Armenia Changes Rules for Calculating VAT for Jewelry Transactions
06.05.2026,
14:54
At its session on Wednesday, the National Assembly of Armenia adopted amendments to the Tax Code of Armenia concerning the jewelry sector in the second and final reading.
YEREVAN, May 6. /ARKA/. At its session on Wednesday, the National Assembly of Armenia adopted amendments to the Tax Code of Armenia concerning the jewelry sector in the second and final reading.
As stated by Deputy Finance Minister Arman Poghosyan, the bill revises the rules for determining the VAT tax base for transactions involving the sale of gold and precious stone items, as well as creates a more favorable tax environment for the development of the jewelry industry.
He stated that a separate procedure for calculating the VAT tax base is being established for manufacturers of gold and precious stone items, as well as for companies engaged in the sale of such items.
Poghosyan noted that the VAT tax base for manufacturers will be determined in accordance with the general procedure established by the Tax Code. In cases where a transaction is carried out free of charge or at a price significantly lower than the actual value, the taxable base will be calculated based on the positive difference between 80% of the actual transaction value and the purchase price of the gold and precious stones used in the manufacture of the product.
He stated that for companies engaged in the trade of gold and precious stones, in similar cases, the taxable base will be determined as the positive difference between 80% of the actual transaction value and the purchase price of the goods, including VAT.
The deputy minister also stated that the bill limits the right of companies engaged in the trade of gold and precious stones to offset VAT amounts separately declared by the supplier on the tax invoice, customs declaration, or import tax declaration for purchases related to transactions involving the disposal of such products.
According to Poghosyan, this provision is being proposed given the fact that, when applying the new rules, in some cases the VAT amounts paid to the state budget may be less than the VAT amounts claimed for offset.
As stated by Deputy Finance Minister Arman Poghosyan, the bill revises the rules for determining the VAT tax base for transactions involving the sale of gold and precious stone items, as well as creates a more favorable tax environment for the development of the jewelry industry.
He stated that a separate procedure for calculating the VAT tax base is being established for manufacturers of gold and precious stone items, as well as for companies engaged in the sale of such items.
Poghosyan noted that the VAT tax base for manufacturers will be determined in accordance with the general procedure established by the Tax Code. In cases where a transaction is carried out free of charge or at a price significantly lower than the actual value, the taxable base will be calculated based on the positive difference between 80% of the actual transaction value and the purchase price of the gold and precious stones used in the manufacture of the product.
He stated that for companies engaged in the trade of gold and precious stones, in similar cases, the taxable base will be determined as the positive difference between 80% of the actual transaction value and the purchase price of the goods, including VAT.
The deputy minister also stated that the bill limits the right of companies engaged in the trade of gold and precious stones to offset VAT amounts separately declared by the supplier on the tax invoice, customs declaration, or import tax declaration for purchases related to transactions involving the disposal of such products.
According to Poghosyan, this provision is being proposed given the fact that, when applying the new rules, in some cases the VAT amounts paid to the state budget may be less than the VAT amounts claimed for offset.
