There are three main directions of the amendments designed in the Tax Code: The first one is the fixing of the electronic printout of paper documents justifying the transaction, the second one is increasing the effectiveness of the tax control toolkit and fixing the responsibility for documentation requirements and the last is the definition of measures of liability for individuals who carry out property lease transactions, but do not declare taxes.
This was stated by the Deputy Chairman of the State Revenue Committee (SRC) Karen Tamazyan at the NA regular sitting held on October 3, during the report of the draft law on Making Amendments and Addenda to the Tax Code of the Republic of Armenia.
The draft proposes to establish that insurance agents and insurance brokers cannot be considered turnover taxpayers or micro-enterprise entities. The rapporteur noted that the tax authority can also carry out measurements in order to find out compliance with the documentation requirements for procurement transactions.
“Taking into consideration the necessity to submit calculation documents and information exclusively electronically to the tax authority, the removal of calculation documents, which are still made on paper, and the management of cash registers for accounting of cash operations will also be done electronically. In case of non-observance of the documentation requirements of transactions for the purchase of goods (except for raw materials, substances, fixed assets and foreign currency) by turnover taxpayers, a fine will be imposed in the amount of 20% of the purchase price of these goods. If the same violation is committed again within a year, the fine will amount to 50% of the purchase price of the goods,” the Deputy Chairman of the SRC mentioned.
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According to Karen Tamazyan, as a result of the draft adoption, it is expected to reduce the possible risks of under-declaration of sales turnover of circulation taxpayers.
If the draft law is adopted, the regulations will enter into force on 1 January 2025.
The member of the Standing Committee on Economic Affairs Tsovinar Vardanyan made a related report. She informed the parliamentarians that the issue was debated in the Committee and was endorsed.
National Assembly of the Republic of Armenia