Extension of VAT Benefits for Battery Electric Passenger Vehicles in Norway

• The Norwegian Ministry of Finance notifies the EFTA Surveillance Authority of the extension of VAT benefits for battery electric passenger vehicles
• The extension includes a zero VAT rate on supply and import of battery electric passenger vehicles up to a threshold of NOK 500,000
• Standard VAT rate of 25 percent applies to amounts exceeding the NOK 500,000 threshold
• Zero VAT rate also extended for leasing of battery electric passenger vehicles with similar threshold rules
• Current VAT exemptions are approved until 31 December 2024
• Proposed extension of these measures from 1 January 2025 to 31 December 2026
• Applies specifically to battery electric passenger vehicles including passenger cars, motorcycles, mopeds, motor caravans, 5 seat combi vans, and minibuses
• Commercial electric vehicles like class 2 vans, trucks, and buses will remain subject to the standard VAT rate
• Battery electric vehicles are defined as vehicles powered solely by electric motors and rechargeable batteries
• Fuel cell electric vehicles, which use a fuel cell for power, are not included in this VAT benefit extension
• The VAT exemption for fuel cell electric vehicles was removed starting 1 January 2024
• The term electric vehicles in the document refers specifically to battery electric vehicles
• The zero VAT rate and leasing rules aim to ensure equal treatment for both purchasing and leasing of battery electric passenger vehicles
• The government believes these measures are likely constitutional

Source: regjeringen.no

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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