Armenia extends electric vehicle tax incentives until December 2026

Armenia plans to extend value-added tax (VAT) exemptions for electric vehicles until 31 December 2026. The move, announced by Economy Minister Gevorg Papoyan in the National Assembly on Wednesday, will cover the import of electric buses, cars, motorcycles and mopeds.

Currently, electric vehicles are exempt from VAT until 1 January 2026 and imports from third countries also benefit from customs duty relief. According to the minister, these incentives have significantly boosted electric vehicle imports.

In 2023, imports rose by 75% to 9,635 units compared with 2022, while 2024 saw a further 22% increase to 11,793 vehicles. Compared with 2019, imports have grown nearly 18-fold. So far this year, Armenia has imported seven electric buses, 16,381 cars and 2,479 mopeds, with projections suggesting a doubling of car imports compared with last year.

The extended exemptions will apply only to vehicles manufactured from 31 December 2023 onwards, covering 2024–2026 production models.