The Armenian government has approved amendments to the Tax Code to extend the current Value Added Tax (VAT) exemption for electric vehicles by another year.
The decision was announced by Minister of Economy Gevorg Papoyan during the October 16 Cabinet meeting.
“Under the current exemption, large, medium, and small buses, passenger cars, motorcycles, and mopeds with electric engines are exempt from VAT until January 1, 2026. Given the positive outcomes, we propose extending the deadline by another year—until December 31, 2026,” Papoyan said.
The minister recalled that since its introduction in 2019, the exemption has significantly boosted the import and use of electric vehicles in Armenia.
Papoyan noted that Armenia also maintains a zero customs duty on electric vehicles imported from third countries, further supporting the country’s transition toward cleaner and more sustainable transportation.
According to the Eurasian Economic Union Commission, Armenia continues to benefit from customs duty exemption quotas for electric vehicle imports. The quota was set at 7,000 units in 2022 and increased to 8,000 units per year for 2023, 2024, and 2025, allowing imports of electric vehicles without customs duties.
In 2023, 9,635 electric vehicles were imported, marking a 75% increase compared to 2022. In 2024, that number rose to 11,793, a 22% increase from the previous year. Compared to 2019, the import volume has increased approximately 17.6 times, according to the minister’s data.
Papoyan emphasized that the proposal to extend the VAT exemption will apply only to electric vehicles manufactured in 2024 and later, a move that carries both economic and environmental benefits.
From the beginning of 2024 through October 14, Armenia imported 14,888 electric vehicles, 3 electric buses, and 2,634 motorcycles and mopeds—further demonstrating the effectiveness of these incentives.
