The government proposes to abolish the VAT exemption for electric cars from 1 January 2023, and replace the exemption with a subsidy scheme.
The subsidy scheme aims at a level of support that corresponds to a VAT exemption up to a purchase price of NOK 500,000. This means that only the most expensive electric cars will increase in price. The government will return to the final design of the scheme in the state budget for 2023.
– We are announcing this now, to provide predictability for car buyers and the car industry. We will continue to support those who want to buy a regular electric car, but it is not the community’s job to finance the purchase of the most expensive and beautiful electric cars for those who can afford it. Today, you can buy electric cars with a long range in all price ranges. We therefore believe that it is right that those who choose to buy the most expensive cars also pay some VAT to the community, says Minister of Finance Trygve Slagsvold Vedum (Sp).
The reorganization will take effect from 1 January 2023, if adopted.