Standard Tesla Model Y in Norway 2026 ahead of new VAT

Norway – the market considered the capital of electric vehicles – is entering a period of normalization as the government announced a roadmap to remove tax incentives for electric vehicles over the next two years. For a hot-selling model like the Tesla Model Y, especially the standard version, this is a direct test of the price structure and value of a popular electric SUV when the cost of buying a car increases again.

“We have already reached the target of all new passenger cars being electric by 2025. So now is the right time to start phasing out the incentives,” Finance Minister Jens Stoltenberg stressed. New car registration data shows that electric cars will account for 98.3% of sales in September 2025, and 89% by 2024.

Tesla Model Y in Norway has to worry about VAT compensation — The Tesla Model Y is one of the models that will be significantly affected when Norway plans to change its VAT policy for electric cars from 2026 to 2027.

Background and Highlights: Values Challenged by Taxes

Under the new budget plan, Norway plans to:

Reduce the VAT-free price threshold for electric vehicles from 500,000 to 300,000 kroner in 2026 (equivalent to about $29,700 according to the source).
Completely remove VAT exemption for electric cars from 2027, if approved by parliament .

Currently, only the Tesla Model Y Performance, which costs more than 500,000 kroner (about $49,600), is subject to VAT. When the exemption threshold is reduced to 300,000 kroner, the buyer of a standard Model Y priced at 422,000 kroner (about $41,800) will incur an additional cost of about 30,500 kroner (>$3,000). By 2027, when the exemption is removed, the cost could increase by about 75,000 kroner (>$7,400).

Illustration of VAT exemption threshold for electric vehicles in Norway — The VAT exemption threshold is expected to decrease to 300,000 kroner from 2026 and be eliminated in 2027, directly affecting mid-range models such as the Model Y or Volkswagen ID.4.

Design: Pragmatic thinking under cost pressure

No design changes are mentioned in the policy announcement. However, the main point of interest for Model Y buyers in Norway in 2026–2027 is the issue of rising initial ownership costs. Compared to mentioned competitors such as the Volkswagen ID.4, the Model Y will face a similar situation when it falls below the 300,000 kroner VAT-free threshold in 2026.

In a saturated EV market, design is no longer as big a differentiator as total cost of ownership. The sticker price after taxes becomes a central part of the buying decision.

Interior and experience: Clean charging infrastructure advantage

Specific information about materials or interior configurations is not listed in the source data. On the other hand, the daily use experience of Model Y users in Norway is still supported by the electricity infrastructure from hydroelectric and wind power. Clean energy helps the charging-operating journey to maintain sustainability, an advantage that gasoline cars do not have.

However, as the cost of buying a car increases, users will consider more carefully between technological utilities and depreciation over time. This is where the new policy unintentionally pushes buyers back to comparing value - features - actual needs.

Performance and driving feel: No figures, decision based on needs

The data source does not provide technical specifications or performance figures for the Model Y, so the driving experience in this article is not to be interpreted. The decision to buy a car in the new context will have to rely heavily on personal usage needs, local infrastructure and the cost difference compared to gasoline cars after the government also plans to increase the one-time registration tax on internal combustion engine cars.

Safety and technology: No updates yet, focus on policy

The challenge in Norway right now is not to add safety equipment or driving technology, but to adjust the tax structure. The data source does not mention the specific safety ratings or driver assistance systems of the Model Y. Buyers should look for more information from the manufacturer and independent rating agencies when making their decision.

Price and Positioning: Direct Impact on the Standard Model Y

Mold	VAT exemption threshold for EV	Impact on standard Model Y	Increase estimated costs
Present	500,000 kroner	VAT not included (price 422,000 kroner)	0
2026	300,000 kroner	Exceeding the threshold, VAT is incurred	≈30,500 kroner (>3,000 USD)
2027	Remove exemption	Fully VAT-free	≈75,000 kroner (>7,400 USD)

While Tesla is still growing steadily in Norway, its price advantage could narrow when VAT returns. On the other hand, the government plans to raise the one-time registration tax on petrol and diesel vehicles to maintain the gap in favour of electric vehicles during the transition period. That should keep the EV’s total cost of ownership advantage intact, despite the initial price increase.

EV users in Norway will lose the cost of buying a car from 2026 — The Norwegian Electric Vehicle Association fears that big and fast changes could make some users consider returning to petrol cars.

Conclusion: The standard version before the “post-incentive” test

“I’m concerned that big, rapid changes will push many people back to gasoline cars. No one wants to go back to that,” said Christina Bu, president of the Norwegian Electric Vehicle Association. “But this is an inevitable process as the EV market matures: from encouragement to normalization.”

Advantage

Clean electricity infrastructure supports sustainable user experiences.
The tax increase on gasoline and diesel vehicles could keep the total cost of ownership differential in favor of EVs.
The market is used to EVs, the charging network is growing.

Limit

The initial purchase price of a standard Model Y is expected to increase by around 30,500 kroner from 2026 and by around 75,000 kroner from 2027.
Risk of short-term drop in demand as incentives disappear.
The decision still needs to be approved by the National Assembly; risk of policy change.

For Norwegian consumers, the decision to buy a standard Tesla Model Y in 2026–2027 should be based on the calculation of the total cost of ownership under the new VAT roadmap, travel demand and the expected changes to the petrol and diesel vehicle tax. This will be the real measure of the attractiveness of EVs when they leave the preferential “buffer zone”.

Source: https://baonghean.vn/tesla-model-y-tieu-chuan-tai-na-uy-2026-truoc-them-vat-moi-10308337.html