The State Revenue Committee announces that the National Assembly of Armenia has passed the law of Armenia “On establishing tax benefits during martial law” on October 21, 2020, and tax benefits have been established. The law is effective starting from the day after it was officially published, and applies to relations arising after September 27, 2020.
The benefits apply to free-of-charge supplies (donations) to the ministries of defense, emergency situations, territorial administration and infrastructures, high-tech industries and/or health:
1. during martial law, import from EAEU member states of goods included in the list set up by the Government is freed from VAT, excise tax and nature protection tax if these goods are supplied to the above ministries free-of-charge (by donation);
2. during martial law, the VAT amounts in terms of purchases considered as free-of-charge (by-donation) transactions of supply of the goods included in the list established by the Government are subject to offset, i.e. payers of VAT will not make deductions and/or restructurings of VAT amounts subject to offset in terms of these purchases,
3. within 10 days after the law enters into, the Government will make a list of goods, to which the mentioned regulations will apply, whereas starting from September 27 till the time the list is established, they will apply to any goods supplied free-of-charge (by donation) to Armenia’s ministries of defense, emergency situations, territorial administration and infrastructures, high-tech industries and/or health;
4. the fact that supplies of goods are free-of-charge (donated) will be confirmed via invoices issued in the prescribed manner by firms, sole proprietors or notaries and certified by the receiving ministry, whereas in terms of individuals not deemed sole proprietors, this fact will be confirmed via other documents drawn between the parties in the manner prescribed by law;
5. any goods supplied by firms and sole proprietors free of charge (donated) to the ministries of defense, emergency situations, territorial administration and infrastructures, high-tech industries and/or health and subject to excise stamping shall not be subject to excise stamping or revenue stamping during the martial law. When supplying stamped goods during the martial law, a relevant indication of the fact that the supply is free of charge (donation) will be made in the document.
In relation to applying the regulations prescribed by law, the SRC announces that in terms of import of goods from EAEU member-states, the following documents should be filed to tax authority till the 20th of the month following the month when the goods are imported (cross the Armenian state border):
firms and sole proprietors should submit an import tax declaration, and a declaration of payment of import and indirect taxes of goods;
individuals who are not deemed sole proprietors should submit an import tax declaration in terms of the goods exceeding the trade amounts established by Government decision No 191-N of 13.02.2020.
To qualify for the benefit in terms of import of goods, the taxpayer needs to submit – alongside the import tax declaration – a accounting document issued by the taxpayer in the prescribed manner, and certified by the receiving ministry.
The State Revenue Committee expresses willingness to support the taxpayers and individuals in terms of the procedure and terms of submitting declarations within the benefit program.
For additional questions, contact the Call Center of the State Revenue Committee at 060 544 444 or 0 8000 0007.