The government is extending the existing value added tax (VAT) exemption for electric vehicles for another year.
During the session of the government on October 16, RA Minister of Economy Gevorg Papoyan presented the relevant project.
"The current concession provides that large, medium and small buses, passenger cars, motorcycles and mopeds with an electric motor are exempt from VAT until January 1, 2026. Taking into account the positive results, it is proposed to extend the term by one more year, until December 31, 2026," said Papoyan.
The minister reminded that the privilege effective since 2019 has significantly promoted the import of electric vehicles to Armenia. According to his data, 9,635 electric vehicles were imported in 2023, which increased by 75 percent compared to 2022, 11,793 units were imported in 2024, which increased by 22 percent compared to 2023, and compared to 2019, the increase was about 17.6 times.
In addition, Papoyan noted that Armenia continues to use the customs duty exemption quotas established by the decision of the Customs Union Commission.
In particular, for the years 2023, 2024 and 2025, an annual import quota of 8,000 units of electric cars is planned, in which case no customs duty is charged.
"From the beginning of this year to October 14, 14,888 electric cars, 3 buses, as well as 2,634 motorcycles and mopeds were imported into Armenia, which once again proves the effectiveness of the privileges," the minister noted.
