Another Draft Bill on not Considering Import of Vehicles from EEU as VAT Taxable Transaction

Another draft bill has been included in RA Parliament session, referring the initiative of not considering import of Vehicle from EEU member countries a VAT taxable transaction by physical persons.

The draft bill refers package of draft bills on implementing amendments to RA Law on “Value-added tax” submitted pursuant legislative order by NA MPs Vardan Ayvazyan and Garegin Nushikyan. According to it the Government doesn’t have principal objections on them.

The draft bill particularly states that adoption of the package is conditioned by elimination of value-added tax (VAT) in importing cars to Armenia from Eurasian Economic Union (EEU) space by physical persons, “The point is, EEU, as one unified common economic space, presupposes free transfer of products, resources and capital in it. This principle is enshrined in legal-contractual documents of EEU as well. From this standpoint, while importing cars to the territory of the Republic of Armenia, charging of VAT from physical persons, to our mind, contradicts that principle, as in EEU member country the VAT is already paid. Thus, according to the draft bill, it’s offered to eliminate this contrast and not to consider import of vehicles by an individual entrepreneur or physical person as a VAT taxable transaction.”

By Ofelya Hovhannisyan