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Norway to remove VAT exemption for electric cars 

Electric cars over a certain value will be subject to VAT from next year, the Norwegian government announced in its revised national budget on Thursday. 

An electric car.
The Norwegian government have announced that VAT would be introduced for electric cars. Pictured is an EV being charged. Photo by Michael Fousert on Unsplash.

The current VAT, or MVA, exemption for electric cars will be replaced with a subsidy scheme, the Norwegian government announced when unveiling its revised national budget. 

Under the new subsidy scheme, consumers will be required to pay VAT on all-electric cars that cost more than 500,000 kroner. The VAT charges will be introduced from January 1st 2023. 

“All-electric cars receive support at the bottom (of the price range), but the more expensive electric car you buy, the more VAT you have to pay,” Minister of Finance Trygve Slagsvold Vedum said of the announcement. 

READ MORE: What the revised national budget in Norway means for foreigners

Cars purchased between now and the end of the year will be exempt from VAT, regardless of price. 

Under the new subsidy scheme, buying an electric car with a sticker price of more than 600,000 kroner would become 25,000 kroner. 

Electric cars over 1 million kroner will become 12.5 percent more expensive due to the VAT charges. 

Norway’s Electric Car Association has said criticised the introduction of VAT. 

“The entire electric car policy is at stake. It’s an incomprehensibly bad idea,” Christina Bu, general secretary of the association, told public broadcaster NRK.

Generous tax incentives have contributed to more than half of new cars sold in Norway being electric vehicles

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DRIVING

What happens if you are caught driving without a valid licence in Norway? 

Accidents happen, and sometimes people may take to the road without realising that their licence is expired or was meant to be exchanged for a Norwegian one.

What happens if you are caught driving without a valid licence in Norway? 

Norway’s driving licence rules can be complicated. Some motorists can use their foreign licence for as long as they like, others can only use their foreign licence for a limited period of time before having to exchange, and a small minority will need to go through the full process of getting a Norwegian one. 

Sometimes the rules can be difficult to understand, which can lead to people unknowingly taking to the roads with a licence that isn’t valid to drive with on Norway roads with. 

So, what is the punishment if you do get caught? 

Olav Markussen, police inspector at the Norwegian National Road Policing Service, informed The Local that the fine for driving without a legal licence was 8,500 kroner. 

If you are caught more than once, then the fine will increase. 

The police inspector added the punishment was the same if the licence was one that needed to be exchanged within three months and hadn’t been, or if it was valid and expired, or was not fit for use on Norwegian roads.  

READ ALSO: How much does it cost to get a driver’s licence in Norway? 

What are the rules for foreign licences in Norway? 

If you have a valid driving licence from an EU or European Economic Area/EEA (EU countries plus Iceland, Liechtenstein, and Norway) country, you can use it in Norway for as long as you like. 

However, you can still choose to exchange it for a Norwegian one, although there is no obligation

Driving licences issued in the UK are treated as ones from within the EU, even if it was issued after the UK left the EU. 

You can typically use licences from non-EEA countries for up to three months before exchanging them for a Norwegian one. 

To tell whether somebody is driving on a licence that was meant to have been exchanged but wasn’t, “the authorities will need to do more investigation, check travel documents,” according to inspector Markussen from the traffic and roads police. 

Depending on where you come from, you may need an international driving licence to get on the road in Norway. 

This applies if it was issued in countries not a part of the Geneva and Vienna driving conventions, doesn’t have a photo, or is written in an alphabet other than the Latin one. For example, if the licence is printed in Arabic or Japanese, you need an international licence. 

Additionally, people with certain licenses will need to obtain a Norwegian licence under the same rules as first-time applicants. 

READ MORE: What are the rules for using a foreign driving licence in Norway?

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