🍇🚀 Wildberries Grew 35 Times in 1 Year
For Q4 2023, Wildberries company is the 4th largest taxpayer, with its taxes growing 35 times in one year.
The same trend is observed with Mobile Center and Vesta companies, whose tax revenues increased by 2.6 and 3.9 times respectively over one year. These companies are also among the top 5 largest taxpayers in 2023.
Let’s look at each company.
Wildberries
Wildberries became the 4th largest taxpayer in Q4 2023, paying 13.9 billion drams in taxes. In Q4 2023, only “Grand Tobacco” (24.3 billion drams), “Zangezur Copper-Molybdenum Combine” (18.5 billion drams), and “Mobile Center Art” (16.0 billion drams) companies were ahead of it.
It should be noted that for the entirety of 2023, Wildberries ranks 6th, having paid 26.5 billion drams in taxes, with more than half of that amount paid in the last quarter.
Just two years ago, Wildberries company was below the 400th position in the list of Armenia’s largest taxpayers. In 2022, this organization paid 0.8 billion drams in taxes, growing 35 times in one year.
It should be noted that only 70.3 percent of the 762 million drams in taxes paid by this organization in 2022 was Value Added Tax (VAT), while 21.6 percent was income tax. The share of actually paid income tax increased in 2023, but the share of income tax significantly decreased because this organization’s VAT payments grew 48 times within 1 year.
Under such rapid, exponential growth conditions, Wildberries could become the largest taxpayer next year. 97.5 percent of Wildberries’ taxes are VAT; it has not paid customs duties because Armenia is a member country of the EAEU.
Table 1. Wildberries, 4th largest taxpayer in Q4 2023
Mobile Center
95.5 percent of Mobile Center organization’s taxes are Value Added Tax, which is comparable to Wildberries company. Moreover, in 2023, total tax payments increased 2.6 times compared to 2022 (from 17.6 billion drams to 46.1 billion drams), and 10.4 times compared to 2021.
From January to November 2023, Armenia exported smartphones equivalent to 442.3 million USD, which were mainly imported from Vietnam and re-exported to Russia. Smartphone exports alone accounted for 6 percent of total exports.
Figure 2. Mobile Center, 3rd largest taxpayer in Q4 2023
While alcoholic beverages, primarily Armenian brandy, held the first place in exports to Russia until 2021, now it is phones and consumer electronics.
Figure 3. Smartphone Exports and Imports in Armenia
We have created an online platform that evaluates and forecasts Armenia’s exports by various regions and products. The platform provides more than 2000 forecasts.
More than 2000 forecasts: Armenia’s exports.
“PRETTY WAY” LLC (Vesta)
Unlike Wildberries and Mobile Center, Pretty Way (Vesta) company received only 62.1 percent of its tax revenues from Value Added Tax. It is noteworthy that, unlike the aforementioned companies, Pretty Way pays significant customs duties. In 2023, total tax revenues amounted to 33.3 billion drams, with customs duties making up 29.5 billion drams or 88.6 percent. Customs duties are usually calculated based on the customs value, including the value of imported goods along with all applicable taxes, including Value Added Tax. Therefore, a portion of customs revenues includes the VAT on imported goods.
This is also evidenced by the fact that 17.7 billion drams (53 percent) of indirect taxes were returned to Pretty Way from the prepared budget in 2023. Such refunds are mainly made from the return of indirect taxes related to the movement of goods from one state to another.
Pretty Way company’s tax revenues in 2023 increased 3.9 times compared to 2022 (from 8.5 billion drams to 33.3 billion drams), and 16.5 times compared to 2021. It should be noted that household appliances (computers, monitors, televisions, printers) constitute a significant percentage of RA exports. In 2023, electrical equipment (two-digit code 85 of foreign economic activity) accounted for 13 percent of exports.
Figure 4. Vesta (Pretty Way), 5th largest taxpayer in Q4 2023
English Summary
🍇🚀 Wildberries Grew 35 Times in 1 Year
For Q4 2023, Wildberries company is the 4th largest taxpayer, with its taxes growing 35 times in one year.
The same trend is observed with Mobile Center and Vesta companies, whose tax revenues increased by 2.6 and 3.9 times respectively over one year. These companies are also among the top 5 largest taxpayers in 2023.
Let’s look at each company.
Wildberries
Wildberries became the 4th largest taxpayer in Q4 2023, paying 13.9 billion drams in taxes. In Q4 2023, only “Grand Tobacco” (24.3 billion drams), “Zangezur Copper-Molybdenum Combine” (18.5 billion drams), and “Mobile Center Art” (16.0 billion drams) companies were ahead of it.
It should be noted that for the entirety of 2023, Wildberries ranks 6th, having paid 26.5 billion drams in taxes, with more than half of that amount paid in the last quarter.
Just two years ago, Wildberries company was below the 400th position in the list of Armenia’s largest taxpayers. In 2022, this organization paid 0.8 billion drams in taxes, growing 35 times in one year.
It should be noted that only 70.3 percent of the 762 million drams in taxes paid by this organization in 2022 was Value Added Tax (VAT), while 21.6 percent was income tax. The share of actually paid income tax increased in 2023, but the share of income tax significantly decreased because this organization’s VAT payments grew 48 times within 1 year.
Under such rapid, exponential growth conditions, Wildberries could become the largest taxpayer next year. 97.5 percent of Wildberries’ taxes are VAT; it has not paid customs duties because Armenia is a member country of the EAEU.
Table 1. Wildberries, 4th largest taxpayer in Q4 2023
Mobile Center
95.5 percent of Mobile Center organization’s taxes are Value Added Tax, which is comparable to Wildberries company. Moreover, in 2023, total tax payments increased 2.6 times compared to 2022 (from 17.6 billion drams to 46.1 billion drams), and 10.4 times compared to 2021.
From January to November 2023, Armenia exported smartphones equivalent to 442.3 million USD, which were mainly imported from Vietnam and re-exported to Russia. Smartphone exports alone accounted for 6 percent of total exports.
Figure 2. Mobile Center, 3rd largest taxpayer in Q4 2023
While alcoholic beverages, primarily Armenian brandy, held the first place in exports to Russia until 2021, now it is phones and consumer electronics.
Figure 3. Smartphone Exports and Imports in Armenia
We have created an online platform that evaluates and forecasts Armenia’s exports by various regions and products. The platform provides more than 2000 forecasts.
More than 2000 forecasts: Armenia’s exports.
“PRETTY WAY” LLC (Vesta)
Unlike Wildberries and Mobile Center, Pretty Way (Vesta) company received only 62.1 percent of its tax revenues from Value Added Tax. It is noteworthy that, unlike the aforementioned companies, Pretty Way pays significant customs duties. In 2023, total tax revenues amounted to 33.3 billion drams, with customs duties making up 29.5 billion drams or 88.6 percent. Customs duties are usually calculated based on the customs value, including the value of imported goods along with all applicable taxes, including Value Added Tax. Therefore, a portion of customs revenues includes the VAT on imported goods.
This is also evidenced by the fact that 17.7 billion drams (53 percent) of indirect taxes were returned to Pretty Way from the prepared budget in 2023. Such refunds are mainly made from the return of indirect taxes related to the movement of goods from one state to another.
Pretty Way company’s tax revenues in 2023 increased 3.9 times compared to 2022 (from 8.5 billion drams to 33.3 billion drams), and 16.5 times compared to 2021. It should be noted that household appliances (computers, monitors, televisions, printers) constitute a significant percentage of RA exports. In 2023, electrical equipment (two-digit code 85 of foreign economic activity) accounted for 13 percent of exports.
Figure 4. Vesta (Pretty Way), 5th largest taxpayer in Q4 2023