Norway Could End VAT Exemption For EVs In 2016

3 years ago by Mark Kane 60

Nissan LEAF In Bus Lane In Norway

Nissan LEAF In Bus Lane In Norway

Number of registrations of new all-electric passenger cars in Norway - July 2014

Number of registrations of new all-electric passenger cars in Norway – July 2014

In Norway, all-electric cars are exempt from VAT, which is one huge incentive (among others) to buy one.

The regulations provides such exemption until 2017 or 50,000 cars, whichever comes first.

Because some 60% of this pool is already exhausted and new sales regularly exceed 1,000 passenger cars, we expect that the 50,000 mark will fall early 2015. Moreover, we expect that sales will accelerate after crossing 40,000 because everyone interested in EVs will be willing to buy them quickly to avoid the tax.

There is no decision on what will happen after 50,000 mark however according to Norwegian media, government is considering introducing VAT on electric cars from 2016 on.

If this happens, VAT for EVs will probably grow step by step like 8% in 2016, then 12% in 2017 and 16% in 2018.

To maintain high market share, manufacturers will be forced to match this rise from VAT with lowered prices.

Source: e24.no

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60 responses to "Norway Could End VAT Exemption For EVs In 2016"

  1. kdawgørvår says:

    There seems to be a lot of “low cost” EVs here. Maybe adding the VAT will mean going for one of these vs. an i3. Or an i3 vs. a Tesla.

  2. Ambulator says:

    I’m not sure I understand. The VAT exemption goes away in early 2015, but it might come back in a reduced form in 2016?

    1. Mikael says:

      No, the “early 2015” in the article is an error. It should be “early 2016”

      30 000-ish sold today (60% of 50 000) and 1300 EV’s per month for the rest of 2014 + all of 2015 makes is 16 months * 1300 = 20800 added EV’s.

      20800 + 30 000 makes over 50 000 in January 2016.

      But since they have been averaging 1540 EV’s per month so far this year it’s pretty safe to assume that they will hit 50 000 during the next summer.

  3. Rob Stark says:

    The standard VAT rate in Norway is 25%.

    And there are punitive gas guzzler taxes on top of that.

    For example a supercharged 580 hp Camaro ZL1 that cost $56k in the USA cost the equivalent of $345k in Norway with all assorted taxes included.

    Under the new tax regime a car like the Chevy Spark EV with 327 lbs of torque would still look outstanding relative to ICE cars in its price range.

    Not to mention the Model S and the relative value to similar ICE cars.

    1. DaveMart says:

      I would argue that it is fairer to reduce the advantage Tesla buyers get at the top end of the market, and use the funds to give a fairer deal to PHEVs, which are effectively priced out with the Norwegian incentive system.

      Certainly in terms of petrol or CO2 emissions saved, it would be trivial to show that that is more cost effective.

      1. vadik_veselovsky says:

        PHEV is a pathetic shameful fake of a BEV, get the real deal, go for 100% electric, Norway!

        1. DaveMart says:

          Amen, brother!

          Are you a creationist too, or just allergic to numbers?

          1. vadik_veselovsky says:

            Do you know that zero is also a number? With Norway’s hydroelectricity BEVs produce exactly zero emissions.

            PHEVs are a pit in the face of Earth dying at man’s hands.

            1. DaveMart says:

              So the End of Days is upon us.

              Not quite Creationist, but it will do.

              1. vadik_veselovsky says:

                Wake up youngster, there is more to the world than US-only verbiage nobody can relate to except you slaves of cheapo consumerism.

                1. DaveMart says:

                  If you are older than my 63, why are you interested?

                  What has posterity ever done for you?

                  I am glad however that my arguments sound youthful.

                  Unfortunately unkind people, me for instanced, might feel that your arguments sound positively senile!

                  Woodstock is SO over, Dude!

                  1. vadik_veselovsky says:

                    Peoples aiming at sustainable 100% renewable system like hydro->BEV tend to only be criticized by fossil lobby, Hitler, Putin, and white trash.

                    What can be possibly wrong with a 100% renewable sustainable economy Norway is aiming for?

                    1. DaveMart says:

                      Anyone who differs from you is evidently Hitler, so all hail to you, Great Leader!

                    2. Cavaron says:

                      @Vadik and Dave: Thanks for proving Godwin’s Law here all over again.

                      PS: I like BEVs, but they don’t work for everyone right know. Give em 3-5 more years and they will do.

              2. jmac says:

                Mikael said:

                “I’m guessing it’s a 97% chance that they don’t change the law.”

                I think so too, since Norway’s CO2 emissions goals are mostly tied to automobiles, since the grid is at least 95 per cent Hydro.

                1. Mikael says:

                  One thing that people forget or don’t know about is that Norway has fairly high co2 emissions per capita.
                  The whole EV project in Norway is because Norway needs to reduce their carbon emissions to get in line with EU regulations. Norway has one enormous source of co2 and one big source of co2. The enormous source is the oil drilling and all the electricity and energy it takes to get it up and make something of it.
                  The big source is the transport sector.

                  They looked into transfering clean electricity from the mainland, but the cost would be enormous compared to the reduction in co2. So they decided to go big on the transport sector instead.

                  Norway has almost twice as much emissions of co2 per capita as it’s closest neighbour Sweden.

                  So Norway needs reductions and actual reductions and not just on paper (which PHEV’s sometimes are, especially if they are forced upon people). The BEV’s guarantee them emission reductions.

                  1. sven says:

                    So Norway is subsidizing EVs to reduce it’s CO2 emissions, so that it can continue to drill for and export the crude oil that finances its socialist nirvana. How green of Norway! It’s reducing its CO2 emissions from motor vehicles so that it can take as much buried carbon out of the ground, in the form of crude oil, to sell to other countries so that they can burn it in their ICE vehicles and expel that once buried carbon into the atmosphere as CO2. Oy veh!

                    Norway is like a giant gas station that promotes itself as green because it runs on renewable energy, while it sells as much gas & diesel (crude oil) as it possibly can to other countries.

                    Without crude oil exports Norway’s economy and socialist government would both collapse.

                    1. Mikael says:

                      Now you’re mixing things. A socialist government works fine with or without the oil. The earnings are being put into one big fund which Norway will be able to use on a rainy day sometime in the future.

                      You know socialism would work anywhere, it’s basically just about redistributing the wealth making the rich a little bit less rich and the poor a little bit less poor and puting resources towards what you actually need instead of what you want and are willing to pay for.

                    2. sven says:

                      “A socialist government works fine with or without the oil.”

                      Name one. How would Venezuela’s government work without oil?

                      There is no way Norway could afford their EV subsidies without the Petro Dollars they receive from crude oil exports.

                      If Norway were truly green, they would drill and pump only enough oil to cover their domestic needs. But then they would have no money to pay for their overly generous EV incentives, and their economy would crash. Let’s face it, Norway is the Saudi Arabia of the arctic circle and their EV incentives are a form of green-washing for their public image. If you truly believe that the world is addicted to oil, then Norway is a major crack dealer and no amount of EV incentive green-washing will change that.

              3. jmac says:

                In Norway, virtually all the electrical generation is Hydro.

                Obviously, zero emission electrical generation combined with zero emission battery electric vehicles and you have a Norway that is basically CO2 free.

            2. Alaa says:

              Did you know that the Arabs are the ones who invented the ZERO?

              1. DaveMart says:

                No chance anyone around here would know that! 😉

                1. DaveMart says:

                  As in’ zero chance’ for anyone who missed it?

              2. Mikael says:

                I would do some fact checking on that… 😉 But it’s true that the europeans got the zero from the arabs at least.

                And as we all know nothing counts until the knowledge gets to Europe. 🙂 Just like america didn’t exist before europeans “discovered” it. 😛

              3. jmac says:

                Here are a couple posters that do not know that the mathematical concept of zero originated in India, not Europe or Arabia.
                ———————————————

                Alaa said”

                “Did you know that the Arabs are the ones who invented the ZERO?”

                Reply from Dave Mart:

                DaveMart
                September 6, 2014 at 4:37 pm

                No chance anyone around here would know that!

                —————————————-

                No one would know that Dave Mart, because, it’s not true !!

              4. drpawansharma says:

                No. Indians invented zero. Arabs just passed it on to europe.

                1. kdawgørvår says:

                  I thought the concept of “nothing” went back to Greek philosophers?

      2. See Through says:

        Norwegian incentive and VAT policy is a glowing example of govt. policies at worst. PHEVs, which make most sense, are penalized most.

        Hope these bozos in Norway govt come to their senses soon.

        1. Mint says:

          Another example of you at your worst, making up BS.

        2. Surya says:

          I’ll decide for myself what kind of car makes most sense for me. Guess what, it’s not a PHEV!

      3. Mint says:

        PHEVs do get a hefty discount in Norway:
        http://www.gronnbil.no/nyheter/billigere-plug-in-hybrider-fra-1-juli-article338-239.html

        They get CO2 discounts, and their weight tax is less than those of non-plugins. An Ampera has an overall tax of 22%, while a similar gasoline car would see 50-100% in taxes. Pretty fair given an estimated 70% plugin mileage.

        Another example: On Porsche’s Norway site, I see the Panamera S e-Hybrid’s price is 1.3M NOK, the Panamera S is 1.5M NOK, and the Model S P85 is 600k NOK (all three have roughly the same price in the US). Given how little EV range the e-Hybrid has, and how little it reduces gas consumption, that’s a fair discount from the Panamera S.

        Once the VAT comes back as described in the article, some PHEVs may get an unfair advantage (same discount as pure EVs despite still using gas).

        1. drpawansharma says:

          Sorry i meant to respond to davemart

      4. drpawansharma says:

        वही Why would it be fairer. Its not like tesla is the largest automobile company in the world with billions on its balance sheet. Why would it be fairer to reduce vat on a fledgeling company making an awesome product and transfer it to half assed evs by so called dominant manufacturers? What kind of perverse communism do you believe in?

      5. drpawansharma says:

        Why would it be fairer. Its not like tesla is the largest automobile company in the world with billions on its balance sheet. Why would it be fairer to reduce vat on a fledgeling company making an awesome product and transfer it to half assed evs by so called dominant manufacturers? What kind of perverse communism do you believe in?

  4. jmac says:

    In Norway, Zero Emissions really do mean Zero Emissions since the Norwegian grid is basically 99 per cent Hydro.

    It does not make sense for Norway to support anything other than pure BEV.

    PHEVs add nothing, and in fact, they actually detract from Norwegian carbon free goals and that’s why they are NOT supported by government tax breaks.

    1. DaveMart says:

      Yep.

      It is not as though Norway was tied in with the European grid or anything, and so could export spare power and so reduce total emissions.

      Minnesota with a similar population should similarly institute policies without reference to the rest of the US.

      1. vadik_veselovsky says:

        Hoh, just to get to the facts, Norway’s grid IS connected to the continent and plays the battery part for renewables of likes of Denmark’s winds.

        The rich Norwegians ARE contributing to the fates of the world, chapeau and weiter so.

        1. Mikael says:

          Even though irony can be hard to get when it’s in writing in the case of Dave’s comment it should have been pretty obvious. 😉

  5. jmac says:

    More FUD from “What’s his name …”

    What does Norway sending excess hydro to Sweden, Denmark, Germany have to do with it ?

    “It is not as though Norway was tied in with the European grid or anything, and so could export spare power and so reduce total emissions.”

    Norway does not need to reduce total carbon from electrical production. S

    So, anything the EU gets from Norway in the form hydro-power is just a blessing, pure and simple. If Eu States want to buy Norwegian hydro-power to meet carbon goals, so what?

    More FUD from the FUD Masters….

    1. DaveMart says:

      You save more petrol by running two or three PHEVs compared to one BEV.

      So if the emissions were calculated on a european basis, then one region of it, such as Norway, paying enough to put a Tesla on the road in forgone taxation reduces emissions less than their giving more deductions for PHEVs.

      Clear?

      1. jmac says:

        A not so famous poster said:

        “You save more petrol by running two or three PHEVs compared to one BEV.”

        Are you utterly daft ?

        You save more petrol by running two or three BEV instead of one PHEV, not the other way round.

        Bev require no gas/diesel.

        The FUD is getting deep !!!

      2. vadik_veselovsky says:

        There is no reason to WASTE money on an INTERIM gas burning solution if you have the opportunity to build the right kind of SYSTEM, ie BEV based transportation, right NOW.

        Norway is a rich and wise country and has this opportunity NOW.

        Clear?

      3. GSP says:

        Are you assuming that battery production is finite and limited, so that you can make 1.5 Ampera/Volts (16 kWh) instead of one Leaf (24 kWh)?

        I would not assume that.

        However, comparing one Ampera/Volt to one Leaf + ICE backup car, GM on star data shows more EV miles are driven by the average Volt than by the average Leaf. So PHEVs can help Norway, or any other country, reduce petroleum consumption.

        GSP

    2. See Through says:

      Before BEVs:
      EU got hydro power from Norway, so EU burnt less gas/cola/nuke to make electricity.

      Now with tons of EVs in Norway:
      Norway consumes all the hydro electricity it produces. Doesn’t export anything to EU. So, EU burns more gas/nuke to make its electricity.

      When will these shithead Tesla hypesters get a brain in their skulls?

      1. vadik_veselovsky says:

        With the money from electricity sold to EV owners Norway can build more hydro plants, they are not resticted on hydro availability.

        Norway’s key role in European grid is not selling electricity in bulk, but rather providing (virtual) hydro storage to cover peaks from EU’s renewables’ volatility.

        So the more money Norway’s hydro gets, the greener is Europe’s grid.

        1. Mikael says:

          *lol*… sometimes I wonder how long time you spend on coming up with new ways to troll.

          Norway produces about 140 TWh of hydro per year. If all cars in norway were 100% electric they would use around 7 TWh per year.

          Norway are building new wind power at a much higher pace than the EV’s use so they actually have more renewable electricity to export than before.

          1. GSP says:

            +1

            Most people don’t realize how little energy is needed for transportation compared to other uses of electricity.

            “See Through” probably know this, but continues his/her futile FUD campaign.

            GSP

      2. Mint says:

        A gas or nuclear kWh powering an EV 3-4 miles emits far less CO2 than gasoline would, and more importantly, almost no particulate, ozone, or NOx emissions in cities.

        Exporting electricity isn’t free either.

      3. Spec9 says:

        Stop making things up. Norway continues to export electricity. Jeez, you are quite an annoying troll.

        1. Spec9 says:

          “Statistics Norway estimates that in 2013, Norway exported a total of 15.1 BkWh of electricity.”

    3. Mikael says:

      To get some facts straight. Norway doesn’t export hydro to Sweden. Sweden also has a lot of hydro and is an exporting country of electricity.
      For example the largest part of Denmarks exectricity imports come from Sweden.

  6. Mikael says:

    Don’t forget that the exemption from VAT for BEV’s in Norway is written into a law.
    So the government has to actively change that law for the VAT exemption to go away.

    So if the government doesn’t do anything (which most governments are pretty good at) then the VAT exemption will still be there, forever (or until a government decides to change that law).

    Taking away that exemption would be an unpopular thing to do. And to be actively anti-green will be remembered for a long time in Norway.

    I’m guessing it’s a 97% chance that they don’t change the law.

    1. See Through says:

      The “law” in this case, is only for first 50K cars. So, if they don’t do anything, it expires after that.

      1. Mikael says:

        Not at all. It’s not a “law”, it’s a law. And if they do nothing it won’t expire.

        Anyway… EV’s will still be free from VAT after 50k cars too, which is what really matters.

  7. jmac says:

    adik_veselovsky
    September 6, 2014 at 5:20 pm Said:

    “There is no reason to WASTE money on an INTERIM gas burning solution if you have the opportunity to build the right kind of SYSTEM, ie BEV based transportation, right NOW.”

    Veselovsky also says:

    “With the money from electricity sold to EV owners Norway can build more hydro plants, they are not resticted on hydro availability.

    Norway’s key role in European grid is not selling electricity in bulk, but rather providing (virtual) hydro storage to cover peaks from EU’s renewables’ volatility.

    So the more money Norway’s hydro gets, the greener is Europe’s grid.”

    __________________________________________

    No one knowa exactly what goes on in Norwegian politics, but I think Adick is essentially correct.

    1. sven says:

      I see what you did there.

  8. jmac says:

    VAT (value added taxes) in Norway are bone crushing and I suppose that driving a gas powered automobile while in Norway is one of the most expensive propositions in the world.

    When Socialist Norway actually takes its foot off absurd gas vehicle registration taxes, you end up with the phenomenon of electric cars.

    That’s because Norway has decided to “punish”
    gas and diesel powered vehicles.

    The idea, of course, is to end CO2 emissions and conform to the Kyoto protocals.

    1. Mikael says:

      You make it sound like trying to make the world a better place would be something bad.

      If all the world would care about the people around us it would be a much better place, for everyone.

  9. jmac says:

    The Arabs did NOT invent the Zero. it was borrowed from the East Indians. That’s where we get our so-called Arabic Numerals,

    Check this out:

    Most scholars agree that the Zero was independently invented by the Mayans, Babylonians and East Indians.

    NOT, by the Arabs…..

  10. Spec9 says:

    Extend it, Norway. Keep driving on that hydropower and sell the oil to the suckers. And install more wind & solar to supplement the hydropower.