Friday, December 8 2017 16:51

ArmInfo. Armenia is reviewing the taxation of the public catering sector. Deputy Finance Minister David Ananyan told reporters on December 8 in Yerevan.

According to the current regulation, catering facilities with a visitor service area of not more than 600 sq.m.  taxed on preferential terms. The rest were taxed in the general order. The tax code from September 2016 reduced the preferential bar to 100 sq.m.

Based on the results of studies and interviews with the representatives of the sphere, the government decided to restore taxation on preferential grounds for public catering facilities up to 600 sq. m. before July 1, 2018. After July 1, the sphere will be completely transferred to the tax field "turnover tax". The proposed rate of turnover tax for the sphere will be equal to 10% of the turnover, while at the same time providing the opportunity for the business to withdraw from the obligation 6% of the documented expenses, but not less than 4% of the turnover. "Thus, if the company's revenue for the quarter was 10 million AMD, 10% of the amount, that is, 1 million, will be its turnover tax obligation, but if the organization operates with a 25% yield - 7.5 million is the firm's expenses and all costs are documented, then 6% of these 7.5 million - about 450 thousand will be deducted from 1 million. As a matter of fact, the real volumes of tax liabilities will be about 5.5% of turnover," explained Deputy Finance Minister David Ananyan.

Despite the fact that the innovation, according to the Deputy Minister, creates more burdensome conditions for the taxpayer, they should not lead to higher prices in the public catering system.