YEREVAN. - There is no need to fear that the large business will abuse the liberalization of VAT regime deductions.

Deputy Chairman of the State Revenue Committee (SRC) of Armenia, Vakhtang Mirumyan, told the aforementioned to Armenian News – NEWS.am.

In the past, in order to write off the VAT debit, the buyer had to settle accounts with supplier in advance. Since 2015, the requirement on advance payment was removed from companies with turnover of up to 100 million AMD, this number reaching 500 million in 2016 (slightly more than $1 million). Whereas starting from 2017, all economic entities of Armenia can receive goods by invoice, writing off the VAT without yet paying off.

On the other hand, such a regime brings justice and equal conditions for VAT debit and credit, since in the past one had to immediately pay the VAT credit, while the debit could be written off only after payment. 

Of course, now large supermarket chains may delay the payment to suppliers, since they will also be able to write off their VAT without this but these fears are groundless, Mirumyan said.

“Business has already established its rules on when and what to pay for and it follows them. The fears do not prove true, while the positive effect is apparent: business can write off the VAT earlier and release its funds,” he stated.