Wednesday, October 23 2019 16:31

ArmInfo.As of October 21, the State Revenue Committee (SRC) of Armenia repaid its obligations to 2006 old debtors with VAT arrears. An amount of AMD 1,564,663,941 was transferred to a single taxpayer account

SRC Press Service recalls that according to Article 6 of the Tax Code  of Armenia, for business entities with debts of less than 5 million  drams, VAT debit or the so-called "overpayments" are returned without  a corresponding taxpayer statement and desk checks

Earlier, ArmInfo reported that on September 12, the Armenian  government decided to return 56 billion drams worth of VAT debit  balance to business entities. The corresponding decision was made at  a cabinet meeting.

As t head of SRC David Ananyan explained, after the entry into force  of the new Tax Code, the difference between the old and the new debit  balance was established. The new ones - after July 1, 2018, are  returned to economic entities on the basis of their own statement in  a quarterly context, and the old ones are sent exclusively to pay off  upcoming VAT obligations. "By this decision, we eliminate the  distinction between old and new receivables, which will be applied  from January 1, 2020," he said.

Moreover, as the head of the SRC pointed out, the very next day after   the approval of the bill, taxpayers can apply for receiving   overrpayments formed at that time. The following scheme will be   applied: for business entities with debts of less than 5 million  drams, VAT debit will be returned only on the basis of applications,   without desk audits, for debts of 5 to 40 million drams, VAT funds   will be returned in a simplified manner, based on the application of   the economic entity and information available to the tax authority,   and in case of exceeding the threshold of 40 million drams, the funds   will be refunded after the documentary study and verification .

According to the head of the tax and customs committee, the matter   concerns about 9 thousand business entities, 3 thousand of which are   old debits, the state owed 56 billion 443 million drams. So,   according to him, after making the decision, persons with a debt of   up to 5 million drams will automatically receive their funds. "By the   end of the year, we will return 50 billion drams from the indicated   56 billion drams," Ananyan said.  The head of the SRC reminded that  as of January 2018, the tax  authority owed 275 billion drams to  business entities. Having  resolved the situation with 50 billion  drams, as the chief tax  specialist pointed out, 72-75 billion drams  remain for current  obligations, which are formed and repaid. "I  think by January 1, 2020  we will be able to declare that within two  years we have reduced our  debts to business entities by 220 billion  drams, which is common for  a strong state," he said.

"It turns out that we financed the economy in the amount of 220   billion drams," Prime Minister Nikol Pashinyan stated. In addition,   as the head of government pointed out, business entities were not   even hoping to receive these 56 billion drams. "This opportunity   arose due to an increase in tax revenues," Pashinyan explained.