Electric Vehicle Imports will become VAT-exempt
17 Jan 2019
The RA Government has approved the draft policy on VAT exemption of Electric Vehicle imports.
On January 17, the RA Government approved the Government's legislative initiative on the draft law "On Making Addendum to the Tax Code of the Republic of Armenia", according to which the import of electric motor vehicles will be exempt from value added tax. The exemption is supposed to be in effect until January 1, 2022.
On November 15, 2018 the "Armenia Energy Agency" foundation has launched the Plug.am project with financing from the UNDP GEF Small Grants Program. The project aims to support infrastructure development for electric vehicles (EV) by importing and installing charging stations throughout Armenia, increasing the number of environmentally friendly cars in the country.
The plan is to set up a network of 23 units of 7-22kW second level charging stations in Armenia. The project was welcomed by RA state bodies.
On November 1st, the RA Ministry of Nature Protection proposed a legislative amendment aimed at stimulating the electric vehicles market.
The suggested supplement in the Tax Code is meant to include import of EVs in the VAT-exempt transactions and operations list. The vehicle should not be exported within 365 days after importion, which includes EAEU (Eurasian Economic Union) member states. This approach is meant to prevent export to other EEU Member States and avoid commercial arbitrage. The proposed law is supposed be in effect till January 1, 2022.
The goal of VAT exemption on imports is to reduce greenhouse gas emissions, noise and pollution from vehicular traffic.
According to official data, the current number of electric cars in Armenia does not exceed a few dozens. VAT-exemption on imports will encourage purchases of EVs in the country.