Around 3.4 Billion Dram Fake Tax Invoice Scheme Discovered

The Investigation and Operational Search Division of the State Revenue Committee of Armenia has received information regarding a group of individuals who, under the name of a formally registered company, issued tax invoices without any actual delivery of goods or provision of services.

According to the obtained data, a pre-designed multi-tiered mechanism was applied. Companies were established in the names of individuals who mainly lacked financial resources or had previous convictions. These companies, lacking documentation justifying the purchase of goods, necessary property, technical means, or workforce, documented sales of large volumes of construction materials and provision of construction services on paper.

From the primary ring of this scheme, fake tax invoices were issued to businesses included in the subsequent ring. These businesses, in turn, documented transactions with companies engaged in actual operations. As a result, these companies artificially formed amounts subject to VAT refund and also expenses that could be deducted from gross income in profit tax calculations.

At the same time, the organization from the initial ring either did not submit tax reports to the tax authorities or submitted distorted data, failing to pay the resulting tax liabilities. Due to the existence of amounts subject to refund among the intermediate operators, tax obligations typically did not arise.

As a result of large-scale measures conducted by the employees of the Investigation and Operational Search Division, it was revealed that the company had issued tax invoices totaling 3.4 billion dram from November 2025 to February 2026 without any delivery of goods or provision of services, causing approximately 557 million dram in damage to the state.

A report about the crime has been forwarded to the Investigative Committee of Armenia, where a criminal case has been initiated based on the characteristics of the crime of creating and providing fake documents without the delivery of goods and the provision of services. An investigation is underway.

The State Revenue Committee urges taxpayers to refrain from issuing tax invoices without the delivery of goods or the provision of services, as well as from creating fake documents regarding expenses and income. The Investigation and Operational Search Division will continue to take consistent steps to uncover the chains of fake transactions, prevent schemes that harm the state budget, and hold the organizers accountable.