SDA Provides Guidance for Importers of Electric Motor Vehicles

The State Revenue Committee (SRC) informs that there will be no procedural changes for those preferring exclusively electric motor vehicles, motorcycles, and bicycles starting January 1, 2020. When importing from a non-member state of the Eurasian Economic Union (EAEU) into the union's customs territory, customs duties payable by individuals and legal entities will be calculated based on the value or customs value according to the rates established under the EAEU Council Decision No. 54 of July 16, 2012 (by corresponding HS codes), while the value-added tax will be determined in accordance with the RA Tax Code.

Only the customs rate set for electric motor vehicles will change; instead of the current 10%, it will be 15%. For motorcycles and bicycles, the customs duty will remain at 14%.

It is worth recalling that until January 1, 2022, the import and sale of exclusively electric motor vehicles, motorcycles, and bicycles will be exempt from VAT according to the RA Tax Code. As before, from 2020, there will also be an environmental tax imposed on electric motor vehicles. There is no environmental tax applied for motorcycles and bicycles.

Notably, for individuals importing electric motor vehicles, motorcycles, and bicycles for personal use, the value must be declared in the passenger customs declaration in accordance with Article 267 of the EAEU Customs Code. For legal entities, the customs value will be declared in the commodity declaration according to Chapter 5 of the EAEU Customs Code. If the value in the submitted documents is not substantiated, the customs authority will determine the value or customs value of the goods.

It is important to note that if you import these transport means in 2019 and register the 'passenger customs declaration' or 'commodity declaration' by December 31, you will be subjected to the rates applicable in 2019, not those of 2020.

The 'transit declaration' is filled out for transferring the vehicle from the border checkpoint to the internal customs authority, which is the customs authority where the customs procedures will actually be carried out with the completion of the 'commodity' and 'passenger customs declarations.' The customs duties will then be calculated based on these declarations. Therefore, if you import, for example, on December 30, and have a 'transit declaration,' but the 'passenger customs declaration' or 'commodity declaration' is registered starting January 1, 2020, the new rates will apply.