Vat Law

THE LAW OF THE REPUBLIC OF ARMENIA

Adopted by the National Assembly on May 14, 1997, in force from July 1, 1997

ON VALUE ADDED TAX

SECTION 1. VALUE ADDED TAX AND PAYERS

Article 1. Value added tax (hereinafter referred to as VAT) is an indirect tax, which

in compliance with this Law shall be paid (levied) to the state budget for imported goods, at all stages of their production and turnover, as well as provision of services on the territory of the Republic of Armenia.

Article 2. All the physical and legal persons, enterprises without the status of a

legal person (hereinafter - persons) 1 carrying out independent economic (business) activity in accordance with the procedure defined by the Law, and implementing transactions (operations) listed in Article 6 of this Law. Economic activity, implemented regularly for the purpose of deriving income (profit), shall be considered business activity. The activity, performed against any compensation, shall be considered economic activity. The citizens of the Republic of Armenia and foreign citizens, as well as stateless persons (hereinafter - individuals), who in accordance with the contracts concluded with employers are considered as employees and at the same time do not implement transactions (operations), defined by clauses 1, 2 and 4 2 of Article 6 of this Law, shall not be considered as VAT taxpayers. Physical persons that are not individual entrepreneurs 3 shall be taxed VAT according to the procedure, defined by this Law and the customs legislation of the Republic of Armenia, in case of importing goods into the territory of the Republic of Armenia, provided the quantity or the value of the imported goods exceeds the rates established by the Law.

Article 3. Legal and individual entrepreneurs are considered to be VAT

taxpayers during a given year, if in the previous year their revenue from transactions defined in clauses 1, 2 and 3 of Article 6 of this law (including the amount of the taxable turnover...