Norway to raise electric car taxes, ending most VAT exemptions from 2027
The Norwegian government will cut the VAT exemption for electric vehicles, causing a noticeable price increase for most new models starting next year.
Norway's upcoming budget will limit the value-added tax break for electric vehicles, applying it only to a fraction of the sale price beginning next year. As a result, most new electric cars will cost noticeably more, with the full exemption scheduled to disappear by 2028, leading to an additional price jump at that time. Only a handful of inexpensive models, such as the Dongfeng Box, will experience a modest increase.
The country's best-selling vehicles are typically mid-range family cars priced well above the low-cost segment. Toyota's commercial director Henrik Hauge Larsen said dealers expect strong demand and are ready to deliver many popular models before the year-end deadline.
Why it matters
Higher taxes will raise electric car prices, potentially slowing Norway's shift to zero-emission transport.
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