New Regulations for Taxi Services in Armenia from September 1

According to new regulations, as of September 1, 2024, passenger taxi transport in Armenia can only be carried out by organizations, individual entrepreneurs, or private individuals who possess the appropriate license, have joined the electronic system of the tax authority, and provide an electronic receipt from an electronic cash register. This was reported by the State Revenue Committee (SRC).

What should electronic transportation service providers do?

Individuals or organizations providing passenger transportation services via electronic platforms (GG, Yandex, Utaxi, etc.) must:

• Obtain the right to engage in this activity from the authorized body, the Ministry of Territorial Administration and Infrastructures, and pay an annual state duty at a rate of 1,000 times the annual base duty (1 million AMD),
• Join the SRC's electronic system,
• Generate an electronic cash register receipt and provide it to the client on behalf of the driver for each order,
• Submit a declaration regarding the state duty applicable to the transportation services provided by the taxi service to the tax authority electronically by the 10th of the month following each month,
• Pay the state duty based on the total value of the transportation to the state budget by the 10th of the month following each month.

What obligations do drivers have?

Drivers who provide taxi services using their personal vehicles but receive orders from GG, Yandex, Utaxi, or other platforms have no obligations apart from registering with the tax authority. All obligations regarding joining the SRC system, generating electronic cash register receipts, and paying state duties will be fulfilled by the electronic transportation service provider.

How should drivers register with the tax authority?

Drivers who receive taxi service orders from platforms like GG, Yandex, and Utaxi must be registered with the tax authority by the electronic transportation service provider, which provides information such as the driver's passport or identification card and public service registration number. Foreign citizens must register themselves by visiting any division of the SRC's taxpayer service.

Who issues the electronic cash register receipt?

If a driver provides taxi services receiving orders from electronic platforms, the electronic cash register receipt will be generated for each order and provided to the passenger by the electronic transportation service provider.

Do drivers need to buy separate cash registers?

No, there is no need to purchase separate electronic cash registers as the receipts will be generated electronically through the system connected to the SRC.

What obligations do taxi services have?

Organizations and individual entrepreneurs providing taxi services through orders from platforms like GG, Yandex, Utaxi have no obligations apart from self-registration with the tax authority. All obligations, including joining the SRC system and generating electronic cash register receipts, will be handled by the electronic transportation service provider.

What about individual drivers?

Individuals providing taxi services independently (without orders from any electronic platform) will need to:

• Obtain a license from the Ministry of Territorial Administration and Infrastructures without a state fee,
• Join the SRC system using a mobile version,
• Obtain a taxpayer registration number online through the system,
• After fulfilling orders, provide clients with electronic cash register receipts,
• Submit a declaration electronically to the tax authority regarding their activity before the 10th of the month following each month,
• Pay the applicable state duty based on the total transportation value by the 10th of the following month.

What are the obligations for taxi services operating without joining platforms?

The taxi services operating independently must obtain the necessary licenses from the Ministry. If they operate with 1 to 4 vehicles, the annual state duty will be 100,000 AMD; if more than four vehicles are used, the duty will be 200,000 AMD.

How is the state duty calculated?

The state duty payable to the budget for taxi services is calculated based on the total value of each transportation. The duty rates differ: for cash payments, the rate is 2% starting September 1, 2024; 3.5% from January 1, 2025; and 5% from January 1, 2026. For cashless payments, the rates are 1.5%, 2.5%, and 4% for the corresponding dates.

When should declarations be submitted and duties paid?

Declarations must be submitted exclusively electronically by the 10th of the month following each month, and the state duties must also be paid by the same deadline.

What penalties apply for non-compliance?

If organizations, individual entrepreneurs, or individuals fail to pay their state duties on time, the unpaid amount is subject to recovery with penalties calculated at 0.075% per day. Fines of up to 500,000 AMD may be imposed for not submitting declarations or underreporting the state duty.