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Norway

15-05-2018 updated
Capital: Oslo
Population: 5,194,000
Total land area (km2): 323,802 km2
Passenger cars: 2,500,000
Highway (km): 500 km
Category Description
Registration Tax Benefits

Norway - Registration Tax Benefits

Norway has a long history in offering electric car incentives, dating back to 1990 (Haugneland et al., 2017). A clear, stable policy framework and political commitment has been crucial to create a long-term reliable EV market conditions. Particularly strong incentives apply to the purchase of zero-emission vehicles (ZEVs). BEVs have been exempted from registration tax (and import tax which is the same in Norway) since 1990. The exemption from VAT and registration taxes is only granted to BEVs. This is a key determinant for the lower purchase price of BEV models versus PHEVs. Yet, PHEVs are fairly popular in households with one car or taking frequent trips exceeding 100 km. In January 2017, the incentives for PHEVs were increased. In particular, the deduction on the total weight to be used for the determination of the taxation rate increased from 15% in 2015 to 26% in 2017. For large PHEVs this change leads to registration tax cuts of NOK 16 000-80 000 (EUR 1 700-8.400) compared with similar ICE cars.

Ownership Tax Benefits

Norway - Ownership, Tax Benefits

Norway bases circulation taxes on the type of fuel. BEVs and PHEVs are granted a reduction and pay the minimum amount, NOK 455 (EUR 48).

Company Tax Benefits

Norway - Company tax benefits

Tax reduction

VAT Benefits

Norway - VAT Benefits

BEVs have been exempted from VAT on purchase since 2001 (new and second hand vehicles). In 2015, the VAT exemption was extended to include leasing.

Other Financial Benefits

Norway - Other Financial Benefits

Norway introduced a special E-Number plate for Electric Vehicles which gives authorities the possibility to choose local incentives such as free parking, using bus lanes based on these Number plates. It also helps increasing awareness of clean vehicles on the roads. Since 2016, Norwegian municipalities have the authority to determine fees and exemption categories. This led to different local regulatory frameworks: electric cars pay the same parking fee as ICEs in Trondheim; half the price of ICEs in the city centre of Bergen; and they are subject to strongly differentiated parking fees in Oslo, where 1 300 of the 6 500 parking places in municipal parking lots are dedicated to electric car charging and equipped with slow chargers (3.6 kW). These parking spots plus charging are free until 2019. In Norway, electric cars are granted free access to bus lanes, but several bus corridors are experiencing regular congestion during rush hour. The municipality of Oslo tackled this issue in 2017 by granting access to the bus lane on two specific corridors during rush hours only to electric cars with two or more persons on board. In Norway, electric cars are exempt from paying for the use of regional toll roads. This measure added up to NOK 7 500 (EUR 790) in 2016 (Figenbaum and Kolbenstvedt 2016). From 2019,
electric cars will have to pay the tolls, but at a lower fee. Since 2009, electric cars have been granted free access on most ferries that connect parts of the national road network. On ferry crossings that are not part of the national road network, local governments decide the fees.

Local Incentives

Norway - Local Incentives

- Urban toll exemption - Highway toll exemption - Free Parking - Bus lane use - Funding in some cities for normal charging stations in shared appartment buildings, shopping centers, parking garages etc.
Infrastructure Incentives

Norway - Infrastructure

Public funding for fast charging stations every 50 km on main roads. Regulation on the requirements for EVSE in new buildings and parking lots (Norwegian Ministry of Transport, 2016). For parking lots and parking areas of new buildings, a minimum amount of 6% has to be allocated to electric cars. Oslo: expanded budget for EVSE deployment. The 2018 budget allocated to housing associations for installing chargers doubles the 2017 budget to NOK 20 million (EUR 2.1 million).

Category Description
Registration Tax Benefits

Norway - Registration Tax Benefits

Norway has a long history in offering electric car incentives, dating back to 1990 (Haugneland et al., 2017). A clear, stable policy framework and political commitment has been crucial to create a long-term reliable EV market conditions. Particularly strong incentives apply to the purchase of zero-emission vehicles (ZEVs). BEVs have been exempted from registration tax (and import tax which is the same in Norway) since 1990. The exemption from VAT and registration taxes is only granted to BEVs. This is a key determinant for the lower purchase price of BEV models versus PHEVs. Yet, PHEVs are fairly popular in households with one car or taking frequent trips exceeding 100 km. In January 2017, the incentives for PHEVs were increased. In particular, the deduction on the total weight to be used for the determination of the taxation rate increased from 15% in 2015 to 26% in 2017. For large PHEVs this change leads to registration tax cuts of NOK 16 000-80 000 (EUR 1 700-8.400) compared with similar ICE cars.

Ownership Tax Benefits

Norway - Ownership, Tax Benefits

Norway bases circulation taxes on the type of fuel. BEVs and PHEVs are granted a reduction and pay the minimum amount, NOK 455 (EUR 48).

Company Tax Benefits

Norway - Company tax benefits

Tax reduction

VAT Benefits

Norway - VAT Benefits

BEVs have been exempted from VAT on purchase since 2001 (new and second hand vehicles). In 2015, the VAT exemption was extended to include leasing.

Other Financial Benefits

Norway - Other Financial Benefits

Norway introduced a special E-Number plate for Electric Vehicles which gives authorities the possibility to choose local incentives such as free parking, using bus lanes based on these Number plates. It also helps increasing awareness of clean vehicles on the roads. Since 2016, Norwegian municipalities have the authority to determine fees and exemption categories. This led to different local regulatory frameworks: electric cars pay the same parking fee as ICEs in Trondheim; half the price of ICEs in the city centre of Bergen; and they are subject to strongly differentiated parking fees in Oslo, where 1 300 of the 6 500 parking places in municipal parking lots are dedicated to electric car charging and equipped with slow chargers (3.6 kW). These parking spots plus charging are free until 2019. In Norway, electric cars are granted free access to bus lanes, but several bus corridors are experiencing regular congestion during rush hour. The municipality of Oslo tackled this issue in 2017 by granting access to the bus lane on two specific corridors during rush hours only to electric cars with two or more persons on board. In Norway, electric cars are exempt from paying for the use of regional toll roads. This measure added up to NOK 7 500 (EUR 790) in 2016 (Figenbaum and Kolbenstvedt 2016). From 2019,
electric cars will have to pay the tolls, but at a lower fee. Since 2009, electric cars have been granted free access on most ferries that connect parts of the national road network. On ferry crossings that are not part of the national road network, local governments decide the fees.

Local Incentives

Norway - Local Incentives

- Urban toll exemption - Highway toll exemption - Free Parking - Bus lane use - Funding in some cities for normal charging stations in shared appartment buildings, shopping centers, parking garages etc.
Infrastructure Incentives

Norway - Infrastructure

Public funding for fast charging stations every 50 km on main roads. Regulation on the requirements for EVSE in new buildings and parking lots (Norwegian Ministry of Transport, 2016). For parking lots and parking areas of new buildings, a minimum amount of 6% has to be allocated to electric cars. Oslo: expanded budget for EVSE deployment. The 2018 budget allocated to housing associations for installing chargers doubles the 2017 budget to NOK 20 million (EUR 2.1 million).