Indirect tax ebook - Armenia

Reporting and filing 

Resident companies and entrepreneurs

General

VAT return is a statement indicating:

• the total amount of sales and the VAT calculated thereon
• the total amount of purchases and the VAT calculated thereon
• the total amount of imported goods and the VAT calculated thereon
• the total amount of the adjustment of the VAT amount to be offset
• the amount of VAT that must be either paid to the tax authority or repaid by the tax authority.

As a general rule, VAT returns are filed quarterly. As an exception, VAT returns can be filed monthly. Late filing of VAT returns may result in additional penalties.

The VAT payment must be received by the tax authorities on time, if no payment is received then fines will be incurred.

Quarterly VAT returns

The reporting period (tax period) for most of the VAT payers is a quarter year. Entrepreneurs/taxable persons are required to submit VAT returns for each tax period and returns must be filed and VAT amounts paid within 20 days after the expiry of the tax period.

Upon detecting errors the entrepreneurs/taxable persons filing quarterly VAT returns are entitled by the Law to submit revised return.

Monthly VAT returns

The reporting period (tax period) for the VAT payers, who in the past calendar year received revenues exceeding 100 million AMD from the supplied goods, provided services and granted or partially granted goods, is one month. VAT returns must be filed and VAT amounts paid within 20 days after the expiry of the tax period.

Upon detecting errors the entrepreneurs/taxable persons filing quarterly VAT returns are entitled by the Law to submit a revised return.

Foreign taxable persons

Buying or service acquiring resident taxpayers bear VAT liability for non-resident entrepreneurs/taxable persons not registered in the Republic of Armenia and include the VAT amounts payable by non-resident entrepreneurs/taxable persons in monthly or quarterly returns submitted by the resident taxpayers.

Recovery of VAT

Only the VAT amounts calculated on zero rate transactions are subject to recovery. The recovery can be reclaimed, if the offset VAT amount exceeds the amount of VAT liabilities arisen from sales.

Sales lists

General

The tax invoices for VAT taxable transactions are acquired from the tax authorities. These invoices are counted in tax authorities and are subject to registration on loss or damage. The VAT payers upon filling in the tax invoice shall include the following information:

• the data on supplier/buyer, types of goods and their quantity/types of services, the total value
• VAT rate and amount separately
• tax invoices series and number
• taxpayer identification numbers.

Tax invoices are filled in electronic form or in paper forms obtained from the tax authorities. Only the companies/persons having contracts with the tax authorities may fill in electronic tax invoices.

VAT payers provide monthly or quarterly information to the tax authorities on the tax invoices (issued or received) for each amount that exceeds 100,000 AMD, excluding VAT. This amount is set by the Government of the Republic of Armenia.

Penalties

The legislation of the Republic of Armenia envisages the following types of responsibility:

• a penalty (ranging from 10,000 – 20,000 AMD) for late VAT tax return, in conformity with the provisions of Article 169 of the 'Administrative Offenses Code of the Republic of Armenia'
• a penalty (5,000 AMD for each information not submitted or erroneously submitted) for failure to submit or wrong information submitted to the tax authorities on tax invoices issued to buyers in regard of sales and tax invoices received from suppliers, in accordance with Article 43 of the Law
• a fine at the rate of 0.15% for each day of delay in paying the amount of VAT liabilities, in accordance with Article 23 of the Law of the Republic of Armenia 'On Taxes'
• a penalty at the rate of 10% of VAT calculated in the documents in question for violations of the procedure on filling in tax accounts.

Late Returns

Late submitted returns (two months or more) will be fined at 5% of the outstanding VAT amount, but not more than VAT payable, in accordance with Article 24 of the Law of the Republic of Armenia 'On Taxes'.

Incorrect returns

Correctness of VAT returns is periodically reviewed by the tax authorities. If errors are revealed by the tax authorities in the returns, the underpaid VAT amount is collected and the following penalties are imposed:

• 10% of underpaid VAT amount revealed as a result of tax inspections (Article 25 of the Law of the Republic of Armenia 'On Taxes')
• 50% of the underpaid VAT amount revealed as a result of tax inspections (Article 43 of the Law).

Fraud

In the case of issuing tax invoices on illegally acquired or copied forms, or a variance with the procedure established by the Government of the Republic of Armenia, the tax invoice issuer is given a penalty at double the rate of the total amount of the tax invoice (including the VAT amount), but no less than five million AMD (Article 43 of the Law).