About 25mln drams refunded to foreigners in Armenia under Tax Free scheme

About 25mln drams refunded to foreigners in Armenia under Tax Free scheme

YEREVAN, May 29. /ARKA/. About 25 million drams were refunded to foreign citizens over the last days under the Tax Free system introduced in Armenia on March 1, head of application and development of IT infrastructures at Armenia’s ministry of finance Mickael Pashayan said.

The Tax Free system allows returning VAT worth up to 1.5 billion drams, he said.

The domestic trade turnover was about 100 million over the last few days, including 25 million drams refunded using Tax Free system, Pashayan added.

The Tax Free allows foreign citizens who arrived in Armenia and bought goods in the country to get back the VAT while departing. This is valid only if purchases are made in companies that are VAT payers.
 
The Tax Free system was introduced in the country as from March 1, 2014.

According to Pashayan, the new system will help improve business environment, boost trade volume and tourism.

Among CIS countries, Armenia is the second to introduce the system, but the Armenian model is simpler – the entire system works based on just one platform – foreigners have to provide only their passports at sales points and the information is automatically transferred to all customs points in Armenia, Pashayan said.

The Tax Free leaflets are made available at shops and sales and service points, as well as at frontier check points.

Foreigners can take the advantage of the scheme if they have a Tax Free invoice or a cash register receipt, if purchases from the same taxpayer during the day exceeded 100,000 drams (including VAT), if VAT alone exceeded 16,670 drams and if the item was not used and remained packed before departure.

The VAT refund opportunity is valid within 90 days after the purchase.

Foreign citizens get their VAT refunded while departing, at the airports and other checkpoints. For that they have to provide to customs officer their passport, a paper copy of tax invoice for VAT refund or tax invoice of cash register receipt, a document verifying the payment against goods to be exported (cash register receipts or cash receipt or a bank transfer receipt), the exported item that is mentioned in the tax invoice for VAT refund or cash register receipt), as well as the flight receipt in case of traveling by air.

The customs put a ‘To be refunded’ stamp on the tax invoice, and the VAT is refunded through a bank transfer within 30 days or in cash in the bank offices at checkpoints. –0—

14:43 29.05.2014

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