VAT Does Not Apply When a Private Individual Sells a Car, Tunyan

“There is this issue: for the same car, with the same technical specifications, in certain cases, a very high or, as it is called, marketing horsepower is taken into account, and a high property tax is calculated for it. There are instances where people undergo evaluations, paying a considerable amount for it, based on which lower horsepower values are taken, and they end up paying less property tax,” stated Babken Tunyan, a member of the Civil Contract party, today in parliament.

It should be noted that the parliament is discussing the extension of the one-year VAT exemption for citizens, both natural and legal persons, who import electric vehicles. “They are currently working to establish a system where baseline data from the EAEU register will be used, and there will be no need for evaluation; in other words, a solution to this issue will be reached in the coming days,” he informed.

Regarding the second issue, according to the MP, information is spreading that since the VAT exemption will only apply to cars up to 2 years old, this means that later, if a person sells their electric vehicle that is 3-4-5 years old, they will have to pay VAT. “I want to clarify that this is not the case, and VAT does not apply when a private individual sells a car, not only an electric vehicle but any other car as well. This information is incorrect,” added Tunyan.