In 2023, however, it introduced a 25% value-added tax on the portion of an EV's price over 500,000 crowns ($49,508), affecting mostly high-end models such as the BMW iX
(BMWG.DE), opens new tab, Tesla X and Porsche Taycan
(P911_p.DE), opens new tab, while shielding mass-market cars.
For Tesla's mid-range EVs, only the most expensive so-called "performance" four-wheel drive version of the Model Y is currently subject to VAT, the company's website shows.
But in 2026, Norway plans to lower its EV tax exemption to 300,000 crowns, the government said in its proposal for next year's budget, and begin collecting VAT on all versions of the Model Y and similarly priced mid-market cars like Volkswagen's ID.4.
In 2027, the final VAT exemptions will be removed altogether, it said, subjecting all EVs to the full tax, if parliament approves the plan.