Armenian citizens exempted from paying VAT on sale of private homes

YEREVAN, December 7. /ARKA/. Armenia's National Assembly has approved today in the second and final reading a set of amendments to the Tax Code, which exempt citizens from paying VAT when selling their private houses.

The amendments were endorsed by 70 MPs, 20 were against and 2 abstained. MP Gevorg Papoyan from the ruling Civil Contract party, a co-author of the amendments, noted that at present, if a citizen decides to build his own house and sell it within two years, he/she will have to pay 20% income tax.

Papoyan also noted that there are many houses in the country in which families actually live, but they have not received a certificate of completion. As a result, in case of sale, they will have to get it and will have to pay the tax again.

He said that citizens had to pay tax even in cases where construction is not completed, for one reason or another, including financial reasons.

Papoyan said that this provision had been adopted earlier to prevent entrepreneurs from avoiding to pay income tax , but the State Revenue Committee said that all necessary tools are available to prevent it. -0-