Armenia plans to reform the tax-free shopping system with the involvement of a private operator
03.09.2026,
19:18
Armenia plans to introduce a more efficient management model for the tax-free shopping system, including with the participation of the private sector.
YEREVAN, September 3. /ARKA/. Armenia plans to introduce a more efficient management model for the tax-free shopping system, including with the participation of the private sector.
To this end, the Armenian government, at its meeting on Thursday, introduced corresponding amendments and additions to the VAT refund procedure for goods purchased in the country by foreign citizens exporting.
The current regulation provides for a VAT refund if the value of purchases made within one calendar day exceeds 50,000 drams.
Currently, the process is organized with the participation of customs and financial authorities and involves paperwork, relatively long deadlines, and limited digitalization. Moreover, a purely state-run administration model limits the efficiency and attractiveness of the system for tourists.
According to the rationale, international experience shows that the effectiveness of tax-free shopping largely depends on the minimum purchase threshold and the management model.
In this regard, it is planned to engage an authorized private operator, revise the minimum purchase threshold, and ensure the digitalization and acceleration of the VAT refund process.
Further discussions are planned on lifting the restrictions in place for exiting Armenia by land transport: VAT can be refunded to a foreign citizen no more than twice a year, and the total refund amount should not exceed 350,000 drams.
The government noted that lifting these restrictions will be considered if actual data demonstrates there is no need to maintain them. ($1 - 364.19 drams).
To this end, the Armenian government, at its meeting on Thursday, introduced corresponding amendments and additions to the VAT refund procedure for goods purchased in the country by foreign citizens exporting.
The current regulation provides for a VAT refund if the value of purchases made within one calendar day exceeds 50,000 drams.
Currently, the process is organized with the participation of customs and financial authorities and involves paperwork, relatively long deadlines, and limited digitalization. Moreover, a purely state-run administration model limits the efficiency and attractiveness of the system for tourists.
According to the rationale, international experience shows that the effectiveness of tax-free shopping largely depends on the minimum purchase threshold and the management model.
In this regard, it is planned to engage an authorized private operator, revise the minimum purchase threshold, and ensure the digitalization and acceleration of the VAT refund process.
Further discussions are planned on lifting the restrictions in place for exiting Armenia by land transport: VAT can be refunded to a foreign citizen no more than twice a year, and the total refund amount should not exceed 350,000 drams.
The government noted that lifting these restrictions will be considered if actual data demonstrates there is no need to maintain them. ($1 - 364.19 drams).
