Activities supposed to pay VAT to be restricted in Armenia 

ArmInfo. It is planned to limit the list of activities in Armenia that will have to move from  turnover tax to VAT from July 1, 2025. At its meeting on March 19,  the Committee on Economic Affairs of the National Assembly of the  Republic of Armenia issued a positive conclusion on the amendments to  the Tax Code of the Republic of Armenia submitted by the Government  of the Republic of Armenia in the second and final reading.

As the Minister of Finance of the Republic of Armenia Vahe  Hovhannisyan noted in his speech, significant changes have been made  to the code compared to the first reading. In particular, law firms,  accounting activities, activities of head offices of companies,  consulting services in the public administration system, activities  of companies providing jobs for temporary workers, and other  activities providing jobs for hired workers will be transferred from  turnover tax to the general tax field. At the same time, passenger  transportation in the regions of the country will be limited in the  turnover tax system.

Another major change, as the Minister noted, concerns law firms  providing free legal assistance. In particular, the draft law  provides for exceptions when providing such assistance. Thus, if the  volume of free assistance does not exceed 5% of the total amount of  financial resources received by law firms, these funds will not be  subject to VAT.

The proposed measures, as the Minister emphasized, are aimed at  documenting these types of activities.

In this regard, the Chairman of the Commission Babken Tunyan noted  that from the very beginning it was planned to transfer all  professional activities from the defense tax to the VAT field, but  now it has been decided not to touch them, and they will continue to  work in the same field in which they worked before, with the  exception of the above-mentioned cases.