ON THE ADOPTION OF THE PACKAGE OF DRAFT LAWS OF THE REPUBLIC OF ARMENIA “ON MAKING ADDITIONS AND AMENDMENTS TO THE LAW OF THE REPUBLIC OF ARMENIA ‘ON APPROVING THE LIST OF GOODS IMPORTED BY ORGANIZATIONS AND INDIVIDUAL ENTREPRENEURS THAT ARE NOT SUBJECT TO EXCISE TAX, THE IMPORT OF WHICH IS EXEMPT FROM VALUE ADDED TAX'” AND “ON MAKING AN ADDITION TO THE TAX CODE OF THE REPUBLIC OF ARMENIA”

Currently, a significant number of companies in the republic’s industrial sectors import certain types of raw materials and supplies for production purposes that are unavailable in Armenia but are necessary to obtain the final product in the manufacturing process.

The mentioned goods are charged with value-added tax when crossing the customs territory of Armenia, which requires additional financial expenses from industrial companies.

Currently, according to Article 79 of the RA Tax Code, the payment deadline for VAT amounts calculated on the import of goods by organizations and individual entrepreneurs selected by government decree within the framework of investment programs is deferred for a period of three years.

The mentioned article provides organizations and individual entrepreneurs the opportunity to import equipment, raw materials, and supplies within the framework of investment programs, provided that the investment programs are approved by the RA Government.

The inclusion of goods in the list presented in the draft was carried out based on the equipment and raw materials imported by industrial enterprises that are exclusively necessary for production. Specifically, the composition of goods imported by legal entities and individual entrepreneurs within the framework of investment programs was studied, and the equipment and raw materials mentioned in the list—which are not produced in Armenia and will not be produced in the medium term—were included, as there will be a need to regularly import them from abroad.

Example:

• Chemicals, furs, wool and cotton fabrics, threads, fasteners, etc., which are used by local light industry companies for clothing production;
• Flat-rolled iron products, which are mainly used for the production of iron pipes;
• Various types of metals and semi-finished products made from them, waste, and scrap for metallurgical and metalworking enterprises;
• Various types of equipment for monitoring and measuring production processes;
• Chemicals necessary for greenhouse farms that are not produced in Armenia;
• Materials necessary for the production of medical masks.

You can familiarize yourself with the approved list, additions, and amendments to the law by following this link: www.parliament.am