How customs duties changed in 2026: The complete guide

Since the start of 2026, several important customs changes have taken effect for car imports into Azerbaijan. If you're planning to buy a vehicle from Copart, IAAI, or another US auction, these changes can directly affect your total cost.

Hybrid vehicles lost their VAT exemption

Previously, hybrid vehicles ≤3 years old with engines ≤2500cm³ were exempt from 18% VAT. Even though this exemption had been in place for more than 5 years, it was cancelled as of January 1, 2026, and was not renewed — confirmed directly by the Chairman of the State Customs Committee.

In practical terms: importing a hybrid now means paying full 18% VAT on top of the other taxes (customs duty, excise) — no special treatment anymore.

Electric vehicles — better off, but not fully exempt anymore either

The good news: electric vehicles are still fully exempt from customs duty and excise tax (for vehicles ≤3 years old). That part hasn't changed.

But on the VAT side, electric vehicles saw the same change as hybrids — VAT now applies as of 2026. So importing an EV still exempts you from two major taxes (duty and excise), just not VAT anymore.

The 7-year rule now depends on fuel type

Per Tax Code Article 190.4.1-4, the excise multiplier applied to vehicles more than 7 years past their production date has also changed — and it's now fuel-type specific:

• Petrol-engine vehicles: the multiplier rose from 1.2× to 1.5×
• Diesel-engine vehicles: the multiplier rose from 1.5× to 2.0×

This means importing an older (7+ year) diesel vehicle is now noticeably more expensive than an equivalent-age petrol vehicle, purely from the excise tax side.

What should you do?

If you're planning to import a vehicle, use our customs calculator to see the real numbers — all of these changes are already built into the calculations. If you're specifically considering an older diesel vehicle, it's worth comparing against the petrol equivalent too.