Tax incentives for electric passenger vehicles in Norway greenlighted 

The EFTA Surveillance Authority (ESA) has approved a prolongation and an amendment of an existing scheme approved in 2015. The scheme supports the purchase, import and leasing of battery electric passenger vehicles (BEPV) by applying a zero VAT rate to part of the vehicle’s value. The Norwegian authorities have lowered the purchase value threshold that can receive support in the form of a zero VAT tax from NOK 500.000 to NOK 150,000. The scheme will run until 31st of December 2027.  

ESA assessed compatibility of the scheme on the basis of Article 61.3 c) of the EEA Agreement. ESA valued positively the lowering of the purchase value threshold as it reduces the aid intensity and ensures that the aid remains limited to the minimum necessary to maintain incentives to purchase BEPV’s.  

For more information see ESA’s press release and ESA’s decision.