ArmInfo.Armenia will extend the VAT exemption for imported electric vehicles for a year. Armenia's parliament is considering a bill on introducing amendments to the Tax Code.
Deputy Minister of Economy Narek Teryan stated the draft decision plans to extend until January 1, 2025 the period of validity of the exemption for the import and alienation of vehicles, in particular large and medium buses, cars, motorcycles, mopeds operating exclusively on electric traction. Teryan emphasized that the purpose of the document is to activate the market, especially the secondary market. For this reason, both the import of electric vehicles and their sale are subject to VAT exemption.
According to the explanation to the document, during 2021-2022, 100 charging stations have been installed and operated in the republic, through which 150 cars with an electric motor can be simultaneously charged. The Deputy Minister recalled that on March 17, 2022, the Council of the Eurasian Economic Commission (EEC) established quotas for duty-free import of electric vehicles, including for Armenia. In relation to Armenia, the quota for 2022 was 7 thousand cars, for 2023 - 8 thousand. Only citizens of Armenia, Belarus, Kyrgyzstan and Kazakhstan will be able to resell cars imported within the quota
The Armenian government reduced this figure to 7,400, keeping 600 units as a reserve to insure importers - official representatives of automakers - from possible risks.
As a result, as Teryan pointed out, in 2022, compared to 2021, the volume of imports of electric vehicles increased by 1.8 times, and compared to 2020, by approximately 12 times. The volume of imports of electric motorcycles and mopeds in 2022 increased by 3.8 times compared to 2021.
The Deputy Minister said that work is currently underway to transfer all vehicles of government agencies to electric vehicles. The corresponding draft decision will be presented by the Ministry of Environment. The tax benefit for exemption from VAT on the import of electric vehicles was established in 2019.
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