ArmInfo. The entry into force of a number of new tax regulations for representatives of the public catering may be postponed for several years. David Ananyan, Chairman of the State Revenue Committee (SRC) of Armenia, stated this at a press conference on January 16, speaking of a possible search for solutions for restaurateurs complaining about tax reforms.
On July 1, 2018, new tax rules came into force - a patent tax for restaurants (tax per square meter) was replaced with a 6% VAT. From January 1, 2019, the tax burden was increased to 8%, and from 2020, it will reach 10% of turnover. At the same time, the business entity is given the opportunity to withdraw from obligations 6% of the documented expenses, but not less than 4% of the turnover. Restaurators threatened to hold a protest and in January to close their establishments for one day, if they could not reach an agreement. According to Ananyan, negotiations with restaurateurs continue, an atmosphere of mutual understanding has already formed. There is a consensus, but if there are several solutions, as the head of the SRC has indicated, those responsible for the sphere seek to find a solution that will protect the interests of all economic entities in the field of public catering. As stated by the chief tax officer, it is possible that the 10% tax on turnover for catering representatives will not take effect from 2020, as provided for by the Tax Code, but several years later, when the procurement process will be fully documented. "Today, not all restaurants want to document their activities. Time is needed to assess the most logical decision and move to it, so that a culture of documenting all expenses and purchases is formed," he said. At the same time, he noted that after the decision was made, it will have retroactive effect and be distributed from January 1, 2019.
Recall that according to the previous tax regulations, catering facilities with an area of the visitors' service hall are not more than 600 sq. M. taxed on preferential grounds. The rest are taxed in a general manner.The new Tax Code, adopted in September 2016, reduced the bar to 100 sq.m. Following the results of studies and consultations with representatives of the sphere, the government decided to temporarily - until July 1, 2018 - restore taxation on preferential terms for catering facilities with an area of up to 600 sq.m. Already on July 1, 2018, new tax rules came into force - a patent tax for restaurants (a tax per square meter) was replaced with a turnover tax. As stated in the Ministry of Finance, studies show that the sphere operates with high yield.Meanwhile, according to restaurateurs, the profitability of the restaurant business is 10- 15%, and not at all 30%, as officials mistakenly believe in tax policy. In addition, a sharp rise in prices will hit domestic consumption, the development of tourism, especially gastrotourism. They propose to establish a threshold for tax on turnover of no more than 3%.