Subsidy, subvention and grant programs to be exempted from VAT
ArmInfo.The program implemented in Armenia via subsidies, subventions and grants should be exempted from VAT, if a necessary approval is received from the special governmental commission, the draft of the relevant amendments to the law "On Value Added Tax" was approved at the governmental session on March 31.
Minister of Economy Artsvik Minasyan explained that the procedure of forming the special commission will be decided by the government. The Commission will approve or reject the requests for exempting from VAT payments. If a violation of terms of program is revealed during a monitoring the VAT payment will be collected in full scale.
The Prime Minister Hovik Abrahamyan noted that various grant programs are being implemented in Armenia that should be exempted from VAT payments. "Otherwise these programs will not be implemented on the territory of the country", the Prime Minister stated. Abrahamyan mentioned that for this reason the government should apply privileged regime for such programs and to form a special commission, in which representatives from the State Revenue Committee must also be involved. "The conclusion of the State Revenue Committee will be very important in order not to cause losses for the country's economy while stimulating grant programs", Abrahamyan stated.