Armenian business entities to get VAT refunds every month

YEREVAN, March 11. /ARKA/. The government of Armenia approved today a set of amendments to be made to the Tax Code, which would allow business entities to get VAT refunds every month instead of the current once in a quarter.

"Monthly VAT refunds will allow business entities not to wait for the end of the quarter and receive VAT refunds at the end of every month. The changes are aimed at periodic and quick return of funds to business entities to replenish their working capital and increase investments," the chairman of the State Revenue Committee (SRC) Edward Hovhannisyan said.

According to the proposed amendments, a company will be able to apply for a VAT refund the next day after the submission of a VAT payment report to SRC based on the results of the previous month.

According to Hovhannisyan, the amendments remove a restriction on VAT refund in a simplified manner. Now the maximum refund amount for the quarter is 40 million drams. He also said the SRC is discussing the possibility of eliminating VAT payments at the border, which will create more favorable and stimulating conditions for business entities.

For his part, Prime Minister Nikol Pashinyan noted that since 2018, the authorities have significantly increased the amount of VAT refunds, which was previously not available to entrepreneurs.

According to the SRC, in the first two months of 2021 some 21.7 billion drams were returned to business entities as VAT refund, up from 18.518 billion drams in the same period in 2020. ($1 - 525.93 drams). –0--