Car dealers in Norway report sharply increased demand since the government proposed lowering the VAT exemption threshold for electric cars. Many buyers therefore want to register their cars before the turn of the year.
Norway has had a VAT exemption for certain electric cars for an extended period, aimed at enabling more Norwegians to invest in one. In its budget proposal for next year, which the Norwegian government presented in early October, it now wants to lower the threshold for VAT exemption on electric cars.
Currently, the threshold for VAT exemption on an electric car is 500,000 Norwegian kroner (approximately €42,000), but the proposal would lower it to 300,000 Norwegian kroner (approximately €25,000). If the change is approved, it will take effect on January 1, 2026, with the goal of completely eliminating the VAT exemption by 2027.
— We have had a goal that all new passenger cars should be electric by 2025, and with an electric car share of 95 percent this year, we can say the goal has been achieved in practice. Therefore, it is time to phase out the benefits, said Finance Minister Jens Stoltenberg in a press release, according to alltomelbil.se.
In practice, this means that an electric car in the price range of €42,000 will become approximately €4,200 more expensive after the turn of the year. The only way to avoid the new fee is to have the car registered before the proposal takes effect.
Importing from Sweden
Following the announcement, the country's car dealers now report increased demand for electric cars. Volvo Car Norway describes the situation as a period of "very strong demand" from customers who want to secure a car before the change takes effect.
— We are now working to meet the demand, including by sourcing cars from other markets, such as Sweden, says Henrik Juel Teige, press contact at Volvo Car Norway, to Norwegian Motor.
Ford and Tesla in Norway also confirm the trend and say that more customers are asking questions and placing orders. The importer Harald A. Møller, which represents Audi, Cupra, Skoda and Volkswagen, has chosen to meet the demand with a special VAT guarantee – customers who enter into a new agreement with the company from October 28 until next year's state budget is approved will be covered for any VAT increase.
— To handle the great uncertainty we see, we are prepared to cover any VAT increases for customers who order a new car from our brands now, before next year's state budget is approved, says CEO Ulf Tore Hekneby.
The final decision will be made in December when the Storting (Norwegian Parliament) votes on next year's budget.





 
															 
															