background image

Belarus Amends Tax Incentives for Electric Vehicles — Orbitax Tax News & Alerts

Belarus has published Decree (Edict) No. 447 of 22 November 2021, which amends Decree (Edict) No. 92 of 12 March 2020 on incentives for electric vehicles. Certain aspects are largely maintained, including that the incentives are available until 31 December 2025. This includes that legal entities can deduct the cost of acquiring electric vehicles in full in the year of acquisition, although further clarification is provided. The deduction for the cost of investments in battery charging stations is also largely maintained, including a 100% deduction in 2020, 80% in 2021, 60% in 2022, 40% in 2023, and 30% in 2024 and 2025.

Most of the changes as compared to the original decree concern VAT incentives. These include:

  • A VAT exemption on the import of electrical vehicles into Belarus provided the vehicle is no older than 5 years;
  • A VAT exemption on the import of components into Belarus for the manufacture of electrical vehicles; and
  • A VAT exemption on the sale of electric vehicles in Belarus, with individuals who purchased an electric vehicle prior to 1 December 2021 allowed to claim a refund of VAT paid limited to 500 base units as on the day of purchase (1 unit = BYN 29 for 2021).

Decree (Edict) No. 447 is generally effective from 1 December 2021, although the adjustments regarding deductions apply from 1 January 2021.