Armenia removes legal, accounting, consulting and staffing firms from the turnover-tax regime from 1 July 2025

What changed in detail

Armenia’s Law HO-72-N amending the Tax Code was adopted on 26 March 2025, signed on 4 April and published on 7 April 2025.

Article 2 adds point 3.1 to Article 254(3) of the Tax Code, which lists who may not be a turnover-tax payer. The new point covers operators of these activities in Armenia’s classification of economic activities:

• 69 — legal and accounting activities;
• 70 — activities of head offices and management consultancy;
• 78.2 — temporary employment agency activities;
• 78.3 — other provision of human resources.

Under Article 9(3), Articles 2, 3, 7 and 8 enter into force on 1 July 2025. From that date these businesses cannot use the turnover-tax regime and fall under the general VAT and profit-tax system.

Article 1, on the VAT base for free legal aid provided by advocates (up to 5% of the VAT base), took effect on 8 April 2025 and, under Article 9(2), applies to relations arising from 1 January 2025.

What it means

The exclusion is in force and has applied since 1 July 2025. Affected firms that were on turnover tax had to move to the general regime from that date: registering for VAT if over the threshold, issuing VAT invoices, and paying profit tax on profit rather than turnover tax on revenue. The classification code of the activity actually carried on decides the outcome, not the company’s name or stated purpose, so mixed-activity firms should check whether any of these lines is part of their business.