The VAT Exemption for Electric Vehicles Extended by Another 2 Years

The government has approved a draft law on amendments to the Tax Code of the Republic of Armenia. With the adoption of this law, favorable conditions will be created to encourage the acquisition and use of electric vehicles in the country, to ensure the continuity of already recorded positive outcomes, and to reduce air pollution from mobile sources.

The draft law stipulates extending the VAT exemption established by law for another two years, until January 1, 2024. According to the justification, a favorable environment has been created in the republic to encourage the acquisition and use of electric vehicles. From 2019 to 2021, more than 5,200 electric vehicles were imported (only 12 electric vehicles were imported in 2018).

During 2018-2020, over 20 charging stations were installed in almost all regions of the republic as part of the “Plug.am - Promoting Electric Vehicles in Armenia” grant program implemented by UNDP/GEF, and a main map for the placement of charging stations has been developed. The Ministry of Education, Science, Culture and Sports plans to include the specialty of technical maintenance and repair of electric vehicles among the specialties of state educational institutions implementing medium vocational education programs for 2021/2022.

The legislative initiative has been deemed urgent and will be presented to the National Assembly in the prescribed manner. The government also approved the draft law on amendments and changes to the Code of Administrative Offenses of the Republic of Armenia. The adoption of the draft will define the right of the State Revenue Committee of the Republic of Armenia to suspend or extend administrative proceedings, and clarify the deadlines for imposing administrative fines in suspended or extended administrative proceedings. The draft will also clarify the scope of powers reserved for the tax authority in cases related to administrative offenses.