From September 1, Taxis Must Provide Electronic Receipts, Says Tax Authority

The State Revenue Committee informs that starting from September 1, 2024, new regulations regarding passenger transport by taxi vehicles will come into effect. It will be mandatory to join the electronic system of the tax authority and provide electronic cash register receipts.

According to legislative changes, passenger transport by taxi can only be carried out by organizations, individual entrepreneurs, or physical persons that have joined the electronic system of the tax authorities. Starting September 1, the use of electronic cash registers will also be mandatory for service providers offering passenger transport with taxi vehicles. For each order, the service provider must provide the customer with an electronic receipt from the electronic cash register (except for transportation services provided through electronic platforms).

In cases where passenger transport using light passenger vehicles is carried out through electronic platforms, the electronic receipt from the electronic cash register will be provided to the customer by the organization or individual entrepreneur offering the service through the electronic platform.

It is noted that a transportation service provided through an electronic platform is considered as accepting and transferring passenger transport orders using information technology, including via the internet. To provide transport services through an electronic platform, acquiring the right to offer such services is necessary. Organizations or individual entrepreneurs can only provide these services after obtaining this right from the authorized body, for which an annual state fee is established at 1000 times the annual base fee (1000 drams).

When providing passenger transport services through electronic platforms, the organization or individual entrepreneur must:

• Provide online access to the authorized body and tax authority regarding the registered orders.
• Inform each customer regarding the total cost of transportation for each order.
• Provide the customer with an electronic receipt from the electronic cash register for each order executed.
• Pay the state fee on the total value of the calculation, collection, and payment to the state budget according to the established law.

To carry out passenger transport activities, a license is required, and a state fee must be paid. Organizations, individual entrepreneurs, and physical persons carrying out irregular passenger transport in light passenger vehicles in the territory of Armenia, as well as passenger transport using taxi vehicles, must have a license. The legislative changes have also established new rates for state fees for issuing licenses.

For cash payments, the state fee is set at 2% of the total value of each transfer starting from September 1, 2024, 3.5% from January 1, 2025, and 5% from January 1, 2026. For cashless payments, it is 1.5% starting from September 1, 2024, 2.5% from January 1, 2025, and 4% from January 1, 2026.

Companies, individual entrepreneurs, and physical persons must submit a declaration to the tax authority regarding their passenger transport activities using taxi vehicles by the 10th of the month following the reporting month, exclusively electronical. They must also declare the state fee that has accrued and is subject to payment to the state budget.

Failure to comply with the law results in penalties. If organizations, individual entrepreneurs, and physical persons fail to pay the state fee on time, the unpaid amount will be considered overdue and subject to enforcement with a penalty calculated at 0.075% for each overdue day. In cases where passenger transport is carried out through electronic platforms, the responsibility for collecting the state fee lies with the organizations or individual entrepreneurs providing the service.

Unpaid state fees and accrued penalties must be paid to the state budget within 10 days of the date of the authorized body's relevant act. Furthermore, carrying out irregular passenger transport in light passenger vehicles without a license, or calculating the state fee below the established amount, is subject to a fine of 500,000 drams. Implementing passenger transport without an electronic cash register or violating its application rules incurs a fine of 200,000 drams for each incident.