Armenia to extend VAT exemption on imported electric vehicles for another year

YEREVAN, December 2. /ARКА/. Armenia intends to prolong the VAT exemption on imported electric vehicles for an additional year, as disclosed by Economy Minister Gevorg Papoyan today.

Presenting a series of related amendments to the Tax Code during a parliamentary session, he highlighted that the exemption is applicable to both individuals and legal entities (dealers importing electric vehicles).

He stated that this new regulation will take effect in 2026 for electric vehicles manufactured after December 31, 2023 (i.e., those produced in 2024, 2025, and 2026).

"Between 2022 and 2024, Armenia not only had a VAT exemption but also a customs duty exemption quota. In 2022, approximately 7,000 electric vehicles were imported, followed by 8,000 in 2023-2025, and 9,635 in 2023, marking a 75% increase compared to 2022. Additionally, in 2024, 11,793 units were imported, reflecting a 22% increase compared to 2023. Therefore, in 2024, electric vehicle imports to Armenia rose by 17.6 times compared to 2019," the minister reported.

Papoyan mentioned that from the start of 2025 until November 19, nearly 19,000 electric vehicles (including 16,381 cars, 7 buses, and 2,479 motorcycles or mopeds) were imported into Armenia.

"The passage of the bill will foster favorable conditions for encouraging the purchase and use of electric vehicles, as well as for achieving green economy objectives," Papoyan stated.

He added that the proposed incentives are completely in line with government policy, including the recently adopted green taxonomy and strategic program for a green and sustainable economy.

"These incentives will also aid in the development of essential infrastructure, attract additional investments in the sector, create new jobs, and enhance Armenia's taxi fleet and energy security," the minister emphasized.-0-