The Armenian government plans to reform the tax free shopping system and attract a private operator to manage it. Currently, VAT refunds to foreigners for purchases exported are organized with the participation of state customs and financial authorities, and document processing takes a relatively long time. The current rules allow for a refund for purchases exceeding 50,000 drams within one calendar day.
The new model involves revising the minimum purchase value for tax free participation, maximizing the digitalization of the procedure, and accelerating VAT refunds. The government notes that international practice shows a direct correlation between the system's effectiveness and the minimum threshold amount and the chosen administration model. Attracting a private operator should make the service more efficient and attractive for tourists.
In the future, authorities may also lift restrictions for foreigners leaving Armenia by land. Currently, VAT is refunded to them no more than twice a year, and the total amount of payments is limited to 350,000 drams. These restrictions are planned to be abandoned if an analysis of actual data shows that they are unnecessary.