The 2012 worldwide VAT, GST and sales tax guide

18 A RMENIA
Imported goods. The time of supply for imported goods is the
moment of importation of goods into Armenia in accordance
with the procedures established by the government of Armenia.
Reverse-charge services. The time of supply for services subject
to the reverse-charge rules is determined in accordance with rules
that are similar to the standard rules described above.
F. Recovery of VAT by taxable persons
A taxable person that performs economic activities in Armenia
may generally recover input tax by deducting it from output tax,
which is VAT charged on supplies made. Input tax includes the
following:
• Amounts of VAT indicated in tax invoices issued by the suppliers
of goods and services purchased or received during the
reporting period in Armenia
• Amounts of VAT withheld (or subject to withholding) by customs
bodies of Armenia for goods imported into Armenia
To deduct input VAT, the following conditions must be satisfied:
• The goods and services must be purchased or received in
Armenia for production or other commercial purposes.
• The payments for the goods and services must be made to suppliers’
bank accounts through a bank or post office (for cash
purchases, deductions are available for purchases of up to AMD
300,000 per transaction and up to AMD 3 million per month).
• The VAT payer must submit information to the tax authorities
about purchase and sale tax invoices issued during the reporting
period that have a VAT taxable amount exceeding AMD
100,000, except for tax invoices issued and/or accepted electronically
through the Internet.
The excess of input VAT over output VAT in the reporting period
may be carried forward and offset against output VAT in subsequent
reporting periods.
Nondeductible input tax. Input VAT may not be deducted in the
following circumstances:
• The person carrying out entrepreneurial activities is not considered
to be a VAT payer.
• VAT was paid for transactions that are exempt from VAT (see
Section D), not subject to tax or not regulated by the Armenian
law on VAT.
• VAT was paid for the goods and services purchased and/or used
for nonproduction or noncommercial purposes.
• Input VAT on purchased goods or services exceeds the output
VAT on the sale of the same goods or services, except for cases
in which the resale price is fixed by the government of Armenia.
• VAT was paid on the purchase or import of cars, except for the
cars acquired for the purpose of resale.
• The taxpayer failed to submit the required information to the
tax authorities on tax invoices issued by suppliers within the
reporting period.
Partial deduction. If a taxable person makes both taxable and
nontaxable (exempt or outside-the-scope-of VAT) transactions, it
may not deduct input VAT in full from output VAT. It may deduct
only the amount of input VAT related to the goods and services
used in taxable transactions. For this purpose, VAT payers must