Norway is one of the countries in the world with the highest concentration of electric vehicles, and it’s known to many as the “EV capital of the world”. One of main reasons for this is the tax reduction that EVs get compared to fuel-based cars, so what’s the deal with tax on electric vehicles in Norway?
Norway used to have zero tax and VAT on electric cars until 2023, but it’s now gradually changing the tax to be more and more the same as non-electric vehicles. The current (2023) taxes and fees are at 25 % VAT for the price above 500,000 NOK, as well as 12,5 NOK for kg the car weights over 500 kg.
This means that the taxes, VAT and fees you need to pay for an electric vehicle in Norway is still much lower than for a fuel based car of the same value, but it’s no longer completely tax, VAT and fee free.
But exactly how much is the current tax on EVs in Norway? The numbers don’t really make sense all by themselves since you need to know the weight and value of a car, so let’s explore further and take a look at actual numbers.
How much tax, VAT and fees for buying a new electric vehicle in Norway is 2023
Starting January 1, 2023, a few new taxes, VAT and fee systems are in place for buying and registering a new electric vehicle in Norway. They are as follows:
- 25 % VAT on the car cost above 500,000 NOK. This means that a new EV that costs 700,000 NOK will now cost 750,000 NOK after the added VAT (700,000 – 500,000 = 200,000 NOK. 25 % VAT of 200,000 NOK is 50,000 NOK).
- “Weight fee” (vektavgift) for 12,5 NOK per KG the car weights above 500 kg. This means that most electric vehicles will cost an additional 14,000 to 20,000 NOK in “weight fee”, since this is the weight range for most new EVs.
If you buy a car for less than 500,000 NOK, you won’t need to pay any VAT at all, but you still need to pay the weight fee.
To to summarize, the cheaper electric vehicles might get a fee of around 15 – 18 thousand Norwegian kroner, while the more expensive options will also have a flat 25 % VAT increase for the price above 500,000 NOK.
The actual cost of buying electric vehicles in Norway
Okay, so we’ve seen the percentages and flat numbers, but let’s take a look at actual car models to put the numbers into perspective.
| Car type | Price before any fees | Price after all fees and VAT | Sum of fees and VAT |
|---|---|---|---|
| Tesla Model Y | 522,390 NOK | 545,000 NOK | 22,610 NOK |
| Tesla Model 3 | 432,380 NOK | 448,290 NOK | 15,900 NOK |
| BMW iX | 701,080 NOK | 774,062 NOK | 72,982 NOK |
| Audi e-tron | 571,820 NOK | 612,988 NOK | 41,168 NOK |
| Polestar 2 | 365,000 NOK | 383,000 NOK | 18,000 NOK |
| Nissan Leaf | 309,000 NOK | 323,000 NOK | 14,000 NOK |
Keep in mind that all price costs are just examples, and can be different in real life. Extra equipment will make the car heavier, thus increasing the price. All prices are in NOK.
Electric vehicles are still exempt from many taxes and fees
Even though there’s a lot of added fees for electric vehicles now in 2023, it’s still far cheaper than buying and registering a brand new non-electric car in Norway.
If you were to buy a same priced car that would run on gas or diesel, expect to pay around 100,000 to 250,000 NOK extra, depending on the value of the car.
Non-electric vehicles need to pay a “one time fee” (engangsavgift) that often costs around 100,000 NOK, as well as a flat 25 % VAT on the full cost.
So a brand new non-electric car that costs 700,000 NOK before any taxes will end up costing an additional 100,000 NOK for the “one time fee”, 175 000 NOK in VAT and around 10 to 15 thousand NOK in the weight fee.
So in total, this 700,000 NOK car will easily cost just around 1,000,000 NOK. The same priced EV car would cost around 775,000 NOK!
The weight fee is slightly cheaper for non-electric cars since they tend to be lighter due to not having a battery, but the overall cost are obviously much lower for EVs.
Nicklas is the owner and editor of The Norway Guide, and is responsible for most of the content on the website.
He lives in Skien, Norway with his wife and two children. Nicklas is specialized in Norwegian ecology (including Norway’s geology, wildlife and flora) from his degree in Ecology And Nature Management at University of South-Eastern Norway, but has a particular interest in tourism and content creation.
His biggest hobbies are fishkeeping, going on hikes with his dog, and rooting for the local football team.
Thanks a lot. Keep up the good work.
What about hybrid vehicles?
Hi, M.
Good question! Hybrid cars used to have a decent tax exempt in Norway until 2023, but they are now pretty much on-par with regular fuel based cars.
Hybrid cars can get up to 10 % reduction in the one time fee when registering a new car, depending on how good the electric battery capacity is. However, they tend to be much heavier than regular fuel-based cars, which makes the weight fee so high that it easily offsets the reduction in the one time fee.
They also get no benefits such as cheaper toll booths or other benefits that EVs get.
So for the most parts, hybrid cars are not really an economical choice for most Norwegians.
Best regards
Nicklas
Hi Nicklas
interesting article. I assume fuel duty is charged on petrol and diesel in Norway? Is there an energy tax for electricity for powering an EV? Also, as fuel duty revenue declines with EV uptake, has Norway said how it plans to replace it? Road tolls, a pay-per-mile driven scheme? Here, the UK government is still kicking this particular ball around.
Thanks
John
Hi, John.
Yes, you are correct that there’s a tax on petrol and diesel in Norway. It was actually reduced at the beginning on 2023 to combat the increasing gas prices, but they are still very high.
There is currently no additional fees for using electricity to charge your car, other than the regular fees that apply for all electricity consumption. These taxes are far cheaper than the fossil fuel taxes.
The Norwegian government is currently doing their best to encourage citizens to change to electric vehicles, so they don’t have any immediate plans to replace the loss of money from this change. A certain proportion of the income from selling oil is marked for “green energy projects”, so I’m sure that sum can be used to offset some of the loss of revenue.
Best regards
Nicklas