Armenia extends VAT exemption as electric vehicle imports continue to surge

The Armenian government is extending 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 of electric vehicles into Armenia.

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 by approximately 17.6 times, according to the minister's data. 

Papoyan also noted that Armenia continues to benefit from customs duty exemption quotas set by the Eurasian Economic Union Commission. Specifically, for the years 2023, 2024, and 2025, Armenia has been allocated a quota of 8,000 electric vehicles per year that can be imported without customs duties.

“From the beginning of this year through October 14, Armenia has imported 14,888 electric vehicles, 3 electric buses, and 2,634 motorcycles and mopeds—yet another indication of the effectiveness of these incentives,” the minister concluded.