Now it’s seriously approaching VAT.
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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, government 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.
– 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.
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.
When VAT on electric cars comes, it is likely that the authorities will introduce a form of “cash support” for those who buy electric cars. It is expected that this will be differentiated on price, so that you do not receive support for purchase sums over NOK 600,000, for example.
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.
Right to cancel the purchase
– 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.
Taxes on electric cars in 2022
- No purchase taxes on electric cars.
- 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 booths.
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