Electric trucks without VAT

07-09-2020

The Ministry of Environment has submitted a new draft for public discussion: it is proposed to exempt from VAT the import of electric trucks weighing up to 5 tons.
Taking into consideration the significance of reducing air pollution as a result of harmful emissions from trucks, inclusive of the great interest in importing electric trucks by electric vehicle importers, presently, here is an essential to exempt from VAT the import of electric trucks weighing up to 5 tones.
Earlier, on July 1, 2019, the RA law on “Making amendments to the RA Tax Code” entered into force, according to which the import and alienation of electric vehicles (passenger vehicles, motorcycles, mopeds) are exempt from VAT.
 By the adoption of the law, there have been created favorable conditions for encouraging the acquisition and use of electric trucks in the republic to reduce air pollution (trucks mostly run on diesel fuel, the use of which is one of the main causes of air pollution from mobile sources).
After this amendment, compared to 2018, only in the first half of 2020, the import of exclusively electric vehicles into Armenia increased approxiametly 155 times:
 2018 – 12 transport vehicles  
2019 (second half) – 668 vehicles   
2020 (first half) - 1863 transport vehicles
 It should be noted that the increase in the quantity of electric trucks will directly prompt the consumption of electricity in the republic at night, as the charging of electric vehicles is mostly conducted at night.
Meanwhile, the considerable increase in the quantity of electric vehicles will also contribute to the development of the necessary infrastructures (charging stations, repair points, etc.) for their operation.
 

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