Norway EV VAT 2027: the exemption threshold halves to NOK 150,000 – what it adds to your car price
Norway’s government wants VAT on electric cars above NOK 150,000 from 1 January 2027. We have worked out what that means for cars priced from NOK 200,000 to 700,000, what happens to leases, and why the car must be registered to you by 31 December.
Yes – Norway’s government proposes that from 1 January 2027, electric cars will carry 25 per cent VAT on the part of the price above NOK 150,000, down from today’s NOK 300,000 threshold. For an EV costing NOK 300,000 or more before VAT, that means up to NOK 37,500 extra. What counts is when the car is registered to the buyer, not when it was ordered.
- The proposal: the VAT exemption for electric cars will only cover the first NOK 150,000 from 1 January 2027 (currently NOK 300,000), according to Prop. 1 LS (2026–2027), presented on 7 October 2026.
- Extra cost: NOK 12,500 for a car priced at NOK 200,000, and NOK 37,500 for any EV priced at NOK 300,000 or more before VAT.
- The deadline: the car must be delivered – registered to the buyer in the vehicle register – by 31 December 2026.
- Leasing: contracts where the car was delivered before 1 January 2027 keep the NOK 300,000 threshold.
- Status as of October 2026: a proposal, not yet law. The government says it intends to scrap the exemption entirely from 2028.
What happened: the EV VAT threshold is being halved
In its tax bill for 2027 (Prop. 1 LS), the Ministry of Finance proposes cutting the ceiling on the VAT exemption for electric cars from NOK 300,000 to NOK 150,000. The standard VAT rate of 25 per cent stays the same.
The draft wording of section 6-8 of the VAT Act covers passenger cars that run solely on electricity. Plug-in hybrids are therefore not included, and electric vehicles other than passenger cars are charged VAT in the normal way. The current section on Lovdata sets the threshold at NOK 300,000, which has applied since 1 January 2026.
The threshold applies to the consideration – the car’s price before VAT. Advertised prices include VAT and registration tax, so they are not directly comparable.
How much more will an electric car cost in 2027?
It is tempting to assume the increase is 25 per cent of everything above NOK 150,000. It is not. Cars above NOK 300,000 already pay VAT on the amount over NOK 300,000 in 2026. What is new is VAT on the band between NOK 150,000 and NOK 300,000 – and 25 per cent of NOK 150,000 is NOK 37,500.
Nettsak has run the numbers on pre-VAT prices, using the same method as the ministry’s table 9.1 and assuming the full tax is passed on to buyers:
- NOK 200,000: no VAT in 2026, NOK 12,500 in 2027 – an increase of NOK 12,500.
- NOK 300,000: no VAT in 2026, NOK 37,500 in 2027 – an increase of NOK 37,500.
- NOK 400,000: NOK 25,000 in 2026, NOK 62,500 in 2027 – an increase of NOK 37,500.
- NOK 500,000: NOK 50,000 in 2026, NOK 87,500 in 2027 – an increase of NOK 37,500.
- NOK 700,000: NOK 100,000 in 2026, NOK 137,500 in 2027 – an increase of NOK 37,500.
The figures for NOK 200,000, 300,000 and 500,000 appear in the ministry’s own table. In percentage terms, cars around NOK 300,000 are hit hardest: the ministry says the change raises prices by a maximum of just under 12 per cent. If the tax is not fully passed on, the increase could be smaller.
Registration tax edges up too
The same bill proposes raising the weight component of the one-off registration tax from NOK 12.71 to NOK 13.05 per kilo above 500 kilos. For a 2,000 kg electric car, that comes to roughly NOK 510, by Nettsak’s calculation.
The Norwegian Consumer Council has done the sums for specific models. Its head of section Thomas Iversen, quoted by tek.no on 21 October 2026, said the change means up to NOK 37,500 more VAT on a Tesla Model Y AWD, Norway’s best-selling car (see also our report on Tesla’s quarterly figures and FSD in Norway). Including the higher registration tax, the council estimates most popular models will cost around NOK 38,000 more without a VAT guarantee.
Does the car have to be registered before New Year?
Yes. The bill says the new threshold applies to electric cars “delivered to the customer after 31 December 2026”. The order date or contract date does not matter.
According to a ruling from the Norwegian Tax Administration (1 December 2022), a car counts as delivered on the day it is registered to the customer in the vehicle register.
- If the dealer registers the car in its own name after 31 December, the new threshold applies.
- For private imports, the date of customs clearance is what counts.
- The Consumer Council urges buyers to ask for a written VAT guarantee, so the dealer pays if delivery slips into 2027.
In the council’s survey of this year’s ten most popular models, only the BMW iX3 had a documented, nationwide VAT guarantee. As of publication, just over nine weeks remain until New Year.
What happens to my lease?
For leasing, the exemption applies in full if the leasing company’s cost price is NOK 150,000 or less. Above that, VAT is charged on the share of the rent that corresponds to the cost price above NOK 150,000.
A worked example from Nettsak (not a market price): a car with a cost price of NOK 450,000 and monthly rent of NOK 6,000 before VAT carries NOK 500 a month in VAT today. Under the new threshold that becomes NOK 1,000 – NOK 500 more a month.
Existing contracts are protected. Under the transitional rule, the NOK 300,000 threshold still applies to cars delivered to the lessee before 1 January 2027, even if the lease is transferred to someone else.
Why it matters for Norway
Figures from the Norwegian Public Roads Administration, cited in the bill, show that more than 95 per cent of new passenger cars were electric in 2025, rising to just over 97 per cent so far in 2026. The Norwegian EV Association, using OFV data, reports that EVs made up 98.8 per cent of new car sales in September 2026.
The ministry therefore argues that the exemption has in practice become a general subsidy for buying a car. Around 40 per cent of EVs are bought by the highest-earning fifth of the population. The cost of the tax break fell from just over NOK 20 billion in 2025 to NOK 12.8 billion in 2026.
According to the government’s revenue estimates, the lower threshold will bring in NOK 3.8 billion in 2027 and around NOK 4.5 billion a year once fully phased in.
The EV Association is wary. “It is important that tax increases on electric cars do not happen too fast,” says secretary general Christina Bu, warning that used-car buyers lose out if fewer people buy new EVs. The same budget also sets the Norgespris electricity price at 45 øre, which affects the cost of charging at home – along with the price of a home charging box.
What happens next – and will there be full VAT in 2028?
The proposal has not been passed. The Storting’s finance committee must submit its budget recommendation by 30 November, and parliament is due to settle the tax package before Christmas. It was the Storting itself that asked for the phase-out when it adopted the 2026 budget (resolution no. 57), but budget negotiations could still change the threshold or the date.
The exemption counts as state aid and must be approved by the EFTA Surveillance Authority (ESA). The current approval runs until the end of 2026, and according to the bill, ESA’s decision is expected this autumn.
For 2028, the government says it plans to abolish the exemption altogether. That step is not part of this bill and would have to be adopted in the 2028 budget. If it happens, an EV priced at NOK 500,000 before VAT would cost a further NOK 37,500 – with VAT rising from NOK 87,500 to NOK 125,000.
Frequently asked questions
Will electric cars in Norway pay VAT in 2027?
Yes, under the proposal. From 1 January 2027, buyers will pay 25 per cent VAT on the part of the pre-VAT price above NOK 150,000.
How much more will a NOK 500,000 EV cost?
NOK 37,500 more in VAT, according to the ministry’s table. VAT rises from NOK 50,000 to NOK 87,500, assuming the full tax is passed on.
Is it enough to order the car before New Year?
No. The car must be registered to you in the vehicle register by 31 December 2026. Ask for a written VAT guarantee if delivery is uncertain.
Will my current lease get more expensive?
No. Cars delivered to the lessee before 1 January 2027 keep the NOK 300,000 threshold, even if the lease is transferred.
Has the change been approved?
No – as of October 2026 it is a proposal. Parliament deals with the budget in November and December, and ESA must approve the scheme.
