Electric vehicles in Azerbaijan to be subject to VAT starting next year, says customs chairman

Starting next year, electric motor vehicles will be subject to value-added tax (VAT), said the Chairman of the State Customs Committee, Shahin Baghirov, during the discussion of the draft law “2026 State Budget Envelope of the Republic of Azerbaijan” at the session of the Milli Majlis (Azerbaijani Parliament) Committee on Economic Policy, Industry, and Entrepreneurship/

Shahin Baghirov said that revenues through the customs line usually come from import operations: “Customs tariffs are applied during import. Our budget revenues are mainly formed from VAT. Electric vehicles will be subject to VAT. Although this exemption will be canceled, it has been in effect for more than 5 years. During the first 10 months of 2025, 1,760 electric vehicles were imported into the country. This is a very small number, as in 2024, this figure was 3,027 units. This shows that public interest in electric vehicles is decreasing. The application of VAT will, in one way or another, have a positive impact on local electric vehicle production.”