Norway to halve VAT exemption threshold for electric vehicles

Norway is set to reduce VAT exemptions for electric vehicles starting January 1. The threshold for VAT exemption will be halved from 300,000 NOK to 150,000 NOK.

This policy change could increase the price of popular electric car models by approximately 40,000 NOK if they are registered in 2027 compared to current rates. Nils Sødal, a senior communications advisor at NAF, advises potential buyers to check prices and delivery times immediately, noting that the registration date determines the applicable VAT rate.

Sødal suggests that consumers looking to save money should consider different brands if their preferred manufacturers cannot guarantee delivery before the end of the year. A previous VAT increase saw the threshold drop from 500,000 NOK to 300,000 NOK, and a NAF study found that most importers did not compensate for those price hikes, suggesting similar trends may occur with the upcoming change.