On October 15, 2025, the Støre government presented its proposal for the 2026 Norwegian National Budget with significant changes that may affect your business. In this article, we review the most important proposed changes in VAT, special duties, and customs duties, and explain what this means for Norwegian and foreign companies.
Value Added Tax
The government proposes changes in the VAT area for 2026 that could have major consequences for both Norwegian and foreign companies. These changes require adaptation of internal routines and systems - and planning should start now.
The key changes proposed are:
Reduced exemption threshold for electric vehicles
Today, sales and leasing of electric passenger cars are exempt from VAT for consideration up to NOK 500 000. The government proposes to reduce this threshold to NOK 300 000.
The government has proposed that the change takes effect from January 1, 2026. The government has further announced that the exemption will be proposed to be abolished from January 1, 2027.
What does this mean for your business?
Companies that sell or lease electric vehicles should review pricing strategies for vehicles over NOK 300 000 and consider timing of sales and deliveries.
Special duties
The government proposes several changes in the special duties area that will affect costs for many businesses:
- Increased duty rates: An increase in duty rates is proposed for goods such as alcohol, tobacco products, lubricating oil, sugar, and beverage packaging.
- One-time duty on first-time registration of motor vehicles: A one-time duty is proposed for first-time registration of motor vehicles. For passenger cars, a weight-graded duty will be imposed, which also includes electric cars.
- Zero-emission vehicles: The government proposes to continue the exemption from one-time duty for zero-emission vehicles in 2026. The exemption will also apply to hydrogen vehicles.
- Traffic insurance: It is also proposed to exempt electric commercial vehicles with a curb weight under 1,785 kg from the traffic insurance duty.
- Weight and re-registration duty: The annual weight duty is proposed to be adjusted according to the vehicle's total weight and emissions. The re-registration duty will also be adjusted.
- Road use duty: The road use duty on fuel, which includes mineral oil, biodiesel, gasoline, bioethanol, petroleum gas, and natural gas, will be increased.
- Electric power: A reduced duty on electric power is proposed. The duty will be changed to a fixed rate of NOK 0,418 per kWh that will apply year-round, compared to today's NOK 0,979 per kWh in winter months and NOK 0,1693 per kWh for the rest of the year.
- Duty on greenhouse gas emissions: A general increase in greenhouse gas duties is proposed for 2026.
- NOx duty: The government proposes to increase the duty on nitrogen oxide (NOx) emissions from NOK 23.66 per kilo to NOK 24.07 per kilo in 2026, which is a price adjustment in line with estimated wage growth. The duty applies to energy production from oil, gas, coal, and coke in facilities with a combined fired capacity over 10 MW. The change is estimated to increase revenue by approximately 10 million kroner accrued and recorded in 2026.
Customs duties
The customs duty rates for 2025 will be continued in 2026. Here are the main changes:
New measures:
- Increased customs duty on agricultural products and fertilizer products from Russia and Belarus by 50% of the goods' customs value, in addition to ordinary customs duty. The measure will be implemented in spring 2026.
Administrative changes:
- The wording in the customs duty regulation § 2 first paragraph is changed to clarify that preferential customs duty rates only apply within the scope of goods covered by free trade agreements. The change is linguistic in nature and without material significance.
New free trade agreements:
- Free trade agreements with India, Kosovo, Thailand, and Malaysia have been adopted or are under consideration.
Revised Rules of Origin Convention with simpler and more liberal rules entered into force on January 1, 2025.