ArmInfo.Armenia is ready to introduce a trade-in system. On May 26, the RA Parliament adopted in the second and final reading the package of laws "On Amendments to the RA Tax Code", "On Amendments to the RA Law" and ''On State Duty "initiated by the government.
Back on April 29, acting Minister of Finance of the Republic of Armenia Atom Janjughazyan said in the government that the Ministry of Finance had come to an agreement with institutional businessmen in this area - members of the Association of Official Dealers of Car Manufacturers. "They stated that the current regulations in the RA Tax Code not only do not contribute to the implementation of the system in Armenia, but also impede it," Janjughazyan said. In particular, this concerns the calculation of the tax base for VAT and income tax. That is, when buying a used car, and further resale, car dealers had to pay VAT on the entire cost of the car, without the right to write off.
As a result, the following decision was made - this type of activity will be licensed, and institutional organizations will be engaged in it, and VAT will be calculated and levied only on the margin for the purchase and resale of a car. The legislator also waived the 10% income tax.
The regulations will come into effect on January 1, 2022. Participants of the trade-in system (a service for accepting your car by buying a new one, the price of which is reduced by the cost of yours, taken into account. This service is provided by dealers and car dealerships, and one of its main goals is to stimulate the sale of new cars) will have to pay a fixed duty: from 2022 - 1 million drams per year, and from 2023 - 2 million drams.
