Electric cars have been victorious in the Norwegian car market for many years. This year they set new records and have completely parked the petrol and diesel cars on the sales statistics.
Much of the explanation for this is that the electric cars come so favorably through our tax system, with zero tax and no VAT either. But it probably does not last very much longer.
– If you want to buy an electric car without taxes, 2022 is the last chance, says Thor Egil Braadland, authority contact in NAF.
Fight against the clock
Politicians have long wanted to introduce VAT on the most expensive electric cars. Braadland says that the electric car will be VAT-free throughout 2022, but that consumers must expect VAT on electric cars from 1 January 2023.
Tesla is among the brands that have really benefited from the scheme with zero taxes and also no VAT on electric cars in Norway. Photo: NAF.
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– The VAT will come, but it will not go from tax exemption, to 25 percent in one year. The government has promised and notified VAT on the part of the amount for an electric car that exceeds 600,000 kroner, so we have to reckon with that from 2023, he says.
Braadland says that VAT on electric cars is inevitable in the long run, but that there has been a battle against time as to when and how this will be introduced.
The electric car benefits cost Norway 19.2 billion annually – equivalent to the entire police budget
Can get VAT bang
– When VAT is first introduced for electric cars, it is okay to wait until next year, and take the most expensive cars first. 2022 had been too early, considering that the selection must go up and prices even more down before we can talk about the electric car being fully competitive, says Braadland, in a press release.
NAF has believed that as long as the authorities want to reduce emissions from the car fleet, it is better to keep the electric car VAT-free, than to increase fuel taxes massively.
– So far we have had a breakthrough for this, and we are happy with that, says Braadland.
However, he warns that a few car buyers risk getting a VAT slap on a car they order in 2022.
The electric car benefits cost Norway 19.2 billion – equivalent to the entire police budget
Right to cancel the purchase
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Audi e-tron has been a big seller in Norway for several years. Without all the electric car benefits, sales would hardly have been as high.
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– As is well known, there have been delivery problems on some models this autumn. If this continues well into 2022, there is a risk that an electric car ordered in 2022 will not be delivered until 2023. It is the VAT rules at the time you receive the car that apply – not when you order it, warns Braadland.
He advises people who order a new car in 2022 to use the car industry’s standard contract, which gives you the right to cancel the purchase if the total price increase is greater than six percent.
VAT on electric cars can give you cash support of 150,000 kroner
Taxes on electric cars in 2022
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- No purchase taxes on electric cars. All petrol and diesel cars, including rechargeable hybrids, have several 10,000 kroner in purchase taxes in addition to VAT.
- No VAT on electric cars. All other cars have 25 percent VAT.
- Traffic insurance fee (previous annual fee): NOK 8.15 per day / NOK 2,975 per year for electric cars. It is the same level as for a petrol car.
- Re-registration fee (new scheme from 2022, applies to used electric cars): NOK 1,670 for newer cars (2019 and newer), NOK 1,009 for older electric cars (2010-2018). This is a quarter of the level of a petrol car.
- Up to half fare in toll stations.
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This case was first published on Broom.no.
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