ESA approves VAT exemption on electric cars in Norway for two additional years

TeslaPhoto: Charlie Deets / Unsplash
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On Wednesday, the EFTA Surveillance Authority (ESA) approved the VAT exemption on electric zero-emission cars for another two years. ESA believes it is in line with the EEA goal of environmental protection.

The EEA agreement allows state aid to be used to promote environmental protection measures that can help increase the proportion of zero-emission cars. 

ESA believes that the measure is in line with Norwegian and EEA goals of reducing greenhouse gas emissions, the Authority noted.

ESA approved the VAT exemption for the first time in 2015.

Taxation changes

On December 14, the Norwegian government announced that the annual fee for petrol and diesel cars will not be increased in the budget for 2021.

At the same time, an annual fee will be introduced for electric cars.

The government has decided that those who own an electric car must pay NOK 2,000 in annual fees from next year.

© NTB Scanpix / #Norway Today

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