2022, amended by HO-88-N of 23 March 2022, HO-101-N of 1 March 2023)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
CHAPTER 10
SETTLEMENT DOCUMENTS
Article 55. Settlement documents and drawing up thereof
1. Settlement document shall be a document complying with the requirements prescribed by this Code and issued by the taxpayer which substantiates the following:
(1) acquisition of the right to receive income from the supply of goods, performance of work and/or provision of service. For the purposes of this point, the right to receive income in the cases prescribed by the Code shall be considered to be acquired irrespective of the fact of issuance of the settlement document;
(2) recognition of expenses for the purchase of goods, the receipt of work and/or service;
(3) supply of goods to a foreign citizen or stateless person;
(4) transportation of goods.
2. For the purpose of documenting the transactions and operations prescribed by part 1 of this Article, the following settlement documents shall apply:
(1) tax invoice;
(2) adjusting tax invoice;
(3) tax bill;
(4) adjusting tax bill;
(4.1) act of delivery and acceptance of the object of leasing;
(5) cash register receipts (including electronic receipts of the electronic cash register);
(6) tax invoice of VAT refund;
(7) consignment note for the transportation of the goods (hereinafter referred to as the “consignment note”).
3. In part 2 of this Article:
(1) settlement documents prescribed by points 1-4 shall be applied for documenting the acquisition of the right to receive income from the supply of goods, performance of work and/or provision of service, recognition of expenses for the acquisition of goods, receipt of work and/or service, and in cases prescribed by the Code, also the reduction in the tax amount, as well as the transportation of acquired goods;
(2) settlement documents prescribed by point 5 shall be applied for documenting the acquisition of the right to receive income from the supply of goods, performance of work and/or provision of service, and in the case it contains the taxpayer identification number (TIN) of organisation, individual entrepreneur or notary having acquired the goods, having accepted the works and/or having received the services on the receipt, in addition to the prescribed mandatory information (data) — also for documenting the recognition of expenses for acquiring goods, accepting works and/or receiving services, as well as for documenting the delivery or transportation of the goods;
(3) settlement documents prescribed by point 6 shall be applied for documenting the acquisition of the right to VAT refund;
(4) settlement documents prescribed by point 7 shall be applied for documenting the transportation of goods;
(5) settlement document prescribed by point 4.1 shall be applied for documenting the delivery and acceptance of the object of leasing.
4. The tax invoice or adjusting tax invoice shall mandatorily include the following:
(1) series and number of the settlement document;
(2) issue date of the settlement document;
(3) date of supply of goods, date of completing the performance of work (including in accordance with the stages provided for by the contract) and/or date of completing the provision of service (in accordance with the stages provided for by the contract);
(4) rate and amount of the value added tax, in a separate column or line;
(5) amount of excise tax, in a separate column or line (in case of supply of goods subject to taxation by excise tax);
(6) amount of nature protection tax, in a separate column or line (only in case of issuing settlement documents by dealers-importers and dealers-producers of goods causing damage to the environment);
(7) nomenclature and quantity of goods and/or types and volume of the work and service being the subject of a transaction;
(7.1)
(7.2)
(8) price, total value of the unit of goods being the subject of a transaction, trade discount, where available (including public trade discount) and/or tariff, trade discount, where available, (including public trade discount) and total cost of work, service;
(9) for those supplying goods, performing work and/or providing service:
a. taxpayer identification number, and in case of value added taxpayers, also taxpayer identification number of the VAT payer;
b. full name of the organisation, addresses of location and place of business, and in case of supplying goods, address of the place of delivery or data of the point of delivery, name, surname and signature of the official;
c. name, surname, address of the place of residence of the natural person, series and/or number of the passport (or other identification documents), and in case of individual entrepreneur, also address of the place of business, indication of “individual entrepreneur” or “IE”, address of the place of delivery or data of the point of delivery, name, surname and signature of the official;
(10) for those acquiring goods, accepting work and/or receiving service:
a. taxpayer identification number, and in case of value added taxpayer, also taxpayer identification number of the VAT payer;
b. full name of the organisation, addresses of location and place of business, and in case of supplying goods, address of the place of destination of goods, name, surname and signature of the official;
c. name, surname, address of the place of residence of the natural person, series and/or number of the passport (or other identification documents), and in case of an individual entrepreneur, also address of the place of business, indication of “individual entrepreneur” or “IE”, address of the place of destination of goods (except for the cases where the goods are handed over to the purchaser in the place of delivery), name, surname and signature of the official.
(11) CN FEA code at 10-digit level, as well as the quantitative unit of measurement of goods for tracing purposes, in accordance with the Agreement “On mechanism of traceability of goods imported into customs territory of Eurasian Economic Union” concluded on 29 May 2019, with respect to goods subject to tracing in the customs territory of the Eurasian Economic Union.
5. The tax invoice and the adjusting tax invoice shall mandatorily include the data subject to mandatory inclusion in the tax invoice or adjusting tax invoice referred to in part 4 of this Article, except for the data prescribed by point 4 of part 4 of this Article.
5.1. The act of delivery and acceptance of the object of leasing shall mandatorily include։
(1) series and number of the settlement document;
(2) issue date of the settlement document;
(3) date of delivery and acceptance of the object of leasing;
(4) rate and amount of the value added tax, in a separate column or line (in case of delivering goods subject to value added tax);
(5) nomenclature, quantity, price of the unit and total value of the object of leasing;
(6) the following data on the lessor:
a. taxpayer identification number, and in case of value added taxpayer — also taxpayer identification number of the VAT payer;
b. full name of the organisation, addresses of location and place of business, address of the place of delivery or transfer of the object of leasing, name, surname and signature of the official;
(7) the following data on the lessee:
a. taxpayer identification number, and in case of value added taxpayers — also taxpayer identification number of the VAT payer;
b. full name of the organisation, addresses of location and place of business, address of the place of destination of the object of leasing, name, surname and signature of the official;
c. name, surname, address of the place of residence of the natural person, series and/or number of the passport (or other identification documents), and in case of an individual entrepreneur — also address of the place of business, indication of “individual entrepreneur” or “IE”, address of the place of destination of the object of leasing (except for the cases where the object of leasing is handed over in the place of delivery or transfer), name, surname and signature of the official.
6. The scope of data mandatorily included in the tax invoice of VAT refund shall be prescribed by the Government.
7. The consignment note shall mandatorily include the data subject to mandatory inclusion in the tax invoice or the adjusting tax invoice referred to in points 1 and 2 of part 4 of this Article, and in lieu of the data prescribed by points 3, 7 and 9 of part 4 of this Article, the following shall be included respectively:
(1) date of transportation of goods;
(2) nomenclature and quantity of the goods transported;
(3) for those transporting goods:
a. taxpayer identification number, and in case of value added taxpayer, also taxpayer identification number of VAT payer;
b. full name, addresses of location of the organisation, address of the place of delivery or date of the point of delivery, address of the place of destination of goods transported, name, surname and signature of the official;
c. name, surname, address of the place of residence of the individual entrepreneur, series and/or number of the passport (or other identification documents), address of the place of business, indication of “individual entrepreneur” or “IE”, address of the place of destination of transported goods, name, surname and signature of the official.
8. Settlement documents referred to in part 2 of this Article may — except for the data referred to in parts 4-7 of this Article — also include other data at the discretion of the taxpayers issuing and/or receiving these settlement documents.
9. In cases prescribed by part 7 of Article 56 of the Code the tax invoice, and in cases prescribed by the Code, also the adjusting tax invoice issued by the resident organisation of the Republic of Armenia, resident natural person and permanent establishment of the Republic of Armenia shall indicate — as the identification number of the taxpayer supplying goods, performing work and/or providing service and taxpayer identification number of a VAT payer — the taxpayer identification number of the resident organisation of the Republic of Armenia, resident natural person or permanent establishment of the Republic of Armenia and the taxpayer identification number of the VAT payer.
10. Where the goods are acquired, the work is accepted and/or the service is received from a non-resident organisation having no permanent establishment in the Republic of Armenia or a non-resident natural person having no permanent establishment in the Republic of Armenia, in case of absence of certain data referred to in parts 4-7 of this Article in the settlement documents issued with respect to these transactions and referred to in points 3 and 4 of part 2 of this Article the settlement documents shall be considered to be complying with the requirements prescribed by this Article where:
(1) there is a written contract concluded between the parties executing a transaction as prescribed by the legislation of the Republic of Armenia wherein all the data the settlement document lacks are specified and the settlement document makes reference to that contract; or
(2) the transaction is executed on the basis of the written power of attorney issued by the party executing the transaction wherein all the data the settlement document lacks are specified.
11. (part repealed by HO-280-N of 1 June 2020)
12. Expenses for transactions and operations not prescribed by point 2 of part 1 of this Article (including calculating the salary of the employees, paying state and local taxes, duties, fees and other fees not prescribed by the Code), as well as for services provided by payment and settlement system or credit organisations may be documented on the basis of documents not considered settlement documents.
12.1. The Government shall establish other procedure for cost documentation due to force majeure — that is as a consequence of emergency and unpreventable circumstances in given conditions.
13. Expenses for works accepted and/or services received within the framework of civil law contracts concluded with natural persons not deemed individual entrepreneurs and notaries; agricultural products acquired from natural persons not deemed individual entrepreneurs and notaries and engaged in production of agricultural products; property purchased from natural persons not deemed individual entrepreneurs and notaries or property used under lease; goods acquired, works accepted and/or services received from a non-resident organisation registered in but having no permanent establishment in the Republic of Armenia or from a non-resident natural person registered in but having no permanent establishment in the Republic of Armenia, as well as expenses generated with respect to property invested in the authorised capital (share capital) may be documented as other documents not considered settlement documents, drawn up in the manner prescribed by the legislation where they contain data specified in points 2, 3 and 7-10 of part 4 of this Article (except for sub-point “a” of point 9 and sub-point “a” of point 10 for individual entrepreneurs and natural persons not considered a notary) subject to mandatory inclusion in the tax invoice or the adjusting tax invoice. The Government may prescribe other procedure for cost documentation prescribed by this part.
14. Pursuant to part 13 of this Article, other documents not considered settlement documents and drawn up in the manner prescribed by the legislation shall be issued electronically. The Government shall establish the cases of, procedure and time limits for issue of other documents not considered settlement documents and drawn up in the manner prescribed by the legislation.
(Article 55 supplemented and amended by HO-266-N of 21 December 2017, amended by HO-261-N of 23 March 2018, supplemented by HO-338-N of 21 June 2018, amended, edited and supplemented by HO-68-N of 25 June 2019, supplemented and amended by HO-280-N of 1 June 2020, supplemented by HO-321-N of 18 June 2020, HO-245-N of 26 May 2021, HO-340-N of 25 October 2023, HO-375-N of 22 November 2023)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-280-N of 1 June 2020 has a transitional provision)
(Law HO-321-N of 18 June 2020 has a transitional provision)
(Law HO-340-N of 25 October 2023 has a transitional provision)
(Article as amended by Law HO-491-N of 4 December 2024 shall enter into force on the tenth day following the day of completing the relevant software operations required for the implementation of the provisions prescribed by Articles 1 and 2 of the same Law)
Article 56. Issuance, declaration as invalid, cancellation of a settlement document
1. The organisation, individual entrepreneur and notary shall — with respect to the supply of goods, performance of work and/or provision of service — be obliged to issue relevant settlement documents prescribed by the Code.
2. The person supplying goods, performing work and/or providing service, who/which applies special programmes for issuing settlement documents (billing systems) or utilising cash register as prescribed by Chapter 74 of the Code with respect to transactions involving retail trade, performance of works for the population and/or provision of services to the population need not issue a tax invoice or tax bill, where the persons purchasing the goods, accepting the work and/or receiving the service do not require issuance of a tax invoice or a tax bill.
3. Settlement documents shall be issued in electronic form, except for:
(1) cash register receipt provided for by Article 380 of the Code, as well as the settlement documents containing information considered secret and/or subject to limited use;
(2) cases prescribed by the Government when the settlement documents may be issued as prescribed by the Government.
4. Settlement documents shall be issued upon supplying goods, completing the performance of work (including in accordance with the stages provided for by the contract) and/or completing the provision of services (including in accordance with the stages provided for by the contract), except for the cases prescribed by parts 8 and 8.1 of this Article, and the consignment note shall be issued before the transportation of goods.
5. Within the framework of the joint activity carried out as prescribed by Chapter 5 of the Code:
(1) settlement documents serving as a basis for the calculation of taxes on executed transactions shall be issued by the reporting participant of a joint activity or shall be received in the name of the reporting participant of a joint activity;
(2) one copy of the settlement document for acquiring assets and services, accepting works and receiving services relating to the investments made by reporting participants of a joint activity in the joint activity along with one copy of acceptance delivery acts reflecting the quantity of relevant assets and volumes of services shall be communicated to the reporting participant of a joint activity. The participants communicating them shall also be obliged to also keep with them one copy of each document referred to in this point in accordance with the procedure and within the time limits prescribed by the Code.
6. Organisations and individual entrepreneurs considered to be delegatees or agents supplying goods or performing work or providing service under the contracts of delegation or agency envisaging a condition of acting on behalf of the principal may — on behalf of the delegator or the principal respectively — issue tax invoices, adjusting tax invoices, tax invoices of VAT refund, as well as invoice or adjustment invoice, where a power of attorney to issue such settlement documents has been issued to the delegatee or the agent. In cases prescribed by the Code, the settlement documents issued by the delegatee or the agent shall, in addition to the data thereof, be also completed with the information referred to in part 4 of Article 55 of the Code pertaining to the delegatee or principal.
7. In case the responsibility for calculation and payment of the value added tax on the transaction of supplying goods, performing work or providing service executed in the Republic of Armenia by a non-resident organisation with no permanent establishment in the Republic of Armenia is, pursuant to Section 4 of the Code, borne by an organisation, individual entrepreneur, notary or permanent establishment resident in the Republic of Armenia, the tax invoice for such transaction, and in cases prescribed by the Code, also the adjusting tax invoice shall be issued by the organisation, individual entrepreneur, notary or permanent establishment resident in the Republic of Armenia.
8. Based on the peculiarities of organisation of the activities:
(1) settlement documents provided for by points 1-4 of part 2 of Article 55 of the Code may be issued in advance, provided that the goods specified in that settlement document are supplied on the day of supply of goods indicated in the settlement document or works are performed or performance thereof is completed on the day of performance of works or day of completing the performance of works indicated in the settlement document, or services are provided or provision thereof is completed on the day of provision of services or the day of completing the provision of services indicated in the settlement document;
(2) settlement documents with regard to transactions for providing public services or utility services may be issued after completing the provision of services for the calculation period;
(3) in cases prescribed by part 7 of this Article, where it is impossible to issue the tax invoice within the time limits prescribed by this Article, the tax invoice shall be issued on the day of actually receiving the settlement or payment document submitted by the supplier with regard to the value of goods, work or service.
8.1. In accordance with Articles 380 and 380.1 of the Code, the users of a cash register machine may — when making retail sale (delivery), performing works for the public or providing services to the public upon orders — print (generate) the cash register receipts in advance, provided that in case of supply (delivery) of goods, they shall be printed (generated) prior to bringing the goods being delivered out from the place of delivery or point of delivery.
9. Settlement documents issued as prescribed by parts 5-7 of this Article shall, for the purposes of the Code, amount to the settlement documents issued by the organisation or natural person supplying goods, performing work and/or providing service.
10. The settlement document relating to the transaction involving supply of goods, performance of work and/or provision of service may — upon the initiative of the organisation, individual entrepreneur or notary supplying goods, performing work and/or providing service — be cancelled in the following cases:
(1) the settlement document has been issued in the name of the taxpayer, to whom goods were not supplied, for whom work was not performed, and/or to whom service was not provided;
(2) the tax invoice has been issued in violation of one of the restrictions prescribed by Article 67 of the Code;
(3) in cases prescribed by point 2 of part 11 of Article 345 of this Code;
(4) the settlement document relating to supply of goods, performance of works or provision of services has been filled in with mistakes, which may give rise to legal or financial consequences (for instance penalties, restrictions on expense entry or offsetting) for the issuer or receiver thereof;
(5) any data (quantity (volume), price, excise tax, rate of value added tax or amount of value added tax) used in the calculation of the overall value of goods supplied, work performed or service provided on the basis of the settlement document has been filled in with mistakes.
The cancelled settlement document shall not give rise, for parties thereto, to legal consequences prescribed by the Code, including rights and obligations.
11. The settlement document previously issued in respect of the transaction declared invalid shall be subject to being declared invalid.
11.1. No settlement document (including adjusting settlement document) may be issued with respect to the transaction, since the tax year covering the day of performance of which three tax years have passed.
12. The procedures for issuing, declaring invalid and cancelling the settlement document shall be prescribed by the Government.
13. An adjusting tax invoice or an adjusting tax bill shall be issued with respect to the transaction subject to adjusting.
(Article 56 amended, supplemented and edited by HO-266-N of 21 December 2017, amended by HO-261-N of 23 March 2018, supplemented and amended by HO-338-N of 21 June 2018 and by HO-280-N of 1 June 2020)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-280-N of 1 June 2020 has a transitional provision)
Article 57. Mandatory requirements for documenting the transactions of supply or transportation of goods
1. Supply or transportation of goods considered to be movable, tangible property (except for goods transported for the purpose of exploiting and/or carrying out the maintenance of public service infrastructures by taxpayers providing public services, fixed assets transported by taxpayers carrying out activities in the spheres included in the list prescribed by the Government, as well as the goods with pipelines and power lines and the foreign currency) and supplied or transported within the territory of the Republic of Armenia shall mandatorily be carried out with the accompanying documents.
2. Goods transported by the taxpayer shall be accompanied by the consignment note certifying the transportation of goods and issued in accordance with the defined procedure, in cases prescribed by the Code, be accompanied by the adjusting tax invoice or the adjustment invoice, in cases prescribed by the Code, be accompanied by the cash register receipts, and the transportation of goods imported into the territory of the Republic of Armenia and transported:
a. in case of import into states not considered EAEU members, by the customs declaration of import of goods;
b. in case of import by land transport from EAEU member states, be accompanied by the transit declaration, and in case of import by air transport — by the settlement document of airway.
2.1. The electronic receipt of the electronic cash register issued (generated) through the procedure prescribed by the Government shall be considered to be an accompanying document within the meaning of this Article.
3. For the purposes of this Article, the following shall be considered goods supplied or transported without the accompanying document:
(1) goods or a part thereof (surplus in quantity as compared to the accompanying documents) actually being supplied or transported without the relevant accompanying document prescribed by the Code;
(2) goods actually being supplied or transported with the accompanying document of supply or transportation failing to meet the requirements of the Code;
(3) actually supplied goods (including transported by the person acquiring them) accompanied by the accompanying documents prescribed for the transportation of goods.
(4) (point repealed by HO-245-N of 26 May 2021)
4. For the purposes of this Article, the goods supplied or transported or a part thereof (the surplus in quantity as compared to the accompanying document) shall be considered to be without an accompanying document also when they are actually supplied or transported with the accompanying documents issued in the manner prescribed for goods already supplied or transported.
5. For the purposes of this Article, the requirements of the Code for the accompanying settlement documents shall be considered not met where these settlement documents lack the following requisites:
(1) series and number of the accompanying document;
(2) date of issue of the accompanying document;
(3) date of supply or transportation of goods;
(4) data of the taxpayer supplying or transporting the goods (except for the case of transportation by the acquiring person), required under Article 55 of the Code;
(5) address of the place of delivery or data of the point of delivery (make and state licence plate of the vehicle) wherefrom the goods are supplied or transported;
(6) the address of the place of destination of the supplied or transported goods except for the cases when the goods are handed over to the purchaser at the place of delivery;
(7) nomenclature and quantity of goods being the subject of transaction and supplied (transported, in case of transportation by the person acquiring the goods), overall value of goods, in total;
(8) nomenclature and quantity of goods transported;
(9) data of the purchaser (receiver) of the goods being supplied or transported, prescribed by Article 55 of the Code, for natural persons, name and surname.
6. For the purposes of part 5 of this Article:
(1) in case of places of delivery or places of destination having no address (being a geographical object outside settlements), name of the administrative and territorial unit shall be indicated as the address of the place of destination, in the territory of which the indicated place and famous name of the given place are, and in case of absence of a name, the requisites more typical for the given place;
(2) requirements for the accompanying settlement document shall be considered to be met also in the cases when there are insignificant deficiencies (misprints, inaccuracies of non-legal nature and omissions), provided that the existing requisites, in essence, justify the compliance with the requirements of part 5 of this Article.
7. The provisions of this Article with respect to the goods being supplied or transported without an accompanying document shall not extend to the goods sold by the taxpayer when the application of cash registers is mandatory, except for itinerant trade points and cases prescribed by part 8.1 of Article 56 of the Code. The provisions of this Article with respect to the goods supplied or transported without an accompanying document shall extend to the goods transported by taxpayers acquiring the goods, irrespective of the fact that the application of cash registers is mandatory for the taxpayer selling the goods.
(Article 57 supplemented and amended by HO-266-N of 21 December 2017, amended by HO-261-N of 23 March 2018, HO-338-N of 21 June 2018, amended and supplemented by HO-280-N of 1 June 2020, amended by HO-245-N of 26 May 2021)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-280-N of 1 June 2020 has a transitional provision)
(Article as amended by Law HO-491-N of 4 December 2024 shall enter into force on the tenth day following the day of completing the relevant software operations required for the implementation of the provisions prescribed by Articles 1 and 2 of this same Law)
PART 2
SPECIAL PART
SECTION 4
VALUE ADDED TAX
CHAPTER 11
(Chapter, as amended by Article 14 of Law HO-68-N of 25 June 2019, shall enter into force on 1 January 2020)
VALUE ADDED TAX AND TAXPAYERS
Article 58. Value added tax
1. Value added tax shall be a state tax paid to the State Budget in the manner, amount and within the time limits prescribed by the Code for carrying out transactions and/or operations considered to be a taxable object prescribed by Article 60 of the Code.
Article 59. Value added tax payers
1. Unless otherwise prescribed by parts 2, 2.1 and 3 of this Article, the organisations, individual entrepreneurs and notaries record-registered as VAT payers with the relevant tax authority in conformity with point 1 of part 4 of this Article shall be considered VAT payers in the following cases and within the following time limits:
(1) starting from 1 January of the given tax year until the end of the given tax year, where the taxpayer — as of 1 January of the given year, pursuant to Section 13 of the Code — may not be considered a turnover taxpayer or failed to submit, within the time limits prescribed by Section13 of the Code, to the tax authority a statement on being considered a turnover taxpayer as approved by the tax authority and being considered an entity of micro-entrepreneurship as approved by the tax authority;
(2) the organisation having been granted state registration (in cases prescribed by law, record-registered) during the tax year, or the natural person record-registered as individual entrepreneurs or appointed as a notary, starting from the day of state registration (in cases prescribed by law, record-registration) or the day of record-registration as an individual entrepreneur or appointment as a notary until the end of the year respectively, where the taxpayer may not, as of the day of state registration (in cases prescribed by law, record-registration) or the day of record-registration as an individual entrepreneur or appointment as a notary respectively, pursuant to Section 13 of the Code, be considered a turnover taxpayer or failed, within the time limits prescribed by Section13 of the Code, to submit to the tax authority a statement on being considered a turnover taxpayer as approved by the tax authority and being considered an entity of micro-entrepreneurship as approved by the tax authority;
(3) the organisation or individual entrepreneur ceasing to be considered an entity of micro-entrepreneurship during the tax year, starting from the day of ceasing to be considered to be an entity of micro-entrepreneurship until the end of the tax year, where the taxpayer, as of the day of ceasing to be considered an entity of micro-entrepreneurship, pursuant to Section 13 of the Code, may not be considered a turnover taxpayer or failed, within the time limits prescribed by Section 13 of the Code, to submit to the tax authority a statement on being considered a turnover taxpayer as approved by the tax authority. In cases prescribed by this point the taxpayer shall, starting from the day of ceasing to be considered an entity of micro-entrepreneurship, submit a statement on being considered a VAT payer and being record-registered as a VAT payer (hereinafter referred to as the statement) as approved by the tax authority stating the relevant ground and day of ceasing to be considered an entity of micro-entrepreneurship;
(4) starting from the day indicated in the statement (but not earlier than the 20th day preceding the day of submitting the declaration) until the end of the tax year indicated in the statement, where the taxpayer has submitted a statement to the tax authority making an indication of the fact of ceasing to be considered a VAT payer and being record-registered as a VAT payer. Where the taxpayer, pursuant to Section 13 of the Code, ceases to be considered a turnover taxpayer before the day indicated in the statement, the turnover taxpayer shall be considered a VAT payer as prescribed by point 5 of this part (the statement is not taken into consideration). Where pursuant to Section 13 of the Code the taxpayer has ceased to be considered an entity of micro-entrepreneurship before the day indicated in the statement, and where the taxpayer, as of the day of ceasing to be considered an entity of micro-entrepreneurship, pursuant to Section 13 of the Code, may not be considered a turnover taxpayer or failed to submit, within the time limits prescribed by Section 13 of the Code, to the tax authority a statement on being considered a turnover taxpayer as approved by the tax authority, the entity of micro-entrepreneurship shall, in the manner prescribed by point 3 of this part, be considered a VAT payer (the statement shall not be taken into account);
(5) starting from the point in the tax year until the end of the given tax year from which the taxpayer shall, pursuant to Section 13 of the Code, cease to be considered a turnover taxpayer in the given tax year. Moreover, in case of being considered a VAT payer on the ground of exceeding the threshold of the amount of AMD 115 million of sales turnover with respect to all types of activities in the tax year, the VAT shall be calculated and paid in the amount exceeding the VAT threshold. Starting from the day of emergence of one of the grounds for ceasing to be considered a turnover taxpayer until the 20th day inclusive following that day the taxpayer shall submit a statement to the tax authority indicating the relevant ground and day of ceasing to be considered a turnover taxpayer.
2. The non-commercial organisations, as well as the organisations and the individual entrepreneurs producing agricultural products, which are record-registered with the tax authority as VAT payers in accordance with point 1 of part 4 of this Article, shall be considered VAT payers in the following cases and within the following time limits:
(1) starting from 1 January of the given year until the end of the given year, in case the sales turnover of the organisation or individual entrepreneur with respect to all types of activities in the previous tax year calculated as prescribed by part 2 of Article 254 of the Code has exceeded AMD 115 million;
(2) starting from the point in the tax year until the end of the given tax year from which the sales turnover of the organisation or individual entrepreneur with respect to all types of activities in the previous year calculated as prescribed by part 2 of Article 254 of the Code has exceeded AMD 115 million. Moreover, in case of being considered a VAT payer on the ground of exceeding the threshold of AMD 115 million of sales turnover with respect to all types of activities in the tax year, the VAT shall be calculated and paid in the amount exceeding the VAT threshold. Starting from the day of exceeding AMD 115 million of sales turnover with respect to all types of activities until the 20th day inclusive following that day the taxpayer referred to in this part shall submit to the tax authority a statement indicating the day of exceeding the VAT threshold;
(3) starting from the day indicated in the statement (but not earlier than the 20th day preceding the day of submitting the statement) until the end of the tax year indicated in the statement, in case where the organisation or individual entrepreneur submits a statement to the tax authority making an indication of the fact of being considered a VAT payer and being record-registered as a VAT payer. Where AMD 115 million of sales turnover, calculated as prescribed by part 2 of Article 254 of the Code, with respect to all types of activities of the taxpayer indicated in this part is exceeded before the day indicated in the statement, the taxpayer referred to in this part shall be considered to be a VAT payer as prescribed by point 2 of this part (the statement shall not be taken into consideration).
Where the organisation or individual entrepreneur carries out other activities along with the production of agricultural products, they shall be considered to be VAT payers in the cases and within the time limits prescribed by part 1 of this Article.
2.1. The organisations and individual entrepreneurs carrying out activities in the sphere of public catering, record-registered as VAT payers with the tax authority in conformity with point 1 of part 4 of this Article shall be considered VAT payers in the following cases and within the following time limits:
(1) starting from 1 January of the given tax year until the end of the given tax year, where the organisation or individual entrepreneur failed to submit, within the time limits prescribed by Section 13 of this Code, to the tax authority a statement on being considered a turnover taxpayer as approved by the tax authority;
(2) the organisation having been granted state registration (in cases prescribed by law, record-registered) during the tax year or the natural person record-registered as an individual entrepreneur, starting from the day of state registration (in cases prescribed by law, record-registration) or the day of record-registration as an individual entrepreneur until the end of the given tax year respectively, where the taxpayer failed to submit, within the time limits prescribed by Section 13 of the Code, to the tax authority a statement on being considered a turnover taxpayer as approved by the tax authority;
(3) from the day indicated in the statement (but not earlier than the 20th day preceding the day of submitting the statement) until the end of the tax year indicated in the statement, where the taxpayer has submitted a statement to the tax authority making an indication of the fact of being considered a VAT payer and being record-registered as a VAT payer.
3. Organisations record-registered with the tax authority as VAT payers in conformity with point 2 of part 4 of this Article shall be considered VAT payers starting from the day indicated in the statement (but not earlier than the 20th day preceding the day of submitting the statement) until the end of the tax year indicated in the statement.
4. The following shall be record-registered as VAT payers with the tax authority as prescribed by Section 14 of the Code:
(1) organisations (except for the organisations prescribed by point 2 of this part), individual entrepreneurs and notaries;
(2) in case of submitting a statement voluntarily:
a. the Republic of Armenia represented by state authorities;
b. the communities of the Republic of Armenia represented by community administration institutions;
c. the Central Bank of the Republic of Armenia.
5. Organisations and individual entrepreneurs not record-registered with the tax authority as VAT payers shall not be considered VAT payers but in case of carrying out transactions and/or operations prescribed by Article 60 of the Code and considered a taxable object, they shall, in the manner, in the amount and within the time limits prescribed by the Code, be obliged to calculate and pay to the State Budget the VAT amounts arising from these transactions and/or operations, except for cases prescribed in the second paragraph of this part.
In cases when non-commercial organisations and the organisations and individual entrepreneurs producing agricultural products carry out, as prescribed by points 1 and 2 of part 1 of Article 60 of the Code, transactions considered to be taxable objects, which do not exceed AMD 115 million of sales turnover with respect to all types of activities, calculated in the manner prescribed by part 2 of Article 254 of the Code (except for the transactions involving supply of goods not considered to be agricultural products), as well as in the case prescribed by part 2 of Article 70 of the Code, they shall not be obliged to calculate and pay to the state budget VAT from those transactions in the manner, amount and within the time limits prescribed by the Code.
6. Natural persons not acting as individual entrepreneurs and notaries shall not be considered VAT payers, but shall be obliged to calculate and pay to the State Budget VAT amounts arising from the following operations in the manner, in the amount and within the time limits prescribed by the Code, where:
(1) they import goods into the territory of the Republic of Armenia from EAEU member states, except for the case prescribed by part 7 of this Article, the import of which, pursuant to the Law of the Republic of Armenia “On customs regulations”, is considered import for the purposes of entrepreneurial activities;
(2) they import goods into the territory of the Republic of Armenia from non-member states of the EAEU, the import of which, pursuant to the Law of the Republic of Armenia “On customs regulation”, is considered import for the purpose of entrepreneurial activity, and in case of import of which, in accordance with the Customs Code of the Eurasian Economic Union approved by Annex No 1 of the Treaty on the Customs Code of the Eurasian Economic Union of 11 April 2017, customs duties and taxes charged in the form of a lump sum customs fee are applied;
(3) non-resident natural persons having no permanent establishment carry out operations involving import of goods considered VAT taxable object.
7. Within the scope of electronic trade of goods, where in accordance with point 2 of part 1 of Article 37 of the Code the place of supply of goods is considered the Republic of Armenia, in terms of those transactions, the non-resident organisation or an individual entrepreneur of another EAEU member state having no permanent establishment in the Republic of Armenia and operating the electronic trading platform, shall be obliged to calculate and pay VAT in the manner, amount and within the time limits prescribed by the Code.
(Article 59 amended, supplemented by HO-266-N of 21 December 2017, amended by HO-261-N of 23 March 2018, HO-338-N of 21 June 2018, HO-68-N of 25 June 2019, edited by HO-355-N of 14 September 2022, supplemented by HO-595-N of 23 December 2022, amended by HO-285-N of 12 June 2024)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-595-N of 23 December 2022 has a transitional provision)
(Law HO-285-N of 12 June 2024 has a transitional provision)
CHAPTER 12
OBJECTS, TAX BASE AND RATES OF TAXATION BY VALUE-ADDED TAX
Article 60. VAT taxable object
1. The following transactions and operations shall be considered VAT taxable objects:
(1) the supply of goods where the place of supply of goods is, pursuant to Article 37 of the Code, considered the Republic of Armenia;
(2) performance of work and/or provision of service. For the purposes of this point, provision of service (except for the cases prescribed by part 3 of this Article) shall also mean:
a. providing goods for lease or use, as well as provision of the property by leasing (types thereof) in terms of the amount of the interest;
b. providing a loan;
c. alienating intangible assets;
d. providing use of intangible assets;
(3) import of goods into the Republic of Armenia under the customs procedure “Release for domestic consumption”;
(4) import of goods having the status of EUEA goods into the Republic of Armenia from the EUEA member states.
2. The transaction of supply of goods shall not be considered VAT taxable object where the place of supply of goods, pursuant to Article 37 of the Code, is not considered to be the Republic of Armenia.
3. The transaction on provision of the transport service related to the transportation of cargo, mail and/or passengers via any type of vehicle shall not be considered VAT taxable object, if it starts and ends outside the territory of the Republic of Armenia. For the application of this part, intermediary activities for organising the transportation of cargo, mail and/or passengers through (with the involvement of) other organisations and/or natural persons, which originates outside the territory of the Republic of Armenia and finishes outside the territory of the Republic of Armenia, shall be deemed to be transportation services.
(Article 60 supplemented by HO-266-N of 21 December 2017, supplemented by HO-338-N of 21 June 2018, edited by HO-321-N of 18 June 2020, supplemented by HO-517-N of 7 December 2022)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-321-N of 18 June 2020 has a transitional provision)
(Law HO-517-N of 7 December 2022 has a final part and a transitional provision)
Article 61. Tax base for value added tax
1. In case of transactions involving supply of goods, performance of work or provision of service, unless otherwise prescribed by Article 62 of the Code, the VAT tax base shall be considered to be the value thereof expressed in monetary terms, without VAT.
2. In case of import of goods into the Republic of Armenia under the customs procedure “Release for domestic consumption”, unless otherwise prescribed by Article 62 of the Code, the VAT tax base shall be considered to be the sum total of the customs value, customs duty determined as prescribed by the EAEU unified customs legislation, and pursuant to Section 5 of the Code, in case of import of excisable goods, also of the excise tax calculated as prescribed by the Code.
3. In case of import of goods having the status of the EUEA goods into the Republic of Armenia from the EUEA member states, unless otherwise prescribed by Article 62 of the Code, the VAT tax base shall be considered to be the value of acquisition of imported goods, and pursuant to Section 5 of the Code, in case of import of excisable goods, the total amount of the value of acquisition of imported goods and the excise tax calculated as prescribed by the Code.
4. In case of transaction of supply of goods having the status of the EAEU goods and exported from the territory of the Republic of Armenia under the customs procedure “Export”, as well as exported to the EAEU member states, the VAT tax base shall be considered to be the customs value calculated as prescribed by the Law of the Republic of Armenia “On customs regulation”.
Article 62. Peculiarities of determining the tax base for the value added tax
1. When determining the VAT tax base of the transaction of supply of goods, the following shall also be added to the tax base prescribed by part 1 of Article 61 of the Code:
(1) pursuant to Section 5 of the Code, in case of supply of excisable goods, the amount of the excise tax calculated as prescribed by the Code;
(2) pursuant to Section 8 of the Code, in case of supply of goods subject to taxation by nature protection tax, the amount of nature protection tax calculated as prescribed by the Code.
2. In case of supply of containerised goods, the cost of the container shall be included in the VAT tax base.
3. In case of transactions for import and/or supply of tobacco products, the maximum retail price marked on the package of the cigarettes as prescribed by the Government without VAT shall be considered to be the VAT tax base.
4. In the manner prescribed by the EAEU unified customs legislation:
(1) in case of import of the product derived from the raw material exported from the territory of the Republic of Armenia under the customs procedure “Processing outside the customs territory” for the purpose of processing or exported to the EAEU member states for the purpose of processing, the cost of works and/or services relating to the processing of the raw material shall be considered to be the VAT tax base, and in case of producing a new product as a result of processing of the raw material and subject to taxation by excise tax pursuant to Section 5 of the Code shall include also the amount of the excise tax calculated for that new product as prescribed by Section 5 of the Code;
(2) in case of import of the property exported from the Republic of Armenia under the customs procedure “Processing outside the customs territory” for the purpose of repairing (mending) or exported to the EAEU member states for the purpose of repairing (mending), the value of spare parts, parts, components, other fitting elements used for repairing (mending) that property shall be considered to be the VAT tax base.
In cases prescribed by this part, where there is a lack of documents (including contracts, settlement documents) drawn up between the parties to the transaction or these documents do not specify the cost of processing work and/or services of the raw material, spare parts, parts, components, other fitting elements used for repairing (mending) the property, the following shall be considered to be the VAT tax base:
a. in case of import of a product derived from the raw material exported from the territory of the Republic of Armenia under the customs procedure “Processing outside the customs territory” for the purpose of processing, the positive difference of the customs value of the imported product resulting from the processing and the customs value of exported raw material, and in case of producing a new product as a result of processing of the raw material subject to taxation by excise tax under Section 5 of the Code, the VAT tax base shall also include the amount of the excise tax calculated for that new product as prescribed by Section 5 of the Code;
b. in case of import of a product derived from the raw material exported to the EAEU member states for the purpose of processing, the positive difference of the book value of the imported product resulting from the processing, and in case of producing a new product resulting from the processing of the raw material subject to taxation by excise tax under Section 5 of the Code, the VAT tax base shall also include the amount of excise tax calculated for that new product as prescribed by Section 5 of the Code if that amount is not included in the book value of imported product resulting from the processing;
c. in case of import of the property exported from the territory of the Republic of Armenia under the customs procedure “Processing outside the customs territory” for the purpose of repairing (mending) — the positive difference of the customs value of the repaired (mended) property being imported and the customs value of the exported property;
d. in case of import of the property exported to the EAEU member states for the purpose of repairing (mending), the positive difference of the book value of the repaired (mended) property being imported and the book value of the exported property.
5. In the manner prescribed by the EAEU unified customs legislation:
(1) in case of export of goods imported into the Republic of Armenia under the customs procedure “Processing within the customs territory” for the purpose of processing or export of goods derived from the raw material imported into the Republic of Armenia from the EAEU member states for the purpose of processing, the cost of works and/or services relating to the processing of the raw material shall be considered to be the VAT tax base;
(2) in case of export of the property imported into the Republic of Armenia under the customs procedure “Processing within the customs territory” for the purpose of repairing (mending) or imported into the Republic of Armenia from the EAEU member states for the purpose of repairing (mending), the value of spare parts, parts, components, other fitting elements used for repairing (mending) that property shall be considered to be the VAT tax base.
In cases prescribed by this part, where there is lack of documents (including contracts, settlement documents) drawn up between the parties to the transaction or these documents do not envisage the cost of works and/services relating to the processing of the raw material, of spare parts, parts, components, other fitting elements used for repairing (mending) the property:
a. in case of export of the product derived from the raw material imported into the Republic of Armenia under the customs procedure “Processing within the customs territory” for the purpose of processing, the positive difference of the customs value of the exported product resulting from the processing and the customs value of imported raw material shall be deemed to be the VAT tax base;
b. in case of export of the product derived from the raw material imported into the Republic of Armenia from the EAEU member states for the purpose of processing the VAT tax base shall be deemed to be 0;
c. in case of export of the property imported into the Republic of Armenia under the customs procedure “Processing within the customs territory” for the purpose of repairing (mending), the positive difference of the customs value of the repaired (mended) property being exported and the customs value of the imported property shall be deemed to be the VAT tax base;
d. in case of export of the property imported into the Republic of Armenia from the EAEU member states for the purpose of repairing (mending) the VAT tax base shall be deemed to be 0.
6. In case of transactions without compensation for supply of goods, performance of work or provision of service or with compensation at a significantly lower cost than the actual value, the VAT tax base shall be deemed to be 80 per cent of the actual value of these transactions, except for the cases prescribed by part 7 of this Article. For the purposes of this part:
(1) it is considered that the transaction deemed to be the object of VAT taxation has been executed at a significantly lower cost than the actual value where the compensation value thereof (without VAT) is less by 20 per cent and more than the actual value (without VAT) of the transaction of supply of identical goods, and in case of absence thereof — of similar goods, performance of similar work or provision of similar service, except for the following:
a. transactions executed through public biddings in cases prescribed by law;
b. transactions of supply of goods or performance of work or provision of service, which are executed by the taxpayer at a lower cost equivalent to the amount of the trade discount specified in a written act adopted previously or another legal act adopted previously, and that trade discount shall, within the time limits prescribed by the acts referred to in this sub-point, be reflected in the settlement documents issued by the taxpayer;
(2) for the purpose of determining the actual value of the transaction in order of priority referred to in this point, the following shall be taken as a basis:
a. VAT tax base, calculated as prescribed by the Code in case of supply of the identical goods, performance of identical work or provision of identical service by the given taxpayer in comparable circumstances, and in case it is unavailable, the value, which is taken as a basis for the VAT tax base in case of supply of identical goods, performance of identical work or provision of identical service within business circles in comparable circumstances, or
b. VAT tax base, calculated as prescribed by the Code in case of supply of similar goods, performance of similar work or performance of similar service by the given taxpayer in comparable circumstances, and in case it is unavailable, the value, which is taken as a basis for the VAT tax base in cases of supply of similar goods, performance of similar work or performance of similar service within business circles in comparable circumstances.
For the purposes of this point, the comparable circumstances of the transactions of supply of identical or similar goods, performance of identical or similar work or provision of identical or similar service shall be determined based on the transactions of supply of identical or similar goods, performance of identical or similar work or identical or similar service within 365 days preceding the day of performance of the relevant transaction.
The provisions of this part shall not apply to the tax base of free-of-charge legal services provided as prescribed by law by VAT payers practising the profession of advocate (voluntary gratuitous legal aid), unless the VAT tax base of those services, determined as prescribed by this part, exceeds 5 per cent of the VAT tax base with respect to all transactions of VAT payers deemed to be object of VAT taxation during the given reporting period. Where the VAT tax base of free-of-charge legal services provided as prescribed by law by VAT payers practising the profession of advocate (voluntary gratuitous legal aid), determined as prescribed by this part, exceeds 5 per cent of the VAT tax base with respect to all transactions of VAT payers deemed to be object of VAT taxation during the given reporting period, the provisions of this part shall apply to the part exceeding that amount.
7. Based on decisions of the Government, in case of transactions without compensation for supply of goods, performance of work or provision of service by the VAT payer, the VAT tax base shall be considered AMD 0, and in case of transactions with compensation at a lower cost than the actual value, the VAT tax base shall be considered to be the amount of compensation receivable, without VAT.
8. In case of alienation of buildings, constructions (including unfinished, half-finished), residential or other areas, land parcels, the VAT tax base shall be determined as prescribed by Article 61 of the Code and this Article, but not less than 80 per cent of the immovable property tax base determined therefor as prescribed by Article 228 of the Code, except for the case prescribed by this part. In case of alienation of buildings, constructions (including unfinished, half-finished), residential or other areas having undergone state registration after 1 January 2021 on the basis of the contract on the right of purchase of immovable property, the value added tax base shall be determined by Article 61 of the Code and in accordance with the procedure prescribed by this Article, but not less than 80 per cent of the settlement price of immovable property calculated by the procedure as prescribed by the law defining the cadastral valuation procedure approximated to the market value of the immoveable property for the purpose of taxation under the immovable property tax, as in force as of the state registration date of the right of purchase of immovable property, and calculated on the basis of qualitative and quantitative characteristics of immovable property as of the date of alienation of the immovable property.
In case the owner of the property to be alienated (having been alienated) for the purpose of ensuring overriding public interests is compensated with apartments, residential houses or other premises in a constructed block of flats (including multifunctional) or in a subdivided building, the value determined by part 1 of Article 11 of the Law of the Republic of Armenia “On the alienation of property for the purpose of ensuring overriding public interests” shall be considered to be the VAT tax base.
The provisions of the first paragraph of this part shall not apply:
(1) where the state or the community is considered a party to the transaction of alienation of the property prescribed by the first paragraph of this part (except for the cases when the transaction is executed through another organisation);
(2) in case of transactions entered by a bank or a credit organisation for alienation of property prescribed by the first paragraph of this part, over which the right of pledge of the bank or credit organisation was registered before the entry into force of the Law of the Republic of Armenia "On establishing the cadastral appraisal procedure approximated to the market value of immoveable property for the purpose of taxation with immoveable property tax", and that property was transferred to the bank or credit organisation as a result of purchase in a compulsory or bankruptcy auction.
9. In case of transactions of providing buildings, constructions (including unfinished, half-finished), residential or other areas, land parcels under the right to lease or gratuitous use, the VAT tax base shall be determined in the amount prescribed by Article 31 of the Code and this Article, but not less than 80 per cent of cadastral value approximated to the market value of the immovable property valuated in accordance with the procedure prescribed by law (calculated net income — in case of land parcel of agricultural significance) (hereinafter in this paragraph referred to as “cadastral value”), and where it is unavailable, 2.5 per cent of cadastral value corresponding to the share of the area provided for lease or gratuitous use in the total area of the immoveable property, as calculated annually. The amount shall be equally allocated according to the entire VAT reporting periods.
In case of providing the property prescribed by this point under the right to lease or gratuitous use and /or terminating the right over that property to lease or gratuitous use during the VAT reporting period, the VAT tax base for abovementioned transactions during the reporting period shall be determined as the product of the tax base determined by the first paragraph of this point and the share of the days of providing, during the reporting period, the property under the right to lease or gratuitous use within the days included in the reporting period.
Within the meaning of applying the first paragraph of this part, in case where the construction (including the building, residential or other area) or the land parcel are severally given for lease or gratuitous use, then the cadastral value shall be deemed to be 80 per cent of cadastral value approximated to the market value of the construction or the land parcel severally (calculated net income — in case of land parcel of agricultural significance), and where the construction and the land parcel are jointly given for lease or gratuitous use — 80 per cent of the total cadastral value approximated to the market value of the construction and the land parcel.
Provisions of this part shall not apply, where the state or the community is considered a party to the transaction, prescribed by this part, of alienating or giving the property units for lease or gratuitous use (except for cases when the transaction is executed through another organisation).
10. In case of providing services by the delegatee based on the delegation contract, the VAT tax base for the delegatee shall be considered the amount payable to the delegatee (the amount of remuneration and the amount being paid as a compensation for the expenses incurred by delegatee on his own behalf) without VAT, the VAT tax base for the delegator shall be considered the total cost of supply of goods or performance of work or provision of service by the delegatee on the basis of the delegation contract, without VAT.
11. In case of supply of goods or performance of work or provision of service by a commission agent based on the commission contract (except for the case prescribed by this part), the VAT tax base for the commission agent shall be considered the total value (without VAT) of the goods supplied or work performed or service provided by him or her, and the VAT tax base for the commission principal shall be considered the difference of the value (without VAT) of the goods supplied or work performed or service provided by commission agent based on the commission contract and the amount (without VAT) payable to the commission agent. The VAT tax base for the commission agent shall be determined by the total value of the goods supplied or work performed or service provided by him or her also in cases when the goods acquired or the result of the work accepted or service received by the him or her from another person based on the commission contract is transferred to the commission principal.
Where the transaction of supply of goods or performance of work or provision of service based on the commission contract is not subject to VAT taxation or is subject to the 0 rate VAT taxation pursuant to the Code, the VAT tax base for the commission agent shall be considered the amount payable thereto (the amount of remuneration and the amount paid as compensation for expenses incurred by the commission agent on his or her behalf) without VAT.
12. In case of supply of goods or performance of work or provision of service by the agent based on the agency contract:
(1) where the agent acts on behalf of the principal or at the expense of the principal, the VAT tax base for the agent and the principal shall be determined by the rules of determination of the VAT tax base for the delegator and delegatee respectively prescribed by part 10 of this Article;
(2) where the agent acts on behalf thereof or at the expense of the principal, the VAT tax base for the agent and the principal shall be determined by the rules of determination of the VAT tax base for the commission agent and commission principal respectively prescribed by part 11 of this Article.
13. In case the products are produced from the raw material and materials provided by the customer or are bottled or otherwise containerised when the right of ownership to the raw materials, materials and products produced, bottled or otherwise containerised belongs to the client, the VAT tax base for the producer, person carrying out the bottling or otherwise containerisation shall be considered the cost of production, bottling or otherwise containerisation of products of those raw materials or materials, without VAT.
14. In case of supply of goods through auction, the VAT tax base for the auctioneer shall be considered the amount of commission (bonus, interest, etc.) given to the auctioneer by the owner of the supplied goods and/or another person, without VAT.
15. The VAT tax base for tourism activities shall be determined as prescribed by Article 61 of the Code and this Article excluding the amount paid by the tour operator or travel agent for the transportation of passengers.
16. The VAT tax base for transactions of supply of goods, performance of work or provision of service according to the tariffs set by the state or the authorised body shall be considered the total amount of the relevant tariff (without VAT) and the subsidies provided from the State Budget with respect to the application thereof (without VAT).
17. Where the amount subject to compensation for the supply of goods with respect to the transactions of supply of types of goods prescribed by the Government is, pursuant to the contract concluded, subject to verification based on the adjustment data (final quantity and quality characteristics of goods) after receiving the goods or completing the processing thereof, in case of supply of goods the VAT tax base shall be determined based on the settlement price per unit of goods determined in accordance with the data published by the foreign stock market or journal and on verified data envisaged by the contract for supply of the given goods (irrespective of the amount of compensation subject to payment as a result of final settlement). For the purposes of this part:
(1) data verified for the purpose of determining the tax base, the maximum limits on verification thereof, as well as the procedure (including the frequency of determination of the settlement price) for determination of the settlement price per unit of goods shall be established by the Government;
(2) in case of transaction of supply of goods, the increase or decrease in the amount (without VAT) subject to compensation for the supply of goods shall be included in the unified calculation report submitted to the tax authority for the reporting period covering the day the final amount subject to compensation for the supply of goods becomes known, as an increase or decrease in the VAT tax base.
18. The VAT tax base for the trustee with regard to the transaction executed as a result of the trust management of property and serving as VAT taxable object shall be deemed to be the total cost of the tax base determined for the transactions executed thereby and the trustor as prescribed by the Code.
19. The VAT tax base for the following financial transactions shall be determined as follows:
(1) VAT tax base for a transaction of buying and selling foreign currency shall be considered the positive difference of the cost of sale and acquisition of foreign currency;
(2) VAT tax base for accepting demand, term, savings and other similar deposits, opening, maintaining and carrying out the maintenance of bank and other accounts, as well as payment and settlement services shall be considered the fee charged for the provision of these services, without VAT;
(3) VAT tax base for services of providing loans (borrowings) shall be considered the yield in monetary terms, as well as the lump sum fee for the loan (borrowing) charged at the time of extending the loans (borrowings), certain periodic charges for servicing (including monitoring) the loan, the fee charged for processing the loan application, the fees charged for opening, maintaining and servicing loan accounts;
(4) VAT tax base for factoring services shall be considered the difference of the monetary claim conceded to the service provider and monetary funds transferred to the service user;
(5) VAT tax base for services of issuing suretyship, bank guarantees, letters of credit shall be considered the fee charged for the provision of these services, without VAT;
(6) the VAT tax base for transactions of issuing and/or alienating securities, including promissory notes, cheques, bills of exchange, other payment securities, settlement documents shall be considered the price of alienation of the securities, without VAT;
(7) VAT tax base for services of custody and record-keeping of the securities shall be considered the fee charged for the provision of these services, without VAT;
(8) VAT tax base for transactions of discounting, transferring, conceding promissory notes, cheques, bills of exchange, other payment securities, payment documents or maintenance services shall be considered the discount without VAT or the fee charged for the provision of maintenance service, without VAT;
(9) VAT tax base for transactions of issuing, discounting, transferring, conceding payment cards and other instruments or maintenance services shall be considered the fee for providing payment cards and other instruments, without VAT or the fee charged for maintenance services, without VAT;
(10) VAT tax base for the service of providing cash shall be considered the fee for cash-withdrawal charged for these services, without VAT;
(11) VAT tax base for services of trust management of securities shall be considered the fee (remuneration) charged for trust management services provided by the trustor, without VAT;
(12) in case of alienation of bank gold, the VAT tax base shall be considered the value of the bank gold, without VAT;
(13) VAT tax base for services of opening and maintaining bank gold accounts, executing other transactions through them shall be considered the service fee, without VAT;
(14) in case of alienation of the collateral that has become the property of a bank or credit organisation as prescribed by law and belonged to the natural person not considered an individual entrepreneur prior to that, the VAT tax base shall be considered the value of alienation of the collateral, without VAT;
(15) VAT tax base for services of receiving money (revenue, utility and other fees), as well as providing salary, pension, benefit, making insurance and other fees shall be considered the fee charged for these services, without VAT;
(16) where the contract on leasing (types thereof) provides that the right over the object of leasing may be transferred to the lessee upon the expiration of the contract or prior to its expiration, the VAT tax base shall be considered to be the amount of money corresponding to the value of the object of leasing receivable during the reporting period and the interest amounts receivable during the reporting period upon the contract, and where the contract on leasing (types thereof) does not provide that the right over the object of leasing may be transferred to the lessee upon the expiration of the contract or prior to its expiration, the VAT tax base shall be considered the interest amount receivable upon the contract on leasing (types thereof).
20. In case of alienation of goods subject to excise tax provided for by parts 4 and 5 of Article 88 of the Code, the VAT tax base is determined as prescribed by Article 61 and this Article of the Code, but not less than in the amount of the minimum prices (including the excise tax) for alienation prescribed by parts 4 and 5 of Article 88 of the Code, without VAT.
21. In case of alienation to a natural person who is not an individual entrepreneur and notary of the motor vehicle (including agricultural machinery) purchased by a VAT payer organisation and having a trade-in license for purchase of motor vehicle (including agricultural machinery), the VAT tax base shall be considered the positive difference of the VAT tax base calculated in accordance with the procedure prescribed by Article 61 of the Code and this Article during further alienation of the motor vehicle (including agricultural machinery) and the purchase price of the motor vehicle (including agricultural machinery) substantiated by the document drawn in accordance with part 13 of Article 55 of the Code.
(Article 62 amended and supplemented by HO-266-N of 21 December 2017, amended by HO-261-N of 23 March 2018, HO-407-N of 24 October 2018, supplemented by HO-68-N of 25 June 2019, edited by HO-321-N of 18 June 2020, supplemented, edited by HO-276-N of 4 June 2021, supplemented by HO-224-N of 27 May 2021, amended by HO-360-N of 17 November 2021, HO-454-N of 24 November 2022, amended and supplemented by HO-120-N of 22 March 2023, supplemented by HO-72-N of 26 March 2025)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-321-N of 18 June 2020 has a transitional provision)
(Law HO-276-N of 4 June 2021 has a final part and transitional provisions)
(Law HO-360-N of 17 November 2021 has a transitional provision)
(Law HO-454-N of 24 November 2022 has a final part and a transitional provision)
(Law HO-120-N of 22 March 2023 has a final part and a transitional provision)
(Law HO-72-N of 26 March 2025 has a transitional provision)
Article 63. Value added tax rates
1. VAT against the tax base of transactions and operations considered to be the object of VAT taxation as prescribed by Article 60 of the Code shall be calculated at the rate of 20%, except for the transactions and operations prescribed by Articles 64 and 65 of the Code.
2. The amount of VAT in the amount of compensation covering the amount of VAT for supply of goods, performance of work, provision of service shall be determined by the estimated value of 16.67 interest rate, where:
(1) an organisation or individual entrepreneur has not, in violation of the requirements of the Code, considered himself/herself/itself to be a VAT payer;
(2) an organisation, individual entrepreneur or notary considered to be a VAT payer has not indicated the VAT rates and amount in a separate line in the settlement documents issued with respect to transactions considered objects of VAT taxation and subject to taxation at the rate of 20 per cent of VAT;
(3) an organisation, individual entrepreneur or notary considered to be a VAT payer has not issued settlement documents with respect to the transactions considered objects of VAT taxation and subject to taxation at the rate of 20 per cent of VAT;
(4) The organisation, individual entrepreneur or the notary considered to be a VAT payer has only provided the buyer with a cash register receipt with regard to transactions and/or operations considered to be VAT taxable object.
3. The VAT for the tax base of transactions prescribed by Article 65 of the Code shall be calculated at the rate of 0 per cent.
(Article 63 amended and supplemented by HO-266-N of 21 December 2017, amended by HO-285-N of 12 June 2024)
(Law HO-285-N of 12 June 2024 has a transitional provision)
CHAPTER 13
VALUE ADDED TAX BENEFITS AND ZERO-RATED TAXATION OF VALUE ADDED TAX
Article 64. Value added tax exempt transactions and operations
1. Exempting from VAT shall mean not calculating the VAT for the tax base of transactions and operations considered objects of VAT taxation as prescribed by Article 60 of the Code.
2. The following transactions and operations prescribed by Article 60 of the Code shall be exempt from VAT:
(1) provision of services of instruction at educational institutions of general education, child and youth creative and aesthetic centres, educational institutions of music, drawing, art and fine art, sports schools, vocational schools, educational institutions of qualification and re-qualification, secondary vocational and higher educational institutions. The concepts referred to in this point shall be used within the meaning and in the sense of the same concepts used in the Laws of the Republic of Armenia “On education”, “On general education” and “On higher and postgraduate professional education”;
(2) alienation of exercise books and music books, drawing books, children’s and school literature, school educational publications, scientific and educational publications published by higher educational institutions, specialised scientific organisations, the National Academy of Sciences of the Republic of Armenia. The scope of application of the benefits prescribed by this point shall be defined by the Government;
(3) carrying out scientific research and experimental development works in conformity with the criteria defined by the Government;
(4) carrying out activities within the framework of basic programmes of general education. The scope of application of the benefits prescribed by this point shall be defined by the Government;
(5) granting the right to participate in academic contests, tournaments, competitions of educational nature complying with standards recognised, guaranteed by the authorised body of the Republic of Armenia in the field of education and science and defined by the Government;
(6) provision of services relating to the keeping of children in preschool institutions, care for persons in boarding schools, orphanages, institutions for taking care of children with special needs or persons (children) with disabilities, nursing homes, as well alienation of goods made by the persons under care, performance of works, provision of services. The scope of application of the benefits prescribed by this point shall be defined by the Government;
(7) gratuitous supply of goods, gratuitous performance of works and/or gratuitous provision of services by non-governmental, charity, and religious organisations;
(8) performance of works at undertakings, cemeteries, and ceremony-related works carried out in relation to death and funeral, provision of services and alienation of related attributes;
(9) provision of services related to the organisation of religious ceremonies, alienation of religious attributes to religious organisations, as well as alienation of these attributes by religious organisations;
(10) import of goods, supply of goods, performance of works and provision of services by foreign countries, international intergovernmental (interstate) organisations, international, foreign non-governmental, charity, religious organisations, and similar organisations of the Republic of Armenia, by individual benefactors within the framework of humanitarian aid and charity programmes (activity), as well as supply of goods, performance of works and provision of services directly related to and of crucial importance to the implementation of such programmes. The classification of the programme (activity) as humanitarian aid and charity, as well as the framework of VAT exempt goods, works and services shall, pursuant to this point, be established by the Government, unless explicitly specified by the legislation of the Republic of Armenia (including international treaties of the Republic of Armenia);
(11) provision of medical aid and healthcare services, in particular, services related to the prevention of diseases, diagnosis, medical consultation, expert examination for treatment, rehabilitation purposes, medical expert examination;
(12) alienation of donated blood and the components thereof, breast milk, assistive technologies, medical devices and medical supplies, alienation of goods made by the patients within the framework of medical aid and healthcare services in the medical facilities. The scope of application of the benefits prescribed by this point shall be defined by the Government;
(13) property investment in the authorised or share capital by the state or the community;
(14) supply of goods to the state in the form of confiscation or donation. This point shall not extend to the transactions of supply of goods in the form of confiscation, in which case the transaction of supply of goods is subject to VAT taxation as prescribed by the Code;
(15) in case of voluntarily abandoning the land parcel, the alienation of the land parcel owned under the right of ownership to the community or the state;
(16) exchange of the land parcel or other immovable property where the party to that transaction is the state and/or the community;
(17) supply of goods, performance of works and/or provision of service within the framework of subsidy, subvention and grant programmes where the professional commission set up by the Government drew up a positive conclusion with regard to these programmes. The procedure of activities and the composition of the professional commission referred to in this point, as well as the procedures for qualifying, as preferred, changing and suspending the subsidy, subvention and grant programmes by the commission shall be prescribed by the Government;
(18) provision of services by the state administration bodies and/or local self-government bodies for which payment of state and/or local duty is prescribed by law, as well as supply of goods, performance of work and/or provision of service by state bodies and/or community governmental institutions for the part of the amount wherefrom the revenue has been credited to the state or community budgets. Within the meaning of this point, the crediting of the revenue or part thereof to the state or community budgets must be justified by the transfer thereof to the relevant treasury account;
(19) alienation of infrastructure assets owned by the concessioner (operator), outcome of improvement made in certain elements thereof or purchased or built or replaced infrastructure assets (tangible or intangible), certain elements within the composition thereof by the concessioner (operator) within the framework of conditions of transactions qualified by the authorised body of the Government as concession contract in accordance with the criteria defined by the Government Armenia during and at the end of the validity period of the concession contract, as well as provision of concession services to the grantor. For the purposes of this point:
a. concedent (grantor) shall mean a state or community body, which provides infrastructures of public services to the concessionaire (operator) for a certain period of time for the purpose of exploitation and/or service thereof;
b. concessionaire (operator) shall mean a resident organisation, which is provided with infrastructures of public services by the concedent (grantor) for the purpose of providing public service and/or improving it, and which exploits and/or carries out the maintenance of these infrastructures within the period of time prescribed;
(20) alienation of equipment and parts classified under CN FEA codes 8432, 8433, 8434, 8436, 8701, fertilizers classified under the codes of CN FEA 31 group, pesticides classified under the CN FEA codes 3808 91, 3808 92, 3808 93, 3808 94, 3808 99, bees classified under the CN FEA code 0106 41 000, insects useful for research purposes or for plant protection classified under the CN FEA code 0106 49 000, coconut (cashew nut) fiber-based substrates for growing plants and classified under the CN FEA code 1404 90 000 8, greenhouses classified under the CN FEA code 9406 90 310 0, as well as seeds and sprouts of crops and perennial seedlings;
(21) alienation by the direct manufacturer of hand-knotted carpets classified under CN FEA codes 5701 10, 5702 10 000 0 manufactured in the Republic of Armenia;
(22) alienation of irrigation water by water consumers companies;
(23) provision of services to an organiser of free economic zone and to an operator of free economic zone, performance of works for the organiser of free economic zone and operator of free economic zone, supply of goods within the territory of free economic zone;
(24) alienation of newspapers and magazines;
(25) alienation of precious and semi-precious stones specified in the list defined by the Government;
(26) alienation of precious metals (except for products (items) made of precious metals, including jewellery and other items), as well as half-finished products for use in jewellery made of precious metals and classified under CN FEA codes 7106, 7108, 7109 00 000 0, 7110, 7113, 7115;
(27) alienation of tobacco products by taxpayers not acting as a manufacturer of tobacco products and not acting as an importer of tobacco products, the maximum retail price whereof shall be subject to marking on the package of the tobacco products in the manner prescribed by the Government;
(28) alienation by a producer of a product containerised in a reusable returnable container of a reusable returnable container meeting the requirements prescribed by the Government;
(29) organisation of the operation of casinos;
(30) organisation of games of chance (including online games of chance), betting and internet betting;
(31) gratuitous provision of maintenance services with regard to the given goods within the warranty period prescribed the public contract for supply of goods, gratuitous supply of goods for the purpose of replacing the goods failing to comply with the quality determined within the framework of these services, elements complementing them, supply of goods and provision of services, the value of which is included in the value of goods supplied in accordance with the public contract. This may be applied where the conditions of the concluded contract comply with the requirements for public contracts prescribed by Article 442 of the Civil Code of the Republic of Armenia. Where the public contract or supply of goods envisages supply of other goods and/or provision of other services, the fact of including the value of other goods and/or services in the value of goods supplied under the public contract must be substantiated by the initial record-keeping documents applied in the accounting and documents approved by the VAT payer (order, calculation report of the approved cost, etc.);
(32) alienation of the right of ownership over a share or unit in the authorised or share capital of the organisation;
(33) supply of goods and/or provision of service within the framework of reorganisation of the organisation carried out as prescribed by law;
(34) supply of goods within the framework of transactions of privatisation and denationalisation;
(35) import of cultural values into the territory of the Republic of Armenia;
(36) supply of goods exported from the territory of the Republic of Armenia under the customs procedure other than "Export" (except for the cases of the application of the customs procedure "Re-export" to the goods imported under the customs procedure "Processing within the customs territory");
(37) import of goods into the territory of the Republic of Armenia from the states not considered to be EAEU members by the taxpayer having the status of an economic operator authorised as prescribed by the legislation or a group of resident income taxpayers implementing a programme approved by the Government, where these goods and products generated from the processing thereof are — within 180 days following the day of import — exported (including to the EAEU member states):
(38) supply of ferrous and non-ferrous scrap metals exported from the territory of the Republic of Armenia into the EAEU member states under the customs procedure “Export”;
(39) transactions of alienation of their personal property by the individual entrepreneur or notary;
(40) alienation of the property included in the composition of succession and belonging to the individual entrepreneur or notary to the heir;
(41) import by natural persons, arriving in the Republic of Armenia, of goods for personal use prescribed by the Law of the Republic of Armenia “On customs regulation”;
(42) import by natural persons, arriving in the Republic of Armenia for permanent residence, of goods for personal use prescribed by the Law of the Republic of Armenia “On customs regulation”;
(43) import by diplomats serving in diplomatic missions of the Republic of Armenia functioning in foreign states, and military, commercial and other diplomatic service attaches of the Republic of Armenia, citizens appointed to spiritual service by Mother See of Holy Etchmiadzin in dioceses of the Armenian Apostolic Church established in other countries of goods for their personal use prescribed by the Law of the Republic of Armenia “On customs regulation”, after completing the service;
(44) provision of services by insurance and reinsurance services, including related services by insurance brokers and agents;
(45) provision of pension security services, including related services provided by brokers and agents;
(46) alienation of assets to the securitisation fund or the seller by the originator within the meaning of the Law of the Republic of Armenia “On asset securitisation and asset-backed securities”, alienation of assets to the securitisation fund by the seller, repurchase of assets from the securitisation fund by the originator in cases prescribed by the Law of the Republic of Armenia “On asset securitisation and asset-backed securities” or exchange of assets with the securitisation fund, as well as alienation of assets to the securitisation fund established in accordance with the Law of the Republic of Armenia “On investment funds”, repurchase of assets from the securitisation fund or exchange of assets with the securitisation fund by the person having alienated the assets to the securitisation fund;
(47) performance of the following financial transactions and operations by banks, professional securities market participants, payment and settlement organisations, credit organisations, as well as in cases prescribed by this point, by other taxpayers:
a. provision of services related to accepting demand, term, savings and other similar deposits, opening, maintaining and carrying out the maintenance of bank and other accounts, including provision of payment and settlement services;
b. provision of services related to provision of loans or borrowings or property through leasing (types thereof) by banks, credit organisations and other taxpayers, including financing of debts or commercial transactions and other factoring services;
c. provision of services related to the of providing of suretyship, bank guarantees, issuing of letters of credit;
d. provision of services related to the alienation, custody and record-keeping of securities by banks, credit organisations and other taxpayers;
e. provision of services related to the issuing, discounting, transferring, conceding or servicing of promissory notes, cheques, bills of exchange, other payment securities, payment documents, cards and other instruments, as well as alienation of promissory notes, cheques, bills of exchange, other payment securities, payment documents;
f. alienation and exchange of foreign currency (paper money and coins, except for coins and bank-notes of numismatic value and used for that purpose) in Armenian Dram by banks, credit organisations and other taxpayers, alienation, transfer, exchange and otherwise alienation of derivative financial instruments concluded by banks, credit organisations and other taxpayers and making of all fees provided for by these transactions, except for the fees made for the actual supply of the property, the alienation of which is, pursuant to the Code, subject to VAT taxation;
g. provision of cash withdrawal services;
h. provision of services of investment fund management by banks, professional participants in the securities market and other taxpayers, including placement and/or repurchase (repayment) of securities issued by the investment fund managed thereby (including as a result of delegation);
i. provision of services of investment fund custody;
j. provision of services of securities trust management;
k. alienation of bank gold, opening and maintaining of bank gold accounts, provision of services related to the performance of other transactions thereby, as well as alienation of bank bullions to banks and credit organisations;
l. alienation of a collateral that became the property of a bank and credit organisation as prescribed by law and belonged to natural persons not acting as an individual entrepreneur and notary. For the purposes of this sub-point, the collateral shall be considered to be belonging to the natural persons not acting as individual entrepreneurs and notaries before becoming the property of a bank or credit organisation where the certificate of title over the collateral states that it belongs to the given individual entrepreneur or notary;
m. provision of services of receipt of amounts (revenues, compulsory, utility and other fees), as well as services related to salaries, pensions, benefits, insurance and other fees;
n. alienation through leasing (types thereof) of goods imported by banks and credit organisations to an organisation, individual entrepreneur or notary deemed value added taxpayers as of the date of delivery and acceptance of the object of leasing, within the framework of lease contract, during the import of which the VAT has not been calculated and paid as prescribed by the legislation;
o. provision of leasing (types thereof) service by banks and credit organisations where the contract on leasing (types thereof) does not envisage that the right of ownership to the object of leasing may be transferred to the lessee upon the expiration of the contract or prior to its expiration.
p. provision of investment services provided for by Article 25 of Law of the Republic of Armenia "On securities market", except for the consultation services provided to the customers with regard to the investments into the securities and derivative financial instruments;
q. provision of non-principal services provided for by Article 26 of Law of the Republic of Armenia "On securities market", except for provision of consultation and other services related to the reorganisation of companies, as well as consultations services provided to companies with regard to structure of capital, corporate strategy issues;
r. provision of services of organisation of trade through securities and derivative financial instruments by the operator of a regulated market (only with regard to commission fees levied for transactions), as well as services of determining and setting off (clearing) mutual obligations (claims) arising from the transactions concluded;
s. provision of services of depositing of securities by the Central Depository, keeping a register of the security holders (nominal holders), services related to clearing and final settlement, as well as other services (except for consultation services) permitted to the Central Depository by law or legal acts of the Central Bank of the Republic of Armenia, including the provision of mediation services of the said services by a member of the securities settlement system;
t. provision of services of ensuring bilateral price quotation of securities with a status of a market maker;
u. provision of the property for leasing (types thereof) by banks and credit organisations upon the contract on leasing (types thereof), at the time of acquisition of which the VAT was not calculated and paid as prescribed by the legislation form the transaction of property supply.
Drawing up and provision of account statements and other information related to services prescribed by this point, preparation of securities, cheques, bills of exchange, payment documents, cards, paper money, coins, bank gold and facsimile services shall not be exempt from VAT.
(48) services in the field of tourism provided to foreign tourists, as well as agency services provided by tourism agencies, provided that the tours, trips, excursions within the scope of such services are carried out within the territory of the Republic of Armenia;
(49) alienation by an investment fund of immovable property to a person holding participation in the given investment fund, if the immovable property has been earlier acquired by the investment fund from the given person as an investment against the equity or share in the investment fund.
(50) import by the organiser of a duty-free shop under the customs procedure "Release for domestic consumption" for the purpose of completing the customs procedure "Duty-free trade" of foreign goods sold to the persons referred to in the sub-point 3 of point 2 of Article 243 of the Customs Code of the Eurasian Economic Union approved by Annex No 1 of the Treaty on Customs Code of the Eurasian Economic Union of 11 April 2017.
(51) import of goods, having the status of EAEU product, from EAEU member states to the duty-free shops operating in the Republic of Armenia.
(52) (point repealed by HO-63-N of 7 June 2019, was effective from 1 July 2019 until 1 January 2022 in accordance with Article 2 of law HO-63-N of 7 June 2019)
(53) alienation of live pure-bred cattle raised in the Republic of Armenia, in the territory of the Republic of Armenia;
(54) supply of goods, performance of work and/or provision of services within the scope of the types of activities prescribed by Articles 19.7 and 19.8 of the Law of the Republic of Armenia "On state duty".
(55) alienation of space objects and equipment, their repair or modernisation, transmission and processing of satellite data from remote observation of the Earth, launch of space objects, provision of management services during landing and flight and/or performance of works up to 31 December 2030;
(56) provision of services prescribed by Law of the Republic of Armenia "On Financial System Mediator" by the Office of the Financial System Mediator.
(57) (point was effective until 1 January 2024, in accordance with Article 2 of Law HO-370-N of 10 December 2021)
(58) import and/or alienation of vehicles equipped with electric engine, categorised under EAEU CN FEA codes 8702 40 000, 8703 80 000 and 8711 60 from 1 January 2024 until 1 January 2026.
(Article 64 edited, amended and supplemented by HO-266-N of 21 December 2017, edited by HO-124-N of 8 February 2018, amended by HO-261-N of 23 March 2018, HO-338-N of 21 June 2018, supplemented by HO-68-N of 25 June 2019, HO-87-N of 19 June 2019, amended by HO-54-N of 21 January 2020, supplemented by HO-82-N of 24 January 2020, HO-153-N of 6 March 2020, HO-293-N of 3 June 2020, amended and supplemented by HO-321-N of 18 June 2020, amended by HO-215-N of 26 May 2021, HO-63-N of 7 June 2019, supplemented by HO-370-N of 10 December 2021, amended by HO-355-N of 14 September 2022, edited and amended by HO-517-N of 7 December 2022, supplemented by HO-120-N of 22 March 2023, edited by HO-131-N of 13 April 2023, supplemented by HO-383-N of 22 November 2023, amended by HO-353-N of 2 October 2024, HO-499-N of 4 December 2024)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-321-N of 18 June 2020 has a transitional provision)
(Law HO-82-N of 24 January 2020 has a transitional provision)
(Law HO-293-N of 3 June 2020 has a transitional provision)
(Law HO-215-N of 26 May 2021 has a transitional provision)
(Law HO-370-N of 10 December 2021 has a transitional provision)
(Law HO-517-N of 7 December 2022 has a final part and transitional provisions)
(Law HO-120-N of 22 March 2023 has a final part and transitional provisions)
(Law HO-131-N of 13 April 2023 has got a final part and a transitional provision)
(Point 58 of part 2 of the Article shall enter into force upon the supplement to Article 1 of Law HO-383-N of 22 November 2023 from 1 January 2024 and shall be effective until 1 January 2026)
(Article as amended by Law HO-269-N of 12 June 2024 shall enter into force on the day the Law “On regulation of gambling activities” is put into full effect)
(Article as amended by Law HO-499-N of 4 December 2024 shall enter into force on 1 January 2025 and shall be effective until 31 December 2031, according to part 1 of Article 8 of the same Law)
(Law HO-499-N of 4 December 2024 has a transitional provision)
Article 65. Transactions taxable at zero rate of VAT
1. Taxation at zero rate of VAT shall be the calculation of VAT at zero percent rate with respect to the tax base of transactions deemed to be VAT taxable objects prescribed by Article 60 of the Code.
2. The following transactions, prescribed by Article 60 of the Code, shall be taxable at zero percent rate of VAT:
(1) supply of goods (except for ferrous and non-ferrous scrap metals) exported from the territory of the Republic of Armenia through customs procedure “Export”;
(2) supply of goods (except for ferrous and non-ferrous scrap metals), having the status of EAEU product, exported from the territory of the Republic of Armenia into EAEU member state in case of submitting the document prescribed by part 1 of Article 76 of the Code to the tax authority;
(3) packaging, loading, unloading, accompanying of goods and other similar works performance and/or provision of services directly related to transactions prescribed by points 1 and/or 2 of this part;
(4) provision of international transport services related to the transportation of cargo, mail and/or passengers. Within the meaning of this point:
a. transport services related to the transportation of cargo, mail and/or passengers via any type of vehicle shall be deemed to be international, where it starts in the Republic of Armenia and ends outside the territory of the Republic of Armenia or where it starts outside the territory of the Republic of Armenia and ends in the territory of the Republic of Armenia;
b. intermediary activities for organising the transportation of cargo, mail and/or passengers through (with the involvement of) other organisations and/or natural persons shall also be deemed to be transport services;
(5) performance of works and/or provision of services related to raw material processing in case of export of goods made from the raw material imported into the Republic of Armenia through customs procedure “Processing within the customs territory” for the purpose of processing or imported into the Republic of Armenia from EAEU member states for the purpose of processing, as prescribed by the EAEU unified customs legislation;
(6) in case of export of the property imported into the Republic of Armenia through customs procedure “Processing within the customs territory” for the purpose of mending (repairing) or imported into the Republic of Armenia from EAEU member states for the purpose of mending (repairing) as prescribed by the EAEU unified customs legislation, the supply of spare parts, parts, components, other supplementary elements used for repairing that property by the mender (repairer);
(7) performance of works and/or provision of services directly related to the transportation of goods — imported into the Republic of Armenia through customs procedure “Customs transit” — from the customs authority of import into the Republic of Armenia to the customs authority of export from the Republic of Armenia;
(8) with regard to aircrafts making flights via international routes:
a. supply of fuel required for fuelling up and goods intended for the consumption by the aircraft crew and passengers during the entire route;
b. performance of works and/or provision of services related to support (including air navigation, take off-landing), mending, re-equipment, handling of passengers, luggage, cargo and mail, provision of services to passengers during the transportation;
(9) provision of intermediary services that are directly related to and ensure the provision of services referred to in point 8 of this part;
(10) retail sale of goods at duty-free shops to passengers leaving or arriving via international routes, as well as supply of goods designated for sale at the duty-free shop by other taxpayers to the organiser of the duty-free shop;
(11) the performance of works and/or provision of services, the place of performance and/or provision whereof shall not be deemed to be the Republic of Armenia pursuant to Article 38 of the Code;
(12) supply of goods to diplomatic representations and consular offices accredited in the Republic of Armenia, international organisations equivalent thereto (hereinafter referred to as “diplomatic representations”), performance of works for and/or provision of services to them.
The zero percent rate of VAT with respect to the transactions prescribed by this point shall apply only to those diplomatic representations, according to the legislation of which the application of the zero percent rate of VAT is prescribed for the diplomatic representation of the Republic of Armenia in the given country, or where such procedure is provided for by international treaties of the Republic of Armenia.
For the purpose of ensuring the application of this point, the Ministry of Foreign Relations of the Republic of Armenia shall submit the lists of diplomatic representations prescribed by this point and changes being made thereto to the tax authority in the manner prescribed by the Government. The tax authority shall post on its official website the lists and changes being made thereto referred to in this paragraph.
In cases prescribed by this point:
a. the application of the zero percent rate of VAT shall be substantiated by VAT payer supplying goods, performing works and/or providing services through issuance of the relevant billing documents as prescribed by Article 56 of the Code;
b. the application of the zero percent rate of VAT and compensation — provided to diplomatic representations — of the VAT amount included in the prices of the goods acquired, works accepted and/or services received by them, shall be carried out as prescribed by the Government, where instead of issuing billing documents with respect to transactions referred to in this point tax invoices or cash register machine receipts have been issued;
(13) provision of services — to relevant operators by the operator of telecommunications or postal service registered in the Republic of Armenia in the prescribed manner — with respect to which pursuant to the Constitution of the International Telecommunications Union (ITU) or the Constitution of the Universal Postal Union, respectively, mutual settlement of amounts subject to payment for services provided to each other within the scope of international connectivity services shall be carried out.
(Article 65 amended by HO-266-N of 21 December 2017, amended by HO-261-N of 23 March 2018, supplemented by HO-338-N of 21 June 2018)
(Law HO-338-N of 21 June 2018 has a transitional provision)
CHAPTER 14
CALCULATION OF VALUE ADDED TAX
(Chapter as amended by Article 14 of Law HO-68-N of 25 June 2019 shall enter into force on 1 January 2020)
Article 66. Issuance of tax invoices and adjusting tax invoices
1. VAT payers shall — in cases prescribed by Article 56 of the Code — be obliged to issue tax invoices, and in cases prescribed by Article 42 of the Code — also adjusting tax invoices (hereinafter referred to as “tax invoices” in this Section).
2. Irrespective of the provisions of part 1 of this Article, tax invoices shall not be issued in cases prescribed by points 1-5 of part 1 of Article 67.
Article 67. Restrictions on issuance of tax invoices
1. Tax invoices shall not be issued:
(1) by those who are not deemed to be VAT payers with respect to the transactions performed during the reporting periods of not being deemed to be a VAT payer. The effect of this point does not extend to cases, where the tax invoice is issued by an organisation or individual entrepreneur — on behalf of the delegator deemed to be a VAT payer or a principal deemed to be a VAT payer, respectively — deemed to be a delegatee or agent, supplying goods or performing works or providing services through agency contracts that provide for the condition of acting on behalf of a delegation or principal;
(2) with respect to the transactions on supplying goods, performing works and/or providing services that are exempt from VAT;
(3) with respect to the transactions on supplying goods, performing works and/or providing services that are subject to taxation at zero percent rate of VAT;
(4) with respect to the transactions on supplying goods, performing works and/or providing services carried out within the scope of special tax systems prescribed by Section 13 of the Code;
(5) with respect to the transactions on supplying goods and providing services which pursuant to parts 2 and 3 of Article 60 of the Code, respectively, shall not be deemed to be a VAT taxable object.
2. Tax bills instead of tax invoices shall be drawn up in cases prescribed by part 1 of this Article, and shall be issued in cases and in the manner prescribed by Article 56 of the Code.
3. Where a VAT payer simultaneously performs any transaction prescribed by points 2-5 of part 1 of this Article and a transaction with respect to which a tax invoice must be issued, he or she may also include the transaction prescribed by points 2-5 of part 1 of this Article in the tax invoice.
(Article 67 supplemented and amended by HO-338-N of 21 June 2018)
(Law HO-338-N of 21 June 2018 has a transitional provision)
Article 68. Confirmation of tax invoices
1. VAT payers shall confirm by electronic signature the tax invoices issued by suppliers and those performing works and providing services (hereinafter referred to as “suppliers” in this Section) with respect to the goods acquired, works accepted and services received during the reporting period.
2. In the case prescribed by part 2 of Article 70 of the Code the issuance of tax invoice as prescribed by part 7 of Article 56 of the Code shall be deemed to be a confirmation of the given tax invoice by electronic signature.
Article 69. Reporting period
1. Every reporting month shall be deemed to be a reporting period for the calculation and payment of VAT, except for cases prescribed by part 2 of this Article.
2. Every reporting quarter shall be deemed to be a reporting period for the calculation and payment of VAT by a non-resident organisation not having a permanent establishment in the Republic of Armenia and registered with the tax authority in accordance with the procedure prescribed by parts 9.1 and 9.2 of Article 288 of the Code.
(Article 69 supplemented by HO-359-N of 17 November 2021, amended by HO-595-N of 23 December 2022)
(Law HO-595-N of 23 December 2022 has a transitional provision)
Article 70. Procedure for calculation of the amount of value added tax subject to payment to the State Budget
1. VAT payers shall pay for the reporting period the positive difference of VAT amounts calculated with respect to the tax base of transactions, performed during that period, considered to be taxable objects prescribed by points 1 and 2 of part 1 of Article 60 of the Code and of VAT amounts offsetable (reducible) as prescribed by Article 71 of the Code (unless otherwise prescribed by Article 72 of the Code) to the State Budget.
2. The obligation for VAT calculation and payment in the manner and within the time limits prescribed by the Code with respect to VAT taxable transactions and operations on supply of goods, performance of works and/or provision of services carried out in the Republic of Armenia by a non-resident organisation lacking a permanent establishment in the Republic of Armenia, as well as on importing goods owned by the right of ownership by that non-resident organisation or non-resident natural person lacking a permanent establishment in the Republic of Armenia, to the Republic of Armenia (including from EAEU member states) shall be borne by VAT payers acting as a party to contractual relations, instead of that non-resident organisation or non-resident natural person, as a tax agent.
In cases prescribed by this Part:
(1) the tax base of VAT taxable transactions and operations shall be determined as prescribed by Articles 61 and 62 of the Code;
(2) VAT taxable transactions shall be deemed to be performed in the Republic of Armenia, where the place of delivery of goods pursuant to Article 37 of the Code and the place of performing the works or providing services pursuant to Article 39 of the Code shall be deemed to be the Republic of Armenia;
(3) VAT threshold shall not be considered during the calculation of VAT with respect to VAT taxable transactions;
(4) VAT payer acting as a party to contractual relations shall be exempt from the obligation for VAT calculation and payment, where it is substantiated by import documents (including by tax declaration of import or customs declaration of import) that the import has been carried out on behalf of the VAT payer irrespective of the fact of transfer of the right of ownership to the goods in the territory of the Republic of Armenia;
(5) the obligation for VAT calculation and payment in the manner and within the time limits prescribed by the Code shall be borne by a non-resident organisation lacking a permanent establishment in the Republic of Armenia, where a party to contractual relations shall be deemed to be an entity of micro-entrepreneurship or turnover taxpayer, or where the non-resident organisation not having a permanent establishment in the Republic of Armenia provides, in accordance with the procedure prescribed by part 9.1 of Article 288 of the Code, electronic services to a natural person who is not an individual entrepreneur or a notary, or a non-resident organisation of another EAEU member state having no permanent establishment in the Republic of Armenia or an individual entrepreneur operating electronic trading platform supplies goods to a natural person who is not an individual entrepreneur or a notary within the scope of electronic trading.
(Article 70 amended by HO-338-N of 21 June 2018, HO-68-N of 25 June 2019, supplemented by HO-359-N of 17 November 2021, amended and supplemented by HO-595-N of 23 December 2022)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-595-N of 23 December 2022 has a transitional provision)
Article 71. Procedure for offsets (reductions) of value added tax
1. VAT offsetable (reducible) amounts shall be:
(1) separate VAT amounts in tax invoices (including in cases, where the date of issuance of the tax invoice is included in any reporting period preceding or following the reporting period, however, the transaction referred to in the tax invoice has been performed (i.e. the date of supply of goods, performance of works or provision of services referred to in the tax invoice is included) during that reporting period)), issued by the suppliers of goods acquired, works accepted and/or services received during the reporting period in the territory of the Republic of Armenia. VAT amounts prescribed by this point shall be offset (reduced):
a. by unified calculation report of VAT and excise tax submitted to the tax authority for the reporting period that includes the day of acquiring goods, accepting works and/or receiving services, where the tax invoice, issued by suppliers, pertaining to the relevant transaction has been confirmed by the person acquiring the goods, accepting the work and/or receiving the service as prescribed by part 1 of Article 68 of the Code prior to and including the deadline, prescribed by part 1 of Article 75 of the Code, for the submission of the unified calculation report of VAT and excise tax;
b. by unified calculation report of VAT and excise tax submitted to the tax authority for the reporting period that includes the day of confirming the tax invoice — issued by suppliers, pertaining to the relevant transaction — by the person acquiring the goods, accepted the work and/or received the service as prescribed by part 1 of Article 68 of the Code, where the tax invoice has not been confirmed prior to and including the deadline prescribed by part 1 of Article 75 of the Code for the submission of the unified calculation report of VAT and excise tax;
(2) VAT amounts (in case of partial payment — partially paid VAT amounts) calculated and paid in the manner and amount prescribed by the Code for goods imported into the territory of the Republic of Armenia through customs procedure “Release for domestic consumption”. VAT amounts prescribed by this point shall be offset (reduced):
a. by unified calculation report of VAT and excise tax submitted to the tax authority for the reporting period that includes the day of the registration of customs declaration of import of goods, where VAT amounts have been paid before the last day of the reporting period inclusive, covering the day of registration of the customs declaration;
а.1. in case the day of registration of the customs declaration on import of goods and the day of payment of VAT amounts fall into different reporting periods — by unified calculation report of VAT and excise tax submitted to the tax authority for the reporting period that includes the day which is later of the two dates;
b. in case of submitting verified customs declaration of import of goods as prescribed by the EAEU unified customs legislation, by unified calculation report of VAT and excise tax, with respect to the additional VAT amount subject to offset (reduction), submitted to the tax authority for the reporting period that includes the days of the registration of the verified customs declaration of import and the days of the payment of additional VAT amounts, and — in case those days are included in different reporting periods — for the reporting period that includes the last of those days;
c. (sub-point repealed by HO-383-N of 10 December 2021)
d. in case of imposing additional liability with respect to VAT as a result of post-release checks carried out by the tax authority on import of goods, by unified calculation report of VAT and excise tax, in the VAT amount paid, submitted to the tax authority for the reporting period that includes the day of the fulfilment of that liability (including partial);
(3) VAT amounts calculated and paid in the manner and amount prescribed by the Code for goods, having the status of EAEU product, imported into the Republic of Armenia from EAEU member states. VAT amounts prescribed by this point shall be offset (reduced):
a. by unified calculation report of VAT and excise tax submitted to the tax authority for the reporting period that includes the day of importing the goods into the territory of the Republic of Armenia (crossing the state border of the Republic of Armenia), where the tax declaration of import of goods has been submitted to the tax authority and VAT amounts (in case of partial payment, partially paid VAT amounts) with respect to import have been paid prior to and including the last day of the reporting period that includes the day of importing the goods into the territory of the Republic of Armenia (crossing the state border of the Republic of Armenia);
b. by unified calculation report of VAT and excise tax submitted to the tax authority for the reporting period that includes the days of the submission of customs declaration of import of goods to the tax authority and the days of the payment of VAT amounts, and in case those days are included in different reporting periods — for the reporting period that includes the last of those days, including the cases prescribed by sub-point “d” of this point, where the customs declaration of import of goods has not been submitted to the tax authority and/or VAT amounts with respect to import have not been paid prior to and including the last day of the reporting period that includes the day of importing the goods into the territory of the Republic of Armenia (crossing the state border of the Republic of Armenia);
c. in case of submitting verified tax declaration of import of goods as prescribed by the EAEU unified customs legislation or the Code, by unified calculation report of VAT and excise tax, with respect to the additional VAT amount subject to offset (reduction), submitted to the tax authority for the reporting period that includes the days of the submission of verified tax declaration of import and the days of the payment of additional VAT amounts, and — in case those days are included in different reporting periods — for the reporting period that includes the last of those days;
d. (sub-point repealed by HO-383-N of 10 December 2021)
e. in case of imposing additional liability with respect to VAT on the import of goods as a result of the inspection carried out by the tax authority, by unified calculation report of VAT and excise tax, in the additional VAT amount paid, submitted to the tax authority for the reporting period that includes the day of the fulfilment of that liability (including partial);
(4) separate VAT amounts in tax invoices, issued by VAT payers, as prescribed by part 7 of Article 56 of the Code, with respect to goods acquired, works accepted and/or services received in the territory of the Republic of Armenia during the reporting period from a non-resident organisation lacking a permanent establishment in the Republic of Armenia. VAT amounts prescribed by this point shall be offset (reduced):
a. by unified calculation report of VAT and excise tax, submitted to the tax authority for the reporting period that includes the day of acquiring goods, accepting works and/or receiving services, where the tax invoice pertaining to the relevant transaction has been issued prior to and including the deadline, prescribed by part 1 of Article 75 of the Code, for the submission of the unified calculation report of VAT and excise tax;
b. by unified calculation report of VAT and excise tax, submitted to the tax authority for the reporting period that includes the day of the issuance of the tax invoice pertaining to the relevant transaction, where the tax bill has been issued after the deadline, prescribed by part 1 of Article 75 of the Code, for the submission of the unified calculation report of VAT and excise tax;
(5) separate VAT amounts in tax invoices issued on behalf of commission agent or agent, respectively, by commission principal or principal with respect to the transactions performed between commission principal and commission agent or principal and agent based on agency contracts providing for the condition of acting on behalf of the commission or agent under the rules prescribed by sub-points “a” and “b” of point 1 of this part;
(6) separate VAT amounts in tax invoices issued on behalf of commission principal or principal, respectively, by commission agent or agent with respect to transactions performed between commission agent and commission principal or agent and principal based on agency contracts providing for the condition of acting on behalf of the commission or agent under the rules prescribed by sub-points “a” and “b” of point 1 of this part;
(7) separate VAT amounts in tax invoices issued on behalf of third party by commission agent or agent, respectively, with respect to transactions performed between commission agent and third party or agent and third party based on agency contracts providing for the condition of acting on behalf of the commission or agent under the rules prescribed by sub-points “a” and “b” of point 1 of this part;
(8) separate VAT amounts in tax invoices issued on behalf of commission agent or agent, respectively, by third party with respect to the transactions performed between third party and commission agent or third party and agent based on agency contracts providing for the condition of acting on behalf of the commission or agent, under the rules prescribed by sub-points “a” and “b” of point 1 of this part;
(9) separate VAT amounts in tax invoices, customs and tax declarations of import with respect to acquisitions, included in the composition of property assigned for trust management and carried out for the purpose of the performance of those transactions under the rules prescribed by this Article.
(Article 71 supplemented by HO-266-N of 21 December 2017, amended by HO-338-N of 21 June 2018, edited by HO-68-N of 25 June 2019, amended by HO-383-N of 10 December 2021, supplemented, edited by HO-257-N of 15 June 2022, amended by HO-101-N of 1 March 2023)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-383-N of 10 December 2021 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
Article 72. Restrictions on offsets (reductions)
1. For the purpose of calculation of VAT amounts subject to payment to the budget or subject to compensation from the budget as prescribed by Articles 70 and 74 of the Code, VAT offsets (reductions) shall not be made:
(1) by those who are not deemed to be VAT payers;
(2) where the acquired and/or imported goods, accepted works and/or received services are attributed to transactions exempt from VAT, except for cases prescribed by points 19 and 31 of part 2 of Article 64 of the Code, as well as transactions for alienation of precious metals classified under the CN FEA code 7108 12 000 9 of CN FEA 7108 group prescribed by point 26 of part 2 of Article 64 of the Code, where VAT offsets (reductions) are carried out as prescribed by the Code, irrespective of the fact of attributing the acquired and/or imported goods, accepted works and/or received services to transactions exempt from VAT;
(3) where the acquired and/or imported goods, accepted works and/or received services are attributed to transactions subject to taxation within the scope of special taxation systems prescribed by Section 13 of the Code;
(4) where the acquired and/or imported goods, accepted works and/or received services are attributed to transactions which pursuant to parts 2 and 3 of Article 60 of the Code, are not deemed to be VAT taxable objects;
(5) where the acquired and/or imported goods, accepted works and/or received services are attributed to the transaction pertaining to the tax invoice issued in violation of one of the restrictions prescribed by Article 67 of the Code;
(6) where the tax invoice is deemed to be a paper-transfer document pursuant to point 55 of part 1 of Article 4 of the Code;
(7) where the transaction pertaining to the tax invoice has been declared invalid pursuant to Article 41 of the Code;
(8) (point repealed by HO-358-N of 16 November 2023)
(9) in the amount of the negative difference of the VAT arising from the transaction for alienation of the object of leasing held by the lessor, subject to payment to the Budget and the amounts of VAT reformulated through the procedure prescribed by part 4 of Article 73 of the Code, where the given object of leasing had — prior to alienation — been provided upon the contract on leasing (types thereof), which did not provide that the right of ownership over the object of leasing may — upon expiration of the contract or prior to its expiration — pass on to the lessee;
(10) (point repealed by HO-358-N of 16 November 2023).
(Article 72 amended by HO-266-N of 21 December 2017, HO-338-N of 21 June 2018, supplemented by HO-321-N of 18 June 2020, HO-131-N of 13 April 2023, amended by 16 November 2023)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-321-N of 18 June 2020 has a transitional provision)
(Law HO-131-N of 13 April 2023 has a final part and a transitional provision)
(Law HO-358-N of 16 November 2023 has a final part and transitional provisions)
Article 73. Procedure for reformulation of liabilities and offsets (reductions)
1. Where acquiring and importing goods (including building a fixed asset), accepting works or receiving services (hereinafter referred to as “acquisitions” in this Section) are directly attributed to transactions subject to taxation at 20 or 0 percent rate of VAT (hereinafter referred to as “VAT taxable transactions” in this Section) or where it is impossible to directly attribute them to VAT taxable transactions or transactions prescribed by points 2-4 of part 1 of Article 72 of the Code (hereinafter referred to as “VAT non-taxable transactions” in this Section), the offset (reduction) of VAT amounts with respect to those acquisitions shall be carried out during the reporting period of the performance of the acquisitions as prescribed by the Code.
2. Where the acquisitions, with respect to which the offset (reduction) of VAT amounts has been carried out during the previous reporting periods as prescribed by the Code, are attributed fully or partially to VAT non-taxable transactions during the next reporting periods, then:
(1) with respect to goods (except for the fixed asset), work or service:
a. offset (reduced) VAT amounts shall be subject to reformulation — deduction from the amounts subject to offset (reduction) during the reporting period — in the amount calculated at 20 percent rate of VAT against the value corresponding to the share directly attributed to VAT non-taxable transactions during the given reporting period;
b. offset (reduced) VAT amounts shall be subject to reformulation — deduction from the amounts subject to offset (reduction) during the reporting period — in the tax amount determined by the coefficient corresponding to the share of the tax base of VAT non-taxable transactions within the common tax base of all transactions performed during the reporting period, where during the reporting period the given goods, work or service are attributed to VAT taxable and VAT non-taxable transactions, and where it is impossible to directly attribute the given goods, work or service to VAT taxable and VAT non-taxable transactions;
c. offset (reduced) VAT amounts shall be subject to reformulation — deduction from the amounts subject to offset (reduction) during the reporting period — in the amount calculated at 20 percent rate of VAT against the tax base corresponding to the share not attributed to VAT taxable transactions on the given goods, work or service, where the supply of goods, performance of work or provision of service during the reporting period is a VAT non-taxable transaction;
(2) with respect to fixed asset or intangible asset:
a. offset (reduced) VAT amounts shall be subject to reformulation — deduction from the amounts subject to offset (reduction) during the reporting period — in the amount calculated at 20 percent rate of VAT against the amount of amortisation deductions calculated for the given fixed asset or intangible asset in the amounts prescribed for the given reporting period by Article 121 of the Code, where the use of that fixed asset or intangible asset during the given reporting period has been attributed exclusively to VAT non-taxable transactions;
b. offset (reduced) VAT amounts shall be subject to reformulation — deduction from the amounts subject to offset (reduction) during the reporting period — in the amount of the product of the amount calculated at 20 percent rate of VAT against the amount of amortisation deductions calculated for the given fixed asset or intangible asset in the amounts prescribed for the given reporting period by Article 121 of the Code and of the coefficient corresponding to the share of the tax base of VAT non-taxable transactions within the common tax base of all transactions performed during the reporting period, where the given fixed asset or intangible asset is simultaneously attributed to both VAT taxable and VAT non-taxable transactions during the reporting period;
c. offset (reduced) VAT amounts shall be subject to reformulation — deduction from the amounts subject to offset (reduction) during the reporting period — in the amount calculated at 20 percent rate of VAT against the book value of the given fixed asset or intangible asset, where the alienation of the given fixed asset or intangible asset during the reporting period is a VAT non-taxable transaction.
3. Where the acquisitions are directly attributed to VAT non-taxable transactions, VAT amounts with respect to those acquisitions shall not be subject to offset (reduction) during the reporting period of the performance of those acquisitions.
4. Where the acquisitions, with respect to which deduction of VAT offsetable (reducible) amounts has been carried out (VAT amounts have been added to the value of acquisitions as prescribed by Section 6 of the Code) during the previous reporting periods as prescribed by the Code, are attributed fully or partially to VAT taxable transactions during the next reporting periods, then:
(1) with respect to goods (except for the fixed asset), work or service:
a. non-offset (non-reduced) VAT amounts shall be subject to reformulation — to being added to the amounts subject to offset (reduction) during the reporting period — in the amount calculated at 16.67 percent settlement rate of VAT against the value corresponding to the share directly attributed to VAT taxable transactions during the given reporting period;
b. non-offset (non-reduced) VAT amounts shall be subject to reformulation — to being added to the amounts subject to offset (reduction) during the reporting period — in the tax amount determined by the coefficient corresponding to the share of the tax base of VAT non-taxable transactions within the common tax base of all transactions performed during the reporting period, where during the reporting period the given goods, work or service are attributed to VAT taxable and VAT non-taxable transactions, and where it is impossible to directly attribute the given goods, work or service to VAT taxable and VAT non-taxable transactions;
c. non-offset (non-reduced) VAT amounts shall be subject to reformulation — to being added to the amounts subject to offset (reduction) during the reporting period — in the amount calculated at 16.67 percent settlement rate of VAT against the tax base corresponding to the share not attributed to VAT non-taxable transactions on the given goods, work or service, where the supply of goods, performance of work or provision of service during the reporting period is a VAT taxable transaction;
(2) with respect to fixed asset or intangible asset:
a. non-offset (non-reduced) VAT amounts shall be subject to reformulation — to being added to the amounts subject to offset (reduction) during the reporting period — in the amount calculated at 16.67 percent settlement rate of VAT against the amount of amortisation deductions calculated for the given fixed asset or intangible asset in the amounts prescribed for the given reporting period by Article 121 of the Code, where the use of that fixed asset or intangible asset during the given reporting period has been attributed exclusively to VAT taxable transactions;
b. non-offset (reduced) VAT amounts shall be subject to reformulation — to being added to the amounts subject to offset (reduction) during the reporting period — in the amount of the product of the amount calculated at 16.67 percent settlement rate of VAT against the amount of amortisation deductions calculated for the given fixed asset or intangible asset in the amounts prescribed for the given reporting period by Article 121 of the Code and of the coefficient corresponding to the share of the tax base of VAT taxable transactions within the common tax base of all transactions performed during the reporting period, where the given fixed asset or intangible asset is simultaneously attributed to both VAT taxable and VAT non-taxable transactions during the reporting period;
c. non-offset (non-reduced) VAT amounts shall be subject to reformulation — to being added to the amounts subject to offset (reduction) during the reporting period — in the amount calculated at 16.67 percent settlement rate of VAT against the book value of the given fixed asset or intangible asset, where the alienation of the given fixed asset or intangible asset during the reporting period is a VAT taxable transaction.
5. Where the offset (reduction) of the amount, determined as prescribed by this Article, subject to offset (reduction) is postponed upon the grounds prescribed by Article 71 of the Code, the offset (reduction) of those amounts shall be carried out during the reporting periods when the right thereto arose, based on the portions of the tax bases of VAT taxable and VAT non-taxable transactions performed during the reporting period of the performance of the relevant acquisitions, without taking account of the portions of the tax bases of VAT taxable and VAT non-taxable transactions performed during the reporting period when the right to offset (reduction) arose.
6. In case of the loss of acquisitions of VAT payers, the VAT amounts pertaining to those acquisitions shall not be subject to offset (reduction), where those loses are not subject to deduction from gross income for the purpose of taxation pursuant to Section 6 of the Code. Pursuant to Section 6 of the Code, in case the value of loss is determined on annual basis, the VAT offsetable (reducible) amount calculated more or less as compared with the annual norm of loss within each reporting period of VAT shall be recalculated by annual output during the last reporting period of VAT of the given year, considering the difference as an increase or reduction of VAT offsetable (reducible) amount during the last reporting period.
7. In case of liquidation of the fixed asset by VAT payers, with respect to which offset (reduction) of VAT amounts has been carried out during the previous reporting periods as prescribed by the Code, VAT offset (reduced) amounts shall be subject to reformulation — deduction from the amounts subject to offset (reduction) during the reporting period — in the amount calculated at 20 percent rate of VAT against the book value of the given fixed asset.
In case the fixed asset referred to in this part is later on alienated as a fixed asset of the same designated purpose, VAT amounts deducted from the amounts subject to offset (reduction) as prescribed by this part shall again be subject to reformulation — to being added to the amounts subject to offset (reduction) during the reporting period that includes the day of alienation, where the alienation of the fixed asset during the reporting period is a VAT taxable transaction.
8. (part repealed by HO-358-N of 16 November 2023)
8.1. The negative difference of VAT generated between the VAT amount calculated against the tax base with respect to delivery in the Republic of Armenia of a motor vehicle classified under CN FEA 8703 code, except for motor vehicle classified under CN FEA 8703 code and being alienated in accordance with part 21 of Article 62 of the Code and the separate VAT amount for that motor vehicle subject to offset (reduction) in the manner prescribed by the Code in the tax account issued by the supplier or customs declaration or tax declaration of import shall not be subject to offset (reduction). The VAT amounts prescribed by this part, which are not being offset (reduced), shall be subject to reformulation — to being deducted from the amounts subject to offset (reduction) during the reporting period — by unified calculation report of VAT and excise tax submitted to the tax authority for the reporting period that includes the day of alienation of the motor vehicle.
Where the motor vehicle classified under CN FEA 8703 code has been acquired by contract on leasing (types thereof), upon expiration of or prior to expiration of which the right of ownership over the object of leasing has been transferred to the lessee, when alienating this motor vehicle, in accordance with the first paragraph of this part, for the purpose of calculating the negative amount of VAT with the lessee, the VAT amount subject to offset (reduction) in the manner prescribed by the Code for purchase of motor vehicle deemed to be an object of leasing and classified under CN FEA 8703 code shall be determined by the sum total of VAT amounts separated by the lessor in tax accounts issued in the manner prescribed by the Code during the validity of the contract on leasing (types thereof).
9. Where separate VAT amounts in customs or tax declaration of import submitted previously by the verified customs or tax declaration of import of goods (including those imported from EAEU member states), submitted as prescribed by the EAEU unified customs legislation or the Code, decrease, the difference of separate VAT amounts in customs or tax declaration of import and in verified customs or tax declaration of import shall be deducted from VAT amounts subject to offset (reduction) by unified calculation report of VAT and excise tax submitted to the tax authority for the reporting period that includes the day of the registration or submission to the tax authority of the verified customs or tax declaration of import.
10. Where separate VAT amounts in customs declaration of import decrease as a result of post-release checks carried out by the tax authority on import of goods, the decreased part of separate VAT amounts in customs declaration of import shall be deducted from VAT amounts subject to offset (reduction) by unified calculation report of VAT and excise tax submitted to the tax authority for the reporting period that includes the day of drawing up of an act of post-release checks.
11. In case of removing the individual entrepreneur from record-registration or dismissing the notary from position, VAT amounts previously offset (reduced) with respect to assets (except for fixed assets and intangible assets) available as of the day of removing the individual entrepreneur from record-registration or dismissing the notary from position, respectively, and with respect to fixed assets and intangible assets — the share of previously offset VAT amounts that corresponds to the book value of the fixed asset or intangible asset as of the day of removing the individual entrepreneur from record-registration or dismissing the notary from position shall be deduced from VAT amounts subject to offset (reduction) by the unified calculation report of VAT and excise tax submitted for the last time, acting as a VAT payer, to the tax authority prior to removal from record-registration or dismissal of the notary from position. This part shall also apply in the case, where at the moment of removal from record-registration, the individual entrepreneur is deemed to be a turnover tax payer or an entity of micro-entrepreneurship.
12. (part repealed by HO-101-N of 1 March 2023)
13. With respect to VAT amounts offset (reduced), failure to make reformulations (deductions) in the cases and manner prescribed by this Article — where it has resulted in under-reporting of the VAT amount, as compared to what it would be when calculated as prescribed by the Code, subject to payment to the State Budget within the reporting period — shall be deemed to be an under-reporting of tax amount in the tax calculation report within the meaning of Article 403 of the Code.
14. According to the Code, the VAT amounts offset (reduced) as prescribed by the Code in the previous reporting periods with respect to acquisitions held by the VAT payers as of the day of transition from the general taxation system to the special taxation systems shall be subject to reformulation — deduction from VAT amounts subject to offset (reduction) in the reporting period by unified VAT and excise tax calculation report submitted to the tax authority for the last reporting period of being considered VAT payer which precedes that day:
(1) in the amount calculated at the rate of 20 percent of the VAT against the relevant value of goods (except for the fixed asset or intangible asset), work or service;
(2) in the amount calculated at the rate of 20 percent of the book value of the fixed asset or intangible asset.
(Article 73 supplemented by HO-266-N of 21 December 2017, HO-338-N of 21 June 2018, amended by HO-68-N of 25 June 2019, amended, supplemented by HO-358-N of 16 November 2023, amended by HO-101-N of 1 March 2023, amended, edited by HO-285-N of 12 June 2024)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
(Law HO-358-N of 16 November 2023 has a final part and transitional provisions)
(Law HO-285-N of 12 June 2024 has a transitional provision)
Article 74. Procedure for calculation of the amount of value added tax subject to compensation from the State Budget
1. VAT amount subject to compensation from the State Budget due to the results of the activities carried out during the reporting period of being considered a VAT taxpayer shall be calculated as the negative difference (hereinafter referred to as “VAT refundable amount”) of the VAT amount calculated against the tax base of transactions, considered to be taxable objects, performed during that period and prescribed by points 1 and 2 of part 1 of Article 60 of the Code and of VAT amounts offset (reduced) as prescribed by Article 71 of the Code (unless otherwise prescribed by Article 72 of the Code). The VAT refundable amount accrued as a result of joint calculation of VAT and excise tax submitted by a taxpayer operating under special taxation system and covering the reporting period of being considered a VAT payer shall also be considered to be a VAT refundable amount.
2. VAT refundable amount generated based on the results of the activities carried out during the reporting period shall, in accordance with part 3 of this Article, be directed to repayment of VAT amounts, subject to payment to the State Budget, generated by unified VAT and excise tax calculation reports by the results of the activities carried out during any reporting period, or shall be credited to the single account in accordance with part 4 or part 5 of this Article.
3. Where a taxpayer has VAT refundable amount as of the day of submission of the unified VAT and excise tax calculation report (including verified) for that reporting period by the results of the activities carried out during each reporting period, that amount may be directed to repayment of VAT amounts subject to payment to the State Budget that are generated by unified VAT and excise tax calculation reports by the results of activities carried out during any reporting period, on the deadline for VAT payment for that reporting period or prior to the day preceding the deadline for VAT payment for that reporting period, with the use of the relevant software command by the taxpayer.
4. Where the unified VAT and excise tax calculation report submitted for that reporting period by the results of activities carried out during each reporting period generates a VAT refundable amount, that amount shall — provided it is not considered as risk-prone by the criteria defined by the Government, including the risk management system applied for tax control (hereinafter referred to as “criteria defined by the Government”) — be credited to the single account prior to the day preceding the deadline for VAT payment for that reporting period or on the deadline for VAT payment for that reporting period once the taxpayer has used the relevant software command. Where the unified VAT and excise tax calculation report (including verified) submitted after the deadline for submitting the unified calculation report of VAT and excise tax for any reporting period generates VAT refundable amount, that amount shall be credited to the single account on the day of submission of the unified calculation report (including verified), if it is not considered as risk-prone in accordance with the criteria defined by the Government.
5. VAT refundable amounts generated by the unified VAT and excise tax calculation report submitted for that reporting period by the results of activities carried out during each reporting period and considered as risk-prone in accordance with the criteria defined by the Government shall be credited to the single account, if it is substantiated by the results of the inspection conducted as prescribed by Section 17 of the Code upon the written application of the taxpayer or by the results of the examination of substantiation of the amounts to be credited to the single account.
(Article 74 amended by HO-68-N of 25 June 2019, edited by HO-244-N of 26 May 2021, edited, supplemented by HO-101-N of 1 March 2023)
(Law HO-68-N of 25 June 2019 has a transitional provision)
(Law HO-244-N of 26 May 2021 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
Article 75. Submission of unified calculation reports of value added tax and excise tax
1. VAT payers shall submit unified calculation reports of VAT and excise tax to the tax authority as prescribed by Article 53 of the Code, prior to and including the twentieth day of the month following each reporting semester.
2. Taxpayers, prescribed by part 5 of Article 59 of the Code, shall — in case of performing a transaction deemed to be a taxable object — submit unified calculation reports of VAT and excise tax to the tax authority for the reporting period that includes the day of the performance of that transaction as prescribed by Article 53 of the Code prior to and including the twentieth day of the month following that reporting period.
3. In cases prescribed by point 5 of the second paragraph of part 2 of Article 70 of the Code, a non-resident organisation shall — in case of performing a transaction prescribed by part 2 of Article 70 of the Code, deemed to be a taxable object, except for the case when within the scope of electronic trade electronic service is provided or goods are supplied to a natural person who is not an individual entrepreneur or a notary — submit unified calculation reports of VAT and excise tax for the reporting period that includes the day of the performance of that transaction as prescribed by Article 53 of the Code prior to and including the twentieth day of the month following that reporting period. In the case prescribed by point 5 of second paragraph of part 2 of Article 70 of the Code, the non-resident organisation not having a permanent establishment in the Republic of Armenia — with respect to provision of an electronic service to a natural person who is not an individual entrepreneur or a notary — or the non-resident organisation or an individual entrepreneur of another EAEU member state having no permanent establishment in the Republic of Armenia and operating electronic trading platform shall — with respect to supply of goods to a natural person who is not an individual entrepreneur or a notary — prior to and including the twentieth day of the month following the reporting quarter, submit in accordance with the procedure prescribed by Article 53 of the Code to the tax authority a VAT calculation report, as per the form and procedure for filling in.
4. In case of issuing a tax invoice in violation of one of the restrictions prescribed by Article 67 of the Code, the person issuing a tax invoice shall submit unified calculation report of VAT and excise tax to the tax authority for the reporting period that includes the day of the issuance of the tax invoice as prescribed by Article 53 of the Code prior to and including the twentieth day of the month following that reporting period.
5. The taxpayer operating under the special tax system shall submit to the tax authority a unified VAT and excise tax calculation report under the procedure prescribed by Article 53 of the Code before and including the 20th of the month following that reporting period, where VAT amounts subject to offset (reduction) with respect to the VAT taxable transactions conducted in the reporting period during which the person is considered a VAT taxpayer are, in accordance with Article 71 of the Code, subject to offset (reduction) in the given reporting period, or where the results of adjustment — as prescribed by the Code — of VAT taxable transactions conducted in the reporting period during which the person is considered a VAT payer are subject to reflection in the given reporting period.
(Article 75 amended by HO-266-N of 21 December 2017, HO-338-N of 21 June 2018, supplemented, amended by HO-359-N of 17 November 2021, HO-595-N of 23 December 2022, supplemented by HO-101-N of 1 March 2023)
(Law HO-338-N of 21 June 2018 has a transitional provision)
(Law HO-595-N of 23 December 2022 has a transitional provision)
(Law HO-101-N of 1 March 2023 has a transitional provision)
Article 76. Application of zero rate of value added tax against the tax base of the transactions on supply of goods exported to EAEU member states
1. Application of zero rate of VAT with respect to the transactions on supply of goods having the status of EAEU product exported into EAEU member states from the territory of the Republic of Armenia shall be substantiated on the day of the submission of the tax declaration of export to the tax authority by an exporter.
2. In case the export of goods, having the status of EAEU product, is carried out from the territory of the Republic of Armenia into EAEU member states based on delegation, commission or agency contracts, by the delegatee, commission agent or agent respectively, and the tax declaration of export prescribed by part 1 of this Article is submitted to the tax authority by the delegatee, commission agent or agent respectively, the application of zero rate of VAT with respect to the transactions on supply of exported goods by the delegator, commission principal or principal, respectively, may be substantiated, where the fact of export of goods of the exporter is substantiated by the delegatee, commission agent or agent by relevant settlement documents.
Article 77. Documents submitted to the tax authority in case of importing goods from EAEU member states
1. In case of import of goods, having the status of EAEU product, into the territory of the Republic of Armenia from the EAEU member states (including the cases prescribed by part 6 of Article 59 of the Code) the taxpayer shall be obliged to — prior to and including the twentieth day of the month following the month that includes the day of import of goods into the territory of the Republic of Armenia (crossing the state border of the Republic of Armenia) — submit only the following documents to the tax authority:
(1) tax declaration of import completed by the importer;
(2) the statement on the import of goods and payment of indirect taxes (or exemption from indirect taxes, payment of indirect taxes under another procedure) completed by the importer — in hard copy (4 copies) and electronic format, or the statement on the import of goods and payment of indirect taxes (or exemption from indirect taxes, payment of indirect taxes under another procedure) completed by the importer — in electronic format with the electronic (digital) signature of the taxpayer.
2. In case goods, having the status of EAEU product, are imported into the territory of the Republic of Armenia from the EAEU member states based on delegation, commission or agency contracts by the delegatee, commission agent or agent respectively, or by a permanent establishment of the resident of another EAEU member state located in the Republic of Armenia or by a participant of the fair organised in the Republic of Armenia, the documents prescribed by part 1 of this Article shall be submitted to the tax authority by the delegatee, commission agent or agent respectively or by a permanent establishment of the resident of EAEU member state located in the Republic of Armenia or by the participant of the fair organised in the Republic of Armenia prior to and including the twentieth day of the month following the month that includes the day of the alienation of the goods or a part thereof to the buyer.
3. In case the right of ownership over goods, having the status of EAEU product, imported by the buyer into the territory of the Republic of Armenia from the EAEU member states, is transferred to the buyer in the territory of the Republic of Armenia, the buyer shall submit the documents prescribed by part 1 of this Article to the tax authority prior to and including the twentieth day of the month following the month that includes the day of the transfer of the right of ownership over goods to the buyer.
(Article 77 amended by HO-383-N of 10 December 2021)
(Law NO-383-N of 10 December 2021 has a transitional provision)
CHAPTER 15
PROCEDURE FOR PAYING, REFUNDING VALUE ADDED TAX AMOUNT AND CREDITING IT TO SINGLE ACCOUNT
Article 78. Payment of value added tax amount
1. VAT payers shall pay to the State Budget VAT amounts, calculated as prescribed by Article 70 of the Code, subject to payment to the State Budget in the form of amounts paid to the tax authority prior to and including the twentieth day of the month following each reporting period.
2. Taxpayers prescribed by part 5 of Article 59 of the Code shall — in case of performing a transaction deemed to be a taxable object — pay the VAT amount originating from that transaction to the State Budget in the form of amounts paid to the tax authority prior to and including the twentieth day of the month following the reporting period that includes the day of the performance of that transaction.
3. The non-resident organisation shall — in cases, prescribed by point 5 of the second paragraph of part 2 of Article 70 of the Code, except for the case of provision of electronic service or supply of goods to a natural person not considered to be an individual entrepreneur or a notary within the scope of electronic trade, in case of performing a transaction deemed to be a taxable object prescribed by part 2 of Article 70 of the Code — pay the VAT amount originating from that transaction to the State Budget in the form of amounts paid to the tax authority prior to and including the twentieth day of the month following the reporting period that includes the day of the performance of that transaction. In the case prescribed by point 5 of the second paragraph of part 2 of Article 70 of the Code, non-resident organisation not having a permanent establishment in the Republic of Armenia, with respect to provision of electronic service to a natural person who is not an individual entrepreneur or a notary, or non-resident organisation or an individual entrepreneur of another EAEU member state having no permanent establishment in the Republic of Armenia and operating electronic trading platform shall — with respect to supply of goods to a natural person who is not an individual entrepreneur or a notary — pay the VAT amounts to the State Budget in the form of amounts paid to the tax authority prior to and including the twentieth day of the month following the reporting quarter as per the procedure prescribed by the Government.
4. In case of issuing a tax invoice in violation of one of the restrictions prescribed by Article 67 of the Code, the person issuing the tax invoice shall pay the VAT amount referred to in that tax invoice to the State Budget in the form of amounts paid to the tax authority prior to and including the twentieth day of the month following the reporting period that includes the day of the performance of that transaction.
5. The VAT amounts calculated as prescribed by the Code for goods imported into the Republic of Armenia through customs procedure “Release for domestic consumption”, except for the case prescribed by part 5.1 of this Article, shall be paid to the State Budget of the Republic of Armenia in the form of amounts paid to the customs authority before the release of goods through customs procedure “Release for domestic consumption” (unless other time limit is prescribed by the EAEU unified legislation).
5.1. The VAT amounts calculated as prescribed by the Code for goods imported into the Republic of Armenia through customs procedure “Release for domestic consumption” shall, as amounts paid to the customs authority, be paid to the State Budget of the Republic of Armenia within the time limits prescribed by Article 59 of the Customs Code of the Eurasian Economic Union as envisaged for the postponement of payment of customs duty or deferred payment thereof upon the grounds prescribed by the same Article, without the condition of fulfilment of tax liability, with regard to which the customs authority shall adopt a decision on postponement of VAT payment or deferred payment thereof. The procedure for adoption and annulment of the decision on postponement of VAT payment or deferred payment thereof shall be established by the Government. In accordance to this part, the customs authority shall charge interests for postponement of payment of tax amounts or deferred payment thereof, in the amount, manner and within the time limits prescribed by Article 60 of the Customs Code of the Eurasian Economic Union.
6. The VAT amounts calculated as prescribed by the Code for goods, having the status of EAEU product, imported into the Republic of Armenia from the EAEU member states shall be paid to the State Budget of the Republic of Armenia in the form of amounts paid to the tax authority prior to and including the twentieth day of the month following the month that includes the day of import of goods into the territory of the Republic of Armenia (crossing the state border of the Republic of Armenia), except for cases prescribed by parts 7 and 8 of this Article.
7. In cases prescribed by part 2 of Article 77 of the Code, the VAT amounts calculated as prescribed by the Code shall be paid to the State Budget of the Republic of Armenia in the form of amounts paid to the tax authority by the delegatee, commission agent or agent or by a permanent establishment of the resident of the EAEU member state located in the Republic of Armenia or the organiser of the fair organised in the Republic of Armenia prior to and including the twentieth day of the month following the month that includes the day of the alienation of goods to the buyer by the delegatee, commission agent or agent, respectively, or by a permanent establishment of the resident of another EAEU member state located in the Republic of Armenia or the participant of the fair organised in the Republic of Armenia.
8. In cases prescribed by part 3 of Article 77 of the Code, the VAT amounts calculated as prescribed by the Code shall be paid to the State Budget of the Republic of Armenia by the buyer in the form of amounts paid to the tax authority prior to and including the twentieth day of the month following the month that includes the day of the transfer of the right of ownership over goods to the buyer.
(Article 78 amended by HO-266-N of 21 December 2017, HO-338-N of 21 June 2018, supplemented by HO-359-N of 17 November 2021, HO-257-N of 15 June 2022, amended by HO-595-N of 23 December 2022)
(Law HO-338-N of 21 June 2018 has a transitional provision)