A public discussion on the changes to the taxation system of the professional services sector took place

On November 29, a public discussion was held at the Elite Plaza Business Center, organized by the President of the Union of Employers of Armenia, Vahagn Hambardzumyan, the President of the SME Cooperation Association, Hakob Avagyan, and the President of the Armenian Lawyers Association, Karen Zadoyan. The discussion aimed to address the legislative initiative regarding the transfer of professional services from the VAT system to the general taxation system starting from July 1, 2025.
The event brought together representatives from state agencies, public organizations, the SME sector, and the media.
Vahagn Hambardzumyan, President of the Union of Employers of Armenia, welcomed the participants and expressed gratitude to the representatives of state bodies for accepting the invitation and engaging in constructive dialogue.
Speakers at the event included Hakob Avagyan, President of the SME Cooperation Association; Karen Zadoyan, President of the Armenian Lawyers Association; Hasmik Harutyunyan, Council member of the Association of Accountants of Armenia; Vahan Grigoryan, Chairman of the Taxation Committee of the Armenian Auditors and Expert Accountants Chamber; and other invited individuals, who raised concerns about the future activities of SMEs providing professional services, unequal competitive conditions, and issues related to the shadow economy. Representatives of SMEs made several proposals, including revising the implementation deadlines of the project, suggesting that it be postponed until at least January 2026, with the intervening period being used to form working groups to assess the impact of changes, develop and implement necessary tools, and assist businesses in adapting to the new system.
Speeches were also given by Babken Tunyan, Chairman of the Standing Committee on Economic Affairs of the National Assembly of Armenia, and Arman Poghosyan, Deputy Minister of Finance, who, while sharing concerns regarding the potential growth of the shadow economy, expressed their willingness to collaborate on creating equal competitive conditions and developing necessary tools. At the conclusion of the discussion, all parties agreed to continue similar working discussions and refine the legislative draft, ensuring that the final version aims not at increasing the tax burden but at reducing the shadow economy.
As a result, the focus should be on eliminating the shadow economy first, and only after that, proceed with implementing the new legislation. The changes should be postponed until January 1, 2026, to allow time for developing and implementing the necessary tools.
Summarizing the discussion, Vahagn Hambardzumyan emphasized that the discussion had been productive, noting that the National Assembly had already issued a political statement stating that legal, accounting, and advisory services would be transferred to the general taxation system, while other professions currently under the VAT system would remain in that system. However, it was clarified that if the counterparty is subject to profit tax, the invoices issued will not be considered for reducing profit tax. This approach has a certain logic, but it remains a subject for further discussion.