Norway Proposes Further Reduction of Electric-Vehicle VAT Exemption in 2027

Summary

Norway’s 2027 budget proposes reducing the electric passenger-car VAT exemption threshold from NOK 300,000 to NOK 150,000.

The standard 25% VAT rate would apply to the part of the purchase price exceeding the proposed threshold.

The change is proposed for 1 January 2027 and is not final until the budget measure is adopted.

Extended article

Norway’s 2027 budget proposes another step in the gradual phase-down of VAT support for battery-electric passenger cars. The exemption threshold would fall from NOK 300,000 in 2026 to NOK 150,000 from 1 January 2027. VAT at the standard 25% rate would apply only to the portion of the qualifying purchase price above the threshold.

The proposal should not be described as a full removal of the exemption in 2027. The first NOK 150,000 would remain within the relief under the budget proposal. The tax result depends on the final adopted measure and the transaction’s relevant timing. Vehicle suppliers and purchasers should therefore distinguish an order date from the legally relevant supply or delivery date under the final rules.

Exact sources