Services Offered on Electronic Platforms Will Be Taxed: What Does This Project Entail?

In the tax code, the concept of electronic services will be added, meaning advertisements placed on electronic platforms and online services will be taxed. This was announced by the head of the State Revenue Committee, Rustam Badasyan, during a government meeting while presenting the draft law on "Amendments and Additions to the Tax Code."

Auroranews contacted the State Revenue Committee to clarify what this draft entails. They informed us that it pertains to services provided by non-resident organizations registered outside of Armenia. For instance, companies like Facebook, Yandex, Google, Apple, Amazon, and others that provide services to individuals residing in Armenia. This will include purchasing songs, watching movies, downloading applications, placing advertisements, and so on.

The State Revenue Committee is creating a system so that these international companies will transfer funds paid for international services to our budget in the form of value-added tax.

The Committee noted that discussions have been held with representatives of international organizations, and they are ready to cooperate.

In summary, the draft, which is expected to come into effect in January 2022, does not apply to local companies or individuals.