August 6, 2021 – 17:16 AMT
PanARMENIAN.Net – Google, Facebook and similar companies will now be able to pay VAT in Armenia, Head of the State Revenue Committee Rustam Badasyan told a government meeting on Friday, August 6, after the Cabinet approved the draft project.
Dwelling upon amendments in the country’s Tax Code, Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues.
Economy Minister Vahan Kerobyan noted, in turn, that the regulation is aimed not only at securing additional tax revenues, but also at leveling competitive conditions. “According to our estimates, additional taxes of at least AMD 20 billion (over $40 million – Ed.) will be collected,” he said.
In 2018, Facebook started recording advertising sales made through local representatives in the countries where they are located, rather than funneling that money directly to Ireland, which has a lower corporate income-tax rate than many other countries.