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State Aid

State Aid: ESA greenlights support scheme for zero-emission vehicles in Norway




The EFTA Surveillance Authority (ESA) has today approved a new, limited period of state aid for zero-emission vehicles in Norway through several tax exemptions.

ElbilerESA has approved three years of zero VAT rating for electric cars. Other aid measures notified for zero-emission vehicles by Norway, have been approved for six years.

”The EEA Agreement enables Norway to subsidize electric cars to benefit the environment. However, Norway needs to ensure maximum output”, says ESA President Sven Erik Svedman.

ESA has previously approved Norway´s existing aid scheme until 31 December 2017. The new program will be valid after the turn of the year.

The zero VAT rating alone amounts to NOK 3.2 billion (approx. EUR 325 million) a year. Simultaneously, the market for electric cars is experiencing rapid technological advances, creating both better and cheaper cars. To avoid an overcompensation that benefits neither the market nor the consumers, ESA asks Norway to evaluate the zero VAT rating after two years.

ESA has today approved other state aid measures for electric cars, including an exemption from annual vehicle tax and registration tax, for six years. Further, zero VAT rating and other tax exemptions have been approved for six years for hydrogen cars.

On this basis, ESA concludes that the Norwegian aid measures are compatible with the EEA state aid rules.

For further information, please contact:

Ms. Anne Vestbakke
Head of Communications
tel. +32 2 286 18 66
mob. +32 490 57 63 53

Other EEA Institutions

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