ArmInfo. The Tax and Customs Committee proposes to improve the mechanisms for reimbursement of value added tax (VAT) by shortening the return period. "The next step, in certain situations, we will refuse to pay VAT at the border," Chairman of the State Revenue Committee (SRC) of Armenia Edward Hovhannisyan said on April 28 during a meeting of the parliamentary commission on economic Issues.
The head of the SRC recalled that according to the law, VAT refunds are made within 90 days after the submission of a request for reimbursement (for transactions subject to a zero tax rate). For economic entities with debts of less than 5 million drams, VAT refunds are made only on the basis of an application, without in - house checks, for debts of 5 to 40 million drams - in a simplified manner - on the basis of 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 are compensated based on the results of documentary study and confirmation of validity.
According to the head of the SRC, the tax service offers to shorten the refund period - VAT will not be long in coming and the business will receive a refund at the end of the reporting month. The tax authorities will also maintain the previous threshold adjustments, but in favor of the taxpayer (receiving a VAT debit under simplified procedures up to 40 million drams per month). The quarterly "preferential" threshold will increase to 120 million drams. The rfunds will be returned to the taxpayer regardless of whether he is a VAT payer at the time of submitting the relevant application.
The next step, according to the head of the SRC, the agency will consider the issue of refusing to pay VAT at the border in certain situations.