Armenia extends VAT-free import exemption for electric vehicles

ArmInfo.Armenia extends VAT-free import exemption for electric vehicles. Amendments to the RA Tax Code were approved at a government meeting on October 16.

According to RA Minister of Economy Gevork Papoyan, the amendments  provide for an extension of the preferential tax system for imported  electric vehicles, electric buses, trolleybuses, motorcycles, and  mopeds for another year-from January 1 to December 31, 2026.  Currently, these vehicles are exempt from VAT until January 1, 2026.  This exemption has been in effect since 2019, and given the positive  results, it has been deemed appropriate to extend it until December  31, 2026.

At the same time, a customs duty exemption is also in effect for the  import of electric vehicles. According to the Eurasian Economic  Commission, 7,000 vehicles were imported into Armenia from third  countries in 2022, and the established quota for 2023-2025 was 8,000  electric vehicles per year.

As a result of tax incentives, the volume of electric vehicle  deliveries to the republic's domestic market has increased  significantly. Specifically, 10,980 vehicles were imported in 2023, a  78% increase compared to the previous year. In 2024, these volumes  exceeded 11,700 units (a 22% increase). This year, according to the  State Revenue Committee, 3 electric buses and 14,888 cars were  imported into Armenia, which is already 3,000 more than the entire  previous year. 2,634 motorcycles and mopeds were also imported.   Papoyan noted that the proposed tax break on imported vehicles will  only apply to electric vehicles manufactured in 2024 and later.