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SMALL FARMS WILL CONTINUE BEING EXEMPT FROM VALUE ADDED TAX, MINISTER OF AGRICULTURE SAYS
Noyan Tapan
May 1, 2008
YEREVAN, MAY 1, NOYAN TAPAN. In accordance with the requirements of
joining the World Trade Organization (WTO), starting from January 1,
2009, it is envisaged to collect value added tax (VAT) from farms in
Armenia. However, taking into account the low profitability of the
sector, productivity of lands in the country and other peculiarities,
the Armenian government has conducted negotiations with the WTO to
ease somewhat this obligation. The RA minister of agriculture Davit
Lokian said in the National Assembly on April 30 that an agreement
has been reached that small farms will continue being exempt from
VAN after the indicated date.
In his words, no VAT will be collected from Armenian farms and 3
thousand enterprises producing agricultural products. VAT will be
levied on 1,000 entities but the sums levied will be given back to
these farms in the form of subsidies and other services. D. Lokian
announced that this order will be in force within the next 5 years.
Noyan Tapan
May 1, 2008
YEREVAN, MAY 1, NOYAN TAPAN. In accordance with the requirements of
joining the World Trade Organization (WTO), starting from January 1,
2009, it is envisaged to collect value added tax (VAT) from farms in
Armenia. However, taking into account the low profitability of the
sector, productivity of lands in the country and other peculiarities,
the Armenian government has conducted negotiations with the WTO to
ease somewhat this obligation. The RA minister of agriculture Davit
Lokian said in the National Assembly on April 30 that an agreement
has been reached that small farms will continue being exempt from
VAN after the indicated date.
In his words, no VAT will be collected from Armenian farms and 3
thousand enterprises producing agricultural products. VAT will be
levied on 1,000 entities but the sums levied will be given back to
these farms in the form of subsidies and other services. D. Lokian
announced that this order will be in force within the next 5 years.