Case of Unlicensed Drug Trade Via Social Media Uncovered by State Revenue Committee

Any deviation from economic activity regulations immediately comes to the attention of the operational staff of the State Revenue Committee (SRC). This time, the focus of the Department of Investigation and Operational Intelligence was drawn to an advertisement for an unregistered pain reliever and dietary supplements on the VITAMINNER.COM page on Facebook. The absence of price tags, branding, and delivery addresses raised suspicions regarding the products. The SRC reported this.

As a result of operational-intelligence activities, the department's sectoral division number 7 identified that the mentioned social media page belongs to a resident of Yerevan. Following preparatory and verification efforts, comprehensive operational-intelligence measures were undertaken. By presenting themselves as buyers and engaging in an immediate transaction with those involved in the suspicious business, the department’s staff purchased 12 boxes of the unregistered “ADVIL” medication in cash and uncovered the genuine scheme.

It was discovered that citizen A.K. had obtained orders and purchased products via electronic payment from the “AMAZON” online marketplace and transported them to Armenia. In December 2020, the citizen also created the “VITAMINNER.COM” Facebook page and sold vitamins and medications worth 385,000 AMD until June 2021.

According to the Republic of Armenia's law on licensing, the sale of medications in Armenia is subject to licensing. However, the citizen, lacking state registration and not being registered with the tax authorities, engaged in business activities that require licensing. Operational-intelligence activities are being conducted to fully clarify the damage caused to the state.

The Department of Investigation and Operational Intelligence reminds that current internet traders have several options for documenting the sale of products. Previously, they were only required to issue a tax invoice and a receipt from the cash register was not considered accompanying documentation; now this option is allowed as well. Moreover, in accordance with Article 380.1 of the RA Tax Code, an electronic cash register device has been introduced.

The SRC's Department of Investigation and Operational Intelligence assures that any deviation from the bounds of legality in economic activities is under their scrutiny; all attempts at violations, whether in virtual or real domains, will be prevented.