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The taxation of electric and hybrid vehicles with VAT aims to support local production
The taxation of electric and hybrid vehicles with VAT aims to support local production
Since 2019, the import of electric vehicles, and since 2022 both their import and sale, have been exempt from VAT. For hybrid vehicles, a four-year VAT exemption has also been applied starting from 2022.
Nijat Imanov, Head of the Tax Policy Department of the State Tax Service under the Ministry of Economy, stated that these incentives have increased interest in electric and hybrid vehicles and positively contributed to the renewal of the country's vehicle fleet. At the same time, since 2023, individuals engaged in local automobile production have also been exempt from taxes.
In recent years, the volume of local production has increased, and starting next year, the production of electric and hybrid vehicles within the country is planned. The consistent expansion of local production ensures the creation of additional value in the economy.
In this context, the protectionist policy implemented by the government is aimed at stimulating the production of passenger cars, protecting the domestic market, and supporting localization in automobile manufacturing. Accompanying this policy with tax incentives is entirely logical, and the existing tax exemptions serve to develop local industry and expand investment opportunities.
“Currently, the sale of domestically produced passenger cars, including electric and hybrid models, has been exempt from VAT for a period of 10 years starting from 2023. To promote local production and support the green economy, the next stage of tax policy in this sector is planned to begin in 2026. Accordingly, domestically produced electric and hybrid vehicles will be exempt from VAT. In addition, the import of partially assembled electric buses intended for local production will be exempt from VAT until January 1, 2027.”
It should be noted that starting from January 1 of next year, VAT will be applied to the import and sale of hybrid and electric passenger vehicles.
Since 2019, the import of electric vehicles, and since 2022 both their import and sale, have been exempt from VAT. For hybrid vehicles, a four-year VAT exemption has also been applied starting from 2022.
Nijat Imanov, Head of the Tax Policy Department of the State Tax Service under the Ministry of Economy, stated that these incentives have increased interest in electric and hybrid vehicles and positively contributed to the renewal of the country's vehicle fleet. At the same time, since 2023, individuals engaged in local automobile production have also been exempt from taxes.
In recent years, the volume of local production has increased, and starting next year, the production of electric and hybrid vehicles within the country is planned. The consistent expansion of local production ensures the creation of additional value in the economy.
In this context, the protectionist policy implemented by the government is aimed at stimulating the production of passenger cars, protecting the domestic market, and supporting localization in automobile manufacturing. Accompanying this policy with tax incentives is entirely logical, and the existing tax exemptions serve to develop local industry and expand investment opportunities.
“Currently, the sale of domestically produced passenger cars, including electric and hybrid models, has been exempt from VAT for a period of 10 years starting from 2023. To promote local production and support the green economy, the next stage of tax policy in this sector is planned to begin in 2026. Accordingly, domestically produced electric and hybrid vehicles will be exempt from VAT. In addition, the import of partially assembled electric buses intended for local production will be exempt from VAT until January 1, 2027.”
It should be noted that starting from January 1 of next year, VAT will be applied to the import and sale of hybrid and electric passenger vehicles.