The airport in Abkhazia has been exempted from VAT. Will this make flights more attractive?
Abkhazia airport exempt from VAT
Sukhum Airport has been exempted from value-added tax (VAT). This move is aimed at making flights to the republic more attractive, following the announcement that the airport had suspended operations on October 25 “due to a lack of passengers.”
The Abkhazian parliament amended the “Law on Value-Added Tax” to set a zero VAT rate on services provided by the Sukhumi Airport operator for international air transport by foreign airlines.
A total of eight services are covered by this zero rate.
In this context, “foreign airlines” refers to Russian carriers, as no other airlines are able to fly there.
It is expected that the zero VAT rate will reduce the cost of airline tickets and allow airport service fees to be lowered.
According to lawmakers, this is how the Abkhaz side is effectively investing in the development of air connections with the republic, making it profitable for airlines.
So far, such flights have not proven to be economically viable, especially after the end of the tourist season, as most passengers on flights to Abkhazia were Russian tourists.
Beslan Khalvash, head of the parliamentary committee on budget and economic policy, explained that the tax break is temporary and that the parliament can revoke it at any time.
Sukhumi Airport resumed operations in May 2025 after 32 years of inactivity. Initially, it was planned that the airport would serve up to one million passengers by the end of the year, but the actual figures were much lower.
From May 1 to October 25, around 118,000 passengers arrived in Abkhazia.
Due to low demand for flights to Abkhazia, the airport has effectively “gone on winter break” from October 25 until the start of the new tourist season.
There is only one exception. At the request of the Abkhaz government, starting November 1, Russian airlines will operate two flights per week to Sukhumi – on Wednesdays and Saturdays. These flights will be funded by the Russian budget.
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