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ESA greenlights prolongation of Norwegian tax incentives for electric cars – Clayton & Segura

11 December 2024
Press Releases

ESA greenlights prolongation of Norwegian tax incentives for electric cars

Today, the EFTA Surveillance Authority (ESA) has approved the extension of Norway’s tax incentives for battery electric passenger vehicles for an additional period of two years, from 1 January 2025 to 31 December 2026. The objective of the measure is to promote the adoption of environmentally friendly vehicles over fossil fuel-based alternatives and reduce carbon emissions in the transport sector. Despite growth in electric vehicle (EV) market share, fossil fuel cars still dominate the total number of passenger cars in Norway.

The scheme includes two instruments: a zero VAT rate on the supply and import of EVs up to NOK 500,000 (around EUR 43,000) and a similar zero VAT rate for leasing such vehicles, subject to the same threshold. Originally approved in 2015, the scheme has been updated and extended multiple times, with the current version set to expire at the end of 2024.

For further information, see ESA’s decision.

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