131 Taxpayers Acquired and Supplied Goods Without Relevant Documentation, Says State Revenue Committee

The Investigation and Operational Intelligence Department of the State Revenue Committee of Armenia has been receiving periodic information from entities engaged in retail resale regarding the lack of appropriate invoices provided by wholesalers or manufacturers for the goods supplied to them. Conversely, the wholesalers claim that they are being asked not to issue the required documentation for the supplied goods. This information has been reported by the State Revenue Committee of Armenia.

To acquire factual data regarding these reports, the Investigation and Operational Intelligence Department of the State Revenue Committee implemented comprehensive operational and intelligence measures across the republic over the past month, based on the decision of the head of the department. To ensure the completeness and multifaceted nature of the information obtained, these measures were simultaneously conducted on a daily basis both at the buyers’ and suppliers’ locations.

Initially, the investigation focused on the undocumented inventory available at commercial points. This was followed by identifying the details of the suppliers, the frequency of deliveries, and their volumes. Subsequently, efforts continued with the individuals who provided the supplies, correlating the factual data obtained with accounting documents.

Based on the initial data collected, the measures led to the identification of individuals who committed tax violations, while also calculating the volumes of shadow turnover for both buyers and suppliers. As a result, 131 taxpayers were found to have recorded goods without the proper acquisition documents, while these goods were supplied without the necessary documentation by 107 taxpayers. Considering the objectives of operational intelligence activities, and in accordance with legal requirements granting powers to tax authorities for oversight, warnings regarding violations were issued. Already, 45 of the aforementioned 131 business entities have submitted corrected reports, resulting in an increase of around 339 million Armenian drams in turnover.

In 8 cases, undeclared goods subject to mandatory marking were discovered. Materials related to these cases have been sent to the legal department of the State Revenue Committee for appropriate proceedings.

The State Revenue Committee urges both suppliers and buyers to refrain from conducting transactions without proper documentation between each other. Measures are being taken to address the administrative liability of the taxpayers supplying the goods while simultaneously working towards the recovery of underpaid tax obligations.