Norway EV Surge Before VAT Hike | 2026 Tax Changes

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Norway Races Against the Clock as New EV Tax Rules Loom

A surge in electric vehicle imports is underway in Norway as consumers and car companies rush to beat new value-added tax (VAT) regulations set to take effect on January 1, 2026.The impending changes are creating a frenzied push to get vehicles into the country before the new year, with the automotive industry bracing for a critically important shift in pricing and sales dynamics.

Record imports Flood Norwegian ports

The demand for electric vehicles has reached fever pitch, leading to unprecedented activity at Norwegian ports. At Drammen, the country’s largest port for car imports, officials have reported receiving over 30,000 vehicles in the last two months – a new record. “We have been on call around the clock,” stated tom Egil Johannesen, unloading and import manager at Motorships AS. Two large ships carrying nearly 2,000 cars arrived this week alone, with crews working to offload the vehicles before the New Year’s holiday.

The urgency stems from the government’s announcement earlier this fall that electric cars will be subject to increased VAT, potentially adding up to NOK 50,000 (approximately $4,600 USD) to the price tag starting in 2026. To avoid these increased costs, buyers are accelerating their purchases and importers are working tirelessly to deliver.

Did you know? – Norway offered considerable incentives for EV adoption, including tax breaks and exemptions from road tolls, contributing to its high EV market share.

Industry Braces for Impact

The impact of the new regulations is being felt across the entire automotive sector. Dealers are foregoing holiday breaks to process orders, and importers are prioritizing deliveries. “It’s all men at the pumps,” remarked a Volvo dealer in Førde, who cancelled his christmas holiday to manage the influx of vehicles. “There is a real push in extraditions throughout Norway. Both locally and nationally it is heading towards a record.”

The increased demand is reflected in registration numbers. According to the Road Traffic Information Council, November saw a 70 percent increase in car registrations compared to November 2024.Preliminary figures indicate that over 26,000 cars were registered in December – nearly double the total for December of the previous year.

Reader question – Why is Norway phasing out EV incentives? The government aims to align taxation with other vehicle types as EV market share grows.

Looking ahead to 2026 and Beyond

Industry leaders anticipate continued strong sales into 2026, despite the anticipated price increases. Ulf Tore Hekneby, head of Harald A. Møller, Norway’s largest car importer, noted that his company is experiencing a especially demanding Christmas season. “this year there is very little Christmas holiday for us who work in our system. Now we are working to get the cars out to our customers,” he said.

Harald A. Møller projects that 170,000 passenger cars will be sold in the coming year, approaching a record high. The evolving VAT structure – increasing incrementally through 2028, when no VAT exemption will remain – suggests the industry will remain busy for years to come.

Here’s a breakdown of the planned VAT increases:

• 2025: VAT applied to the portion of the price exceeding DKK 500,000
• 2026: VAT applied to the portion of the price exceeding DKK 300,000
• 2027: VAT applied to the portion of the price exceeding DKK 150,000
• 2028: No VAT exemption

Despite the current frenzy, some anticipate a slight slowdown in the new year following this intense VAT-driven rush. Though, as one dealer in Førde concluded, it has been “a fierce but rewarding autumn.”

Published December 3