ArmInfo. It is planned to limit the list of activities in Armenia that will have to move from turnover tax to VAT from July 1, 2025. At its meeting on March 19, the Committee on Economic Affairs of the National Assembly of the Republic of Armenia issued a positive conclusion on the amendments to the Tax Code of the Republic of Armenia submitted by the Government of the Republic of Armenia in the second and final reading.
As the Minister of Finance of the Republic of Armenia Vahe Hovhannisyan noted in his speech, significant changes have been made to the code compared to the first reading. In particular, law firms, accounting activities, activities of head offices of companies, consulting services in the public administration system, activities of companies providing jobs for temporary workers, and other activities providing jobs for hired workers will be transferred from turnover tax to the general tax field. At the same time, passenger transportation in the regions of the country will be limited in the turnover tax system.
Another major change, as the Minister noted, concerns law firms providing free legal assistance. In particular, the draft law provides for exceptions when providing such assistance. Thus, if the volume of free assistance does not exceed 5% of the total amount of financial resources received by law firms, these funds will not be subject to VAT.
The proposed measures, as the Minister emphasized, are aimed at documenting these types of activities.
In this regard, the Chairman of the Commission Babken Tunyan noted that from the very beginning it was planned to transfer all professional activities from the defense tax to the VAT field, but now it has been decided not to touch them, and they will continue to work in the same field in which they worked before, with the exception of the above-mentioned cases.
