The renewable energy sector, and specifically the construction of solar power stations in Armenia, has been experiencing unprecedented growth in recent years. To stimulate the transition to green energy, the state has established significant tax and customs incentives, making the import of solar photovoltaic panels, inverters, and supporting equipment highly profitable for both large businesses (B2B) and individual consumers.
If you plan to import solar systems, it is essential to clearly understand what incentives apply and how to correctly benefit from them at the border.
Value Added Tax (VAT) Exemption
According to the tax legislation of the Republic of Armenia, a special exemption is established for equipment intended for solar energy production:
- VAT Exemption at Import. The import of solar photovoltaic cells (panels) into Armenia is exempt from the 20% VAT at the border, provided they correspond to the specific HS codes defined by law. This allows importers to save significant financial resources at the initial stage.
- Domestic Circulation Incentives. In some cases, the incentive also extends to their subsequent sale in the local market, which reduces the cost of constructing the final solar station.
Customs Duties and EAEU Regulations
Since Armenia is a member of the Eurasian Economic Union (EAEU), the calculation of customs duties is carried out according to unified customs tariffs:
- Imports from EAEU Countries. When importing solar panels or components from Russia, Belarus, or Kazakhstan, no import duty is charged (0%), provided the product has an EAEU certificate of origin (ST-1).
- Imports from Third Countries (China, Europe, USA). In this case, the duty rate depends on the specific HS code of the product. For solar panels, a 0% or reduced duty rate often applies, but for supporting equipment (inverters, cables, mounting structures), standard duties may apply.
Crucial Equipment Requiring Correct Classification
A solar station is not just panels. To avoid risks when importing the entire system, careful attention must be paid to the declaration of the following components:
- Inverters (Converters). They have their own separate code. Their taxation and incentive conditions may differ from those of the panels themselves.
- Storage Batteries (Lithium-ion, etc.). Batteries imported especially for autonomous (Off-grid) stations are subject to special customs declaration and sometimes environmental taxes.
- Aluminum or Metallic Structures. These are often treated as ordinary metal products and are taxed on general grounds.
How to Ensure Smooth Customs Clearance and Secure Incentives
The key to fully utilizing the incentives is the absolute accuracy of the HS codes and the availability of accompanying technical documentation. Customs authorities require a clear technical data sheet of the product to ensure that the imported item is strictly intended for the solar energy sector and not for other commercial purposes. Incorrect coding can lead to the cancellation of the incentive and the imposition of penalties.
If you wish to import solar panels and solar stations, you can contact our company. Professional customs brokers through the Brokers.am platform will help you correctly select product codes, pre-calculate all expenses, apply all legally established tax and customs incentives, and ensure the rapid and safe clearance of your cargo.
