The National Assembly has not yet approved the State Revenue Committee’s attempt to decrease the price threshold of tax exempt products imported by a physical person through postal or courier services. According to the changes to the tax code that were passed by the National Assembly, citizens can import products worth up to 150,000 AMD on a daily basis through postal or courier services during a 180 day period.
During its April 23rd session, the Government had approved the State Revenue Committee’s draft which revised the country’s tax legislation. According to this draft, products/cargo imported by a physical person during a 180 day period will be tax exempt if the price of that product is less than 100,000 AMD and weighs no more than 50 kilograms. Products being delivered via international post or courier services that are no more than 50,000 AMD will be tax exempt as well.
Thus the State Revenue Committee has proposed to decrease the price threshold of tax exempt products. Currently a person can import tax exempt products that are worth up to 150,000 AMD through postal or courier services within 180 days. The same price (150,000 AMD) holds for products being brought in with a physical person.
This week the National Assembly passed the Government’s presented draft on making changes to the tax legislation. However, the packet the National Assembly approved and the packet the Government approved are not the same.
According to the version the National Assembly approved, the cargo/product accompanying a person and products imported through postal or courier services are tax exempt if their price is no more than 150,000 AMD, which is how the law is written now. This means the price threshold stays the same. Previously the imported item was tax exempt within 180 days, whereas now there will be no time limit.
Also, the packet approved by the National Assembly dictates that products imported through postal or courier services that are worth 150-300,000 AMD will be taxed at 2.5% instead of the present 10%.
In short, norms regulating electronic purchases by a physical entity seem to be loosening, which means that the executive branch has drastically revised its former stance in the last 15 days. It is safe to assume that after its April 23rd session the Government recalled the “2013-2014 Customs Administration Strategy of the State Revenue Committee” program which foresees simplifying customs administration for physical entities.
