License payments are mandatory and non-refundable fees paid to the state budget by physical persons specified in the license fee by law (including individual entrepreneurs/private entrepreneurs) replacing the value-added tax.
Patent fee payers (also called license fee payers) are individuals who are sole proprietors/private entrepreneurs carrying out the types of activities included in Table 1 and 2 within the period and in the manner prescribed by law and starting from January 1, 2013. Individuals who are not sole proprietors carrying out the activities listed in Table 1.
Individuals cannot be considered patent fee payers:
– if during the previous year or at any time of the current year, the total amount of turnover without VAT for all goods supplied, services provided, works performed (except for work performed as a hired worker), as well as rents exceeded 12,000,000 AMD. – who, at the time of submitting the application-declaration to the tax authorities to be considered a patent payer, at any time of the previous year (or) of the current year, have entered the territory of the Artsakh Republic through the customs regime of “import for free circulation”
– who are part of the joint venture agreement (except for the production of agricultural products).
– who own more than 20% of the statutory or share capital of other individuals (shares, stocks, shares);
– whose activities (except for the types of activities that do not have a permanent place of implementation due to their nature) are carried out in more than one place;
– who have liabilities for overdue tax and other obligatory tax payments (including the amount of fines and penalties) exceeding 100 thousand drams (more than AMD 100,000) to the state budget of the Artsakh Republic in order to be considered a patent fee payer.
License fee payers will be considered for declaration and payment performance
A physical person or sole proprietor/private entrepreneur is considered a voluntarily patent payer
Individuals engaged in the activities listed in Table 1 and 2 shall submit an application to be considered a patent payer before carrying out the activity, and sole proprietors/private entrepreneurs having a license for the given type of activity before continuing the given type of activity after the period provided by the previous license.
The announcement is supplemented by:
– in case of individuals who are not sole proprietors/private entrepreneurs: name and surname, passport data, social card number (if available), period of carrying out taxable activities, type of activity (s), place (except for non-permanent place of activity due to its nature)).
– in case of a sole proprietor/private entrepreneur, name, surname, state registration certificate number, taxpayer registration number, period of carrying out activities taxed with a patent fee, type of activity (types), place (except for types of activities that do not have a permanent place of implementation due to its nature).
Patent fee payers pay the patent fee upon receipt of the patent.
Licenses are issued to individuals and individual entrepreneurs/private entrepreneurs for a quarter, six months, 9 months or a calendar year.
Performance of other obligations by license fee payers/patent fee payers In case of cash calculations for individual entrepreneurs paying a patent fee, the deadline for installation of cash registers for the areas of activity for which the use of cash registers is mandatory from July 1, 2012, has been postponed until January 1, 2026.
From January 1, 2021 to December 31, 2023 inclusive for the reporting period (quarter, semester, nine months, a year) the activities mentioned in Annexes N 1 and N 2, which are considered an integral part of this law, are exempted from the patent fee.