Tax and Customs Administration

Main areas of the second phase of SRC reforms:

1. Expansion of economic incentives provided to compliant taxpayers, e.g. setting shorter terms for VAT over-payments for exporters, facilitation of participation in procurement process.

2. Implementation of automated pre-filing system for calculation of turnover tax for SMEs which will make turnover tax calculation accessible to SMEs also via cash registers.

3. Elimination of VAT at customs border for equipment and raw materials imported to Armenia by VAT payers.

4. Reviewing of administrative responsibilities, including replacement of penalties intended for first-time tax offences with warnings where penalties apply.

5. Providing taxpayers with electronic information regarding areas of tax expenditures they made in case they apply for such information.

6. Implementation of “blue channel” in customs control, which means that customs control will be reduced to minimum at the border, and economic entities will be informed that the customs control will be in post-clearance stage. Risk management system will be implemented to this end. 

7. Carrying out the functions of filling in customs declaration forms with direct participation and involvement of representatives of business entities (provision of customs services) maintaining the options of self-declaration and declaration via customs brokers.

8. Reviewing penalties for customs offences, mitigation of responsibility for minor offences and increase for major ones.

9. Setting amortization charge 1 year as selected by taxpayers (currently it is 5-20 years for most means) in terms of activity carried out within the framework of investment programs approved by the government.

10. Continuing unconditionally measures aimed at reduction and prevention of shadow turnovers including the following:

  • Implementation of individual analytical systems for taxpayers, placing high-risk taxpayers on register
  • Implementation of a mechanism to boost non-cash payments for purchases via refunding buyers certain amounts from banking service fees.