- Phase
- Parliament decision on excise taxes for the budget year 2023, Value added tax act, Tax act
- Native name
- Stortingsvedtak om særavgifter for budsjettåret 2023, Lov om merverdiavgift, Lov om skatt av formue og inntekt (skattelven)
- Type
- Company incentives to deploy electric vehicles
- Added to database
- 15 April 2021
Article
Section 7 of 'A. Vehicle Import Duty' in Chapter of 'Taxes on motor vehicles etc.' of Parliament decision on excise taxes for the budget year 2021; Section 6-7 of Value added tax act; Section 5-13 of Tax act
Description
Electrical vehicles are exempted from part of the import duty that applies to all motor vehicles. As import duties tend to be relatively high in Norway compared to EU countries, this exemption is meant to be a push factor for companies and individuals to choose electrical vehicles to vehicles with an internal-combustion engine. While all vehicles has to pay a one-off registration tax based on the wight of the vehicle, they are expected from the general part of this duty that is calculated based on the vehicle's tax group, kerb weight, CO2 emissions, NOx emissions and cylinder capacity. For a vehicle of 1600 kg and CO2 emission of 160 g/km, the tax would be around NOK 220,000 (€ 22,000). The tax is progressive, making big cars with high emissions more expensive than smaller cars.
For electrical vehicles costing up to NOK 500,000 (€ 50,000), no VAT duty applies, and for those exceeding this price, the duty is only imposed on the part of the price exceeding this threshold. Electrical vehicles are also exempted from the value added tax act when it comes to sale and leasing agreements running for at least 30 days.
Citation
Eurofound (2021), Norway: Company incentives to deploy electric vehicles, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/company-incentives-to-deploy-electric-vehicles/norway