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The Armenian government has proposed that the points of sale at land border checkpoints should be exempted from value added tax. The main speaker, Armenian First Deputy Minister of Economy Garegin Melkonyan made that announcement  today at the extraordinary sitting of the Armenian parliament convened on the government’s initiative, during debates of  the first reading of a bill on amendments and additions to the Law on VAT.

By the bill on amendments and additions to the Law on Value Added Tax, the customs procedure of duty free trade shall apply not only to shops at the airports, but also shops at land (border) checkpoints.

“Following the adoption of the bill, duty-free shops at checkpoints in the city of Meghri in Syunik province of Armenia, in the village of Bavra in Shirak province, and the village of Bagratashen in Tavush province will be exempt from VAT,” Melkonyan said adding: “This request was made by the private sector. After studying international experience, the Armenian government developed an initiative that will allow such a service for points of sale at land (border) checkpoints”.

According to him, there is now a duty-free shop at a land border checkpoint in Armenia, but unlike sales outlets at the airports, it is not exempt from VAT.