Armenia simplifies VAT and income tax transaction adjustments for businesses
05.02.2026,
14:27
At a meeting on Thursday, the Armenian government approved a draft law amending and supplementing the Tax Code, aimed at regulating issues of documentation, tax reporting, and the calculation and payment of VAT and income tax.
YEREVAN, February 5. /ARKA/. At a meeting on Thursday, the Armenian government approved a draft law amending and supplementing the Tax Code, aimed at regulating issues of documentation, tax reporting, and the calculation and payment of VAT and income tax.
According to Eduard Hakobyan, Chairman of the State Revenue Committee (SRC), the proposed amendments have two main goals: first, to simplify the conditions for doing business and improve the business environment; second, to prevent potential disputes during administrative procedures.
"The amendments concern the procedure for adjusting transactions involving the return of goods with VAT, transactions processed using cash receipts, the import of goods from EAEU countries, as well as certain provisions related to agriculture, the dairy industry, and solar energy," Hakobyan noted.
According to him, current regulations allow for transaction adjustments primarily for the return of goods with a limited shelf life, particularly in the food service industry. The bill proposes to regulate the possibility of adjusting transactions for returns across all product categories.
He also stated that certain changes concern the return of goods purchased using cash register receipts and the reporting of VAT and excise tax information in the relevant reporting period.
"Currently, reporting period adjustments are only applied when reducing amounts on tax invoices. When returning goods sold using cash register receipts, taxpayers are forced to manually adjust the transaction for the relevant period, with all the ensuing consequences. The new regulations allow for adjustments in the month of return, treating it as a separate type of transaction," Hakobyan explained.
The changes affecting solar energy, he said, primarily apply to autonomous producers with an installed capacity of up to 150 kW. Currently, no profit tax is levied on excess electricity generated, but there is no provision for accounting for these expenses when calculating profit tax.
"The proposed amendments will allow for the accounting of such expenses, which will facilitate the development and expansion of solar energy in Armenia," the head of the State Revenue Committee stated.
According to Eduard Hakobyan, Chairman of the State Revenue Committee (SRC), the proposed amendments have two main goals: first, to simplify the conditions for doing business and improve the business environment; second, to prevent potential disputes during administrative procedures.
"The amendments concern the procedure for adjusting transactions involving the return of goods with VAT, transactions processed using cash receipts, the import of goods from EAEU countries, as well as certain provisions related to agriculture, the dairy industry, and solar energy," Hakobyan noted.
According to him, current regulations allow for transaction adjustments primarily for the return of goods with a limited shelf life, particularly in the food service industry. The bill proposes to regulate the possibility of adjusting transactions for returns across all product categories.
He also stated that certain changes concern the return of goods purchased using cash register receipts and the reporting of VAT and excise tax information in the relevant reporting period.
"Currently, reporting period adjustments are only applied when reducing amounts on tax invoices. When returning goods sold using cash register receipts, taxpayers are forced to manually adjust the transaction for the relevant period, with all the ensuing consequences. The new regulations allow for adjustments in the month of return, treating it as a separate type of transaction," Hakobyan explained.
The changes affecting solar energy, he said, primarily apply to autonomous producers with an installed capacity of up to 150 kW. Currently, no profit tax is levied on excess electricity generated, but there is no provision for accounting for these expenses when calculating profit tax.
"The proposed amendments will allow for the accounting of such expenses, which will facilitate the development and expansion of solar energy in Armenia," the head of the State Revenue Committee stated.
