The Armenian State Revenue Committee (SRC) has presented a package of legislative amendments intended to simplify tax administration and address practical issues identified during discussions with taxpayers. The proposed measures include several changes affecting VAT administration, VAT registration and the VAT obligations of non-resident suppliers.

The proposals would allow taxpayers to adjust the original transaction when goods are returned, rather than documenting the return as a reverse sale in certain cases. According to the SRC, this would simplify the treatment of returns and improve the accuracy of VAT reporting.

The package would also change the VAT treatment of returns made using cash register receipts. Instead of correcting the VAT return for the original month of sale, VAT and excise adjustments would be recognised in the reporting period in which the goods are returned.

Further amendments would revise the calculation of the VAT taxable amount for transfers of unfinished apartment buildings where construction permits have expired or been extended. The proposal would remove the current minimum taxable amount based on 80% of the cadastral value.

The SRC also proposes a temporary regularisation measure for businesses that failed to apply for VAT registration between 2022 and 2025. Applications submitted by 21 December 2026 would allow registration for those years by 31 December 2026, with related tax assessments, penalties and interest recalculated.

The proposed amendments would simplify the VAT regime applicable to non-resident businesses without a permanent establishment in Armenia. Non-resident suppliers would account for VAT on supplies to entities that are not VAT taxpayers, except the state and municipalities. Quarterly VAT reporting would become the general rule, while monthly reporting would continue to apply to sales of goods to individuals through EAEU electronic platforms. VAT returns would be submitted through the e-VAT system.

The package also includes a proposal to increase the permitted loss threshold for marked dairy products from 1% to 2%.

VAT legislation, State Revenue Committee guidance and administrative decisions across Armenia.

Armenia Proposes VAT Administration Simplifications

Armenia Proposes VAT Administration Simplifications