ArmInfo. Armenia reduces the threshold of purchases under Tax Free VAT refund system for foreigners; the government took the relevant decision at today's session.
Head of Stet Revenue Committee of Armenia Vardan Harutyunyan stated that according to the current system VAT is returned in case purchases made by foreigners amount to 100 thousand drams and more. It is proposed to reduce the threshold two-fold. According to Harutyunyan the amendment is aimed at boosting purchases made by foreigners and tourists in Armenia.
According to the data of Armenia's State Revenue Committee in the period between 2014 and October 2016 more than 1 bln drams were returned to foreign tourists within Tax Free system. 7000 foreigners received VAT.
To note, Tax Free system was introduced in Armenia on March 1 2014 and was valid for purchases exceeding 100,000 drams. Thus, Armenia has become the second country in CIS to have such a system. Some shops have Tax Free labels and booklets containing necessary information are available for all the guests of Armenia both in customs houses and in service points. VAT refund opportunity is valid within 90 days after the purchase. Tax Free does not relate to purchase of cigarettes, medicine, cultural values and costs on transport means.
