YEREVAN. - The Armenian Government has for the second time approved the draft on abolishing VAT on the import of cars by natural persons.

The draft was drawn up by the ruling Republican Party of Armenia (RPA) MPs Vardan Ayvazyan and Garegin Nushikyan.

On February 25, the Government already approved the draft amendments to the Law on VAT with almost similar content.

Pursuant to the draft, VAT will not be levied for the cars imported from the Eurasian Union countries for non-business purposes (i.e. not more than one item in a year), since the citizens almost always buy these cars from resale. Therefore, their VAT is already paid, and there can’t be double taxation within the Eurasian Union.  

When importing cars from outside EEU, VAT and customs duty (in the amount of 32 percent) will be levied on the border.