Details on Bloggers' Income and Taxes: The State Revenue Committee

What should be known about tax payments from incomes received through blogging? The State Revenue Committee has published answers to frequently asked questions.

Should a blogger pay taxes on the income received from their work? If a blogger provides advertising or other services, they are obliged to pay taxes on the income received.

Reminder: Advertising is the dissemination of information about legal or physical persons, products, ideas, or initiatives through various means of information to an indefinite number of individuals, aimed at forming or maintaining interest in the respective person, products, or initiatives.

Should a blogger pay taxes on the money received for delivering advertising services? Providing a service by one person for the benefit of another is an action executed in exchange for compensation or gratuitously.

In cases where a blogger does provide an advertising service for money, products, or services received, they must declare the turnover corresponding to the value of the advertising services provided and pay taxes accordingly.

How should a blogger register as a taxpayer? A blogger, as a taxpayer, should register in the state registry as a sole proprietor (SP) or register as an organization through which they will conduct business activities.

What types of taxes apply to bloggers, and what mandatory payments are there? Advertising services are subject to turnover tax or value-added tax (VAT). In addition to the applicable taxes, sole proprietors paying turnover tax will also pay profit tax monthly at the rate of 5,000 AMD, while individual entrepreneurs born on or after January 1, 1974, will pay a social security contribution of 60,000 AMD annually, as well as a stamp duty.

What is considered a taxable object for turnover tax, and what is the rate of turnover tax? The taxable objects for turnover tax are the delivery of goods, the performance of works, and (or) the provision of services. The rate for services provided is 5% of the sales turnover.

Can a blogger be considered a micro-entrepreneur? If a blogger offers advertising services, they cannot be classified as a micro-entrepreneur.

As a taxpayer resident in Armenia, must a blogger pay taxes for services rendered abroad? A taxpayer resident in Armenia must pay turnover tax or profit tax, regardless of whether the services are provided within the territory of Armenia or abroad.

How is documentation executed by bloggers? For each service provided, a document accounting for the service needs to be issued. In the case of providing services to individuals, an accounting document must also specify the individual's name, surname, and passport details.

Is a blogger obligated to document the advertising services provided in exchange for received goods or services? In this case, too, an accounting document must be issued for each provided service.

How can a blogger independently submit calculations and pay taxes? A blogger can independently submit calculations through the electronic system of reporting submissions of the State Revenue Committee. They can also pay taxes via the same platform by accessing the "electronic payments" section.

When should a blogger submit calculations and pay taxes? Calculations and tax payments must be submitted as follows: for turnover tax, quarterly by the 20th of the month following the quarter; for VAT, monthly by the 20th of the following month; for profit tax, annually by April 20th of the year following the reporting period. To familiarize with the deadlines for tax report submissions, one should access the "Tax Calendar" section of the official website of the State Revenue Committee.

What steps should bloggers take upon receiving a notification from the tax body? Regarding discrepancies stated in the notification, they should review the received income, issue the relevant accounting documents for omissions, submit tax reports (including corrected ones) and pay the amounts owing in tax obligations; in case of disagreement, provide justifications to the tax authority.

What liability is set for bloggers in the case of tax evasion or violation of the law? Measures of liability stipulated by Armenian legislation may be applied that entail additional tax obligations and associated penalties and fines.