About AMD 25 million returned to foreigners under new tax free system in Armenia

About AMD 25 million returned to foreigners under new tax free system in Armenia

YEREVAN, May 27. /ARKA/. In recent days, about AMD 25 million was given back to foreigners under Tax Free system introduced in Armenia on March 1, 2014, Mikael Pashayan, chief of the finance ministry’s IT infrastructure development agency, said on Tuesday.  

“Thanks to the launch of the Tax Free system, we are ready to return up to AMD 1.5 billion,” he said. “I should add that in recent days our domestic market’s turnover amounted to about AMD 100 million, of which AMD 25 million was returned to foreigners under the Tax Free system.” 

The Tax Free system allows foreign countries’ citizens coming to Armenia to take back their money paid as VAT for purchased goods. 

The new order is working only if shopping is made in a VAT-paying organization.  

Pashayan said the new rule will improve the country’s business environment, increase its trade turnover and contribute to development of tourism. 

“Armenia is the second CIS country having this system, but the Armenian model is simplest, since the whole system works on one platform – foreigners show only their passports in trade centers, and the information is sent to all the customs points of Armenia automatically.”

Booklets are available to Armenia’s guests in all border checkpoints and service points. 

To have the paid VAT back one should have a Tax Free invoice or a Tax Free cash register check. If the total amount of goods bough from the same store (same taxpayer) on the same day exceeds AMD 100,000 (VAT included), and VAT exceeds AMD 16,670 drams and if the goods have not been used before departure from the country and remain packed, VAT is returned.   

Foreigners can get the paid VAT back within 90 days since the sale in airports and other checkpoints before departure from Armenia. 

Customs officers put appropriate stamps on the invoice or tax free cash register check with the amount subject to return, and foreigners can get their money back in checkpoints’ bank units or via banking transfer within 30 days. -0----

16:47 27.05.2014

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