Norway’s 2026 budget proposes two major VAT-related changes: a phased reduction of electric vehicle benefits and tighter rules for cross-border services.
Here are the key VAT measures outlined in Prop. 1 LS (2025–2026) from the Norwegian Ministry of Finance:
⚡ 1. Reduced VAT Threshold for Electric Vehicles
- The VAT exemption for electric vehicles will be limited to vehicles priced under NOK 300,000 starting in 2026.
- This marks the beginning of a phase-out of VAT benefits, with full removal planned for 2027.
- The government argues that subsidizing car purchases through VAT is no longer justified, as 95% of new cars sold are already electric.
2. Closing VAT Loopholes in Cross-Border Services
- From 1 July 2026, Norway will tighten VAT rules on international trade in services.
- The goal is to prevent foreign companies from receiving more favorable VAT treatment than domestic firms.
- This measure is expected to generate NOK 400 million in additional revenue in 2026
Source regjeringen.no
Latest Posts in "Norway"
- Norway Proposes Mandatory Digital Bookkeeping and E-Invoicing to Modernize Business and Financial Regulation
- Norway: Data Center Services Deemed Multiple Supplies for VAT, Not a Single Unified Supply
- Norway Requires Split VAT for Data Center Services to Foreign Customers With Customer-Owned Servers
- Norway Clarifies VAT Rules for Data Center Services Provided to Nonresidents
- Government Proposes Mandatory E-Invoicing and Other Financial Market Law Changes from 2027
