Appeal body rejects VAT on electric cars registered in 2024

Conflicting provisions in the duties law mean VAT cannot be charged on electric cars registered between 1 April and 31 December 2024, KVF reports. The appeal body has annulled a decision by Akstovan, the vehicle registration authority.

Akstovan had charged VAT on an electric car registered on 19 December 2024.

The appeal body said the duties law was difficult to interpret in any way other than as requiring electric cars registered during that period to pay VAT. At the same time, the law exempts the same vehicles from that obligation.

Because the rules are unclear and ambiguous, and because tax matters are subject to strict requirements for legal authority, the appeal body concluded that the duties law does not provide a legal basis for charging VAT on electric cars registered from 1 April through 31 December 2024.