Chairman of the State Revenue Committee (SRC) of Armenia, Eduard Hakobyan, presented a draft law titled “On Making Amendments and Addenda to the Tax Code of the Republic of Armenia” during a Cabinet meeting, proposing changes to regulate Value Added Tax (VAT) and profit tax procedures.
He stated that the goal of the amendments is to improve the business environment and avoid potential administrative disputes, which often arise during the clarification of transactions and the submission of tax reports.
The proposed changes aim to simplify and clarify several sectors, including VAT and cash receipt refunds, imports from the Eurasian Economic Union (EAEU), agriculture and dairy markets, as well as solar energy production, 1lurer.am reports.
Regarding VAT, the updates will affect many business entities, specifically focusing on regulations related to product returns. Currently, adjustments are permitted only for goods with expiration dates, primarily in public catering. The new draft allows for adjustments across all product types if a return is necessary.
“We are creating the legal basis in the Tax Code to allow taxpayers to adjust transactions for all types of goods, not just those with expiration dates,” Hakobyan explained.
Another amendment addresses the process for returning goods purchased with cash register receipts (CRRs). The regulation will now enable tax adjustments, including VAT and excise, to be reflected during the reporting period in which the return occurs, without needing to revise previous transactions.
“Currently, if a return is made on a CRR sale, the taxpayer must retroactively correct the original transaction and all its consequences. With this new regulation, the adjustment will take place in the month of the return, classifying it as a separate transaction from the sale,” he noted.
A change concerning solar energy relates specifically to autonomous producers, those with infrastructure capable of generating up to 150 kW of energy.
“Currently, no profit tax is paid on surplus energy, but entities are not allowed to deduct related expenses when calculating profit tax. We’re enabling that deduction now, which will help promote the use of solar energy in Armenia,” Hakobyan added.
