Fixed charge rate – mandatory and gratuitous payment to the budget, replacing value added tax and (or) profit tax. Moreover, it replaces the value added tax for physical persons, the value added tax (or) the profit tax for legal persons/entities.

Fixed rate payers are natural/physical and legal persons, enterprises without the status of a legal entity, except for individual entrepreneurs who are considered to pay a patent fee in the manner prescribed by the Law on Patent Fees.

The following types of activities are considered to be taxable with a fixed payment:

  • Trading activities through shops, kiosks (pavilions) or other outlets not exceeding 10 square meters of commercial space outside the trading area.
  • Commercial activities through shops, pavilions, kiosks not exceeding the 10 square meter commercial space located in the trading areas
  • The activities of organizing food trade by vending machines operating with cash (coins or banknotes).
  • Activities in the areas of public catering.
  • According to the preliminary orders, accompanied by relevant contracts, the activities of providing public catering services in the areas  intended for the internal consumption of the customer.  
  • Road transport activity.
  • Hairdressing services.
  • The activities of car maintenance stations.
  • Parking activities.
  • Industrial fishing activities.
  • Organization of casino activities.
  • Operation of slot machines.
  • Organizations of the internet  win games.
  • Organization of computer games.
  • Organization of lotteries.
  • Refueling activities of vehicles.
  • Organization of billiards.
  • Activities involving games with coin-operated slot machines.
  • Organization of baths and showers.
  • The activity providing dental services;
  • The activity providing dental technical services.
  • Rental of mechanical and electric children’s cars, bicycles, roller skates, scooters, hero hoverboards.

The fixed fee for each activity is calculated on the basis of a certain product of the initial data and correction factors.

Multiple number, initial data, coefficient factors for calculating the amount of fixed payments

Limits are set for some types of fixed taxable activities. They are:

         1. 10 sq.m. outside the places of trade. Meters of trading space not exceeding shops, Stands (Stalls) for Trading activity during the quarter (regardless of the number of workdays), 1 square meter of trading space. 1000.0 thousand AMD per meter, and for individual entrepreneurs who submitted a declaration within the timeframe in accordance with Article 20 of the Law of the Nagorno Karabakh Republic “On Taxes”, exceeding the volume of trade turnover by 2000 thousand AMD during the semester.   

        2. For carrying out commercial activity at the trading space, within a quarter (regardless of the number of days of activity) 1 sq.m. The volume of trade turnover per meter is 1000.0 thousand AMD – for those who sell jewelry – 2100 thousand AMD, and for individual entrepreneurs who have submitted a declaration within the timeframe in accordance with Article 20 of the Law on Taxes – 2000 thousand AMD – for those who sell jewelry, for exceeding 4200 thousand AMD during the semester.

         3. 1 sq.m. of service area during the quarter for carrying out activities in the field of public catering. 200 thousand AMD per meter, and in the case of individual entrepreneurs who submitted a declaration within the timeframe in accordance with Article 20 of the Law on Taxes, exceeding the volume of trade turnover by 400 thousand AMD during the semester. 

         4. For the operation of car service stations – 2400 thousand AMD for one job during the quarter, and for individual entrepreneurs who submitted a declaration within the timeframe in accordance with Article 20 of the Law on Taxes, exceeding the sales turnover of 4800 thousand AMD during the semester. 

           In case of exceeding the limit amount, the fixed payer calculates profit tax and value added tax for the period exceeding the limit amount. The amount of the fixed payment paid for the given period is offset by VAT and (or) profit tax.

Procedure for writing off settlement documents  

          Fixed rate payers write settlement documents for the supply of goods and services, but do not make a separate note on the amount of the VAT rate (do not write off the tax invoice).

          In case of segregation of the tax amount, the value added tax payable to the state budget is calculated and paid in the prescribed manner, regardless of the payment of fixed payments.

Baseline/initial data and coefficient factors on the statements, information presentation, presumptive fee calculation and payment dates.

The declarations on the initial data and correction coefficients are submitted to the tax authorities:

  • by the organizers of online gambling games, once a month until the last working day of the month preceding the reporting month, inclusive.
  • by the carriers, once a quarter, including the last working day of the month preceding the reporting quarter;
  • by lot – not by lot, as it is – by the organizers of combined lotteries once a month, until the 20th of the month following the given month, inclusive. By other types of activities during June-December.

Information on limit amounts is submitted to the tax authority

10 sq.m. in trading places outside the places of trade. Meters through shops, kiosks (pavilions) that do not exceed the commercial area, trade, public catering, car service station operators once a quarter, until the 20th of the month following the reporting quarter, and in accordance with the Article 20 of the Tax Law. Individual entrepreneurs/private entrepreneurs who have submitted a declaration, according to the results of each semester, up to the 20th of the month following the semester inclusive.

Gas refueling companies provide information on the physical volumes of gas they receive during the month, by the end of each month, by the 20th of the following month.

The fixed payment is calculated for each month and the budget is paid until the 20th of the month following the current month inclusive.

For the reporting period from January 1, 2021 to December 31, 2023 inclusive, taxpayers are exempt from the fixed fee for certain types of activities, except for casinos, Internet gambling, lotteries, slot machines, refueling, according to pre-orders: In accordance with the relevant contracts, the activities of providing public catering services in the facilities intended for the customer’s internal consumption.