Buying a car in Norway - what taxes do you need to pay?
Want to buy a car in Norway and wondering what costs will be involved? We can help.
In Norway, for tax purposes, we divide this into 4 situations:
- Buying a new car from a dealer
- Buying a used car from a dealer that was previously registered in Norway
- Buying a used car from a dealer that was not previously registered in Norway
- Buying a car from a private individual
Read on to find out what to expect in each situation.
Buying a new car from a dealer
When buying a new car from a car showroom, we need to take into account two charges: engangsavgift, vrakpantavgift and merverdiavgift, or MVA (VAT).
- Engangsavgift is a one-off charge calculated on the basis of the vehicle's tax class, net weight, CO2 emissions, nitrogen oxide emissions and engine capacity. For some vehicles, engine power is also taken into account.
- Vrakpantavgift translates into English as a scrappage fee - which sounds odd in the case of a new car, but it is a charge levied for the future possible disposal of the car as scrap. It is a one-off fee paid at the first registration of the car.
- Merverdiavgift is Norwegian VAT, that is value added tax. It is charged on the sale of almost all products and the provision of almost all services. In Norway, the standard MVA rate is 25%, and this rate also applies to cars. So we always need to add 25% MVA to the net price of the car.
As a rule, these charges are already included in the price you pay the dealer. Some vehicles are exempt from certain charges or receive a tax reduction. These include electric cars, for example.
Buying a used car from a dealer
A car previously registered in Norway
If the car was previously registered in Norway, the charges mentioned above have already been paid. So in this situation we only need to pay one thing, namely omregistreringsavgift - the re-registration fee for the vehicle.
This fee depends on several factors and you can calculate the exact amount on the Norwegian tax authority's website - click here.
A car previously not registered in Norway
If the car you are buying was not previously registered in Norway, unfortunately you also need to pay engangsavgift and vrakpantavgift, which were described in the section “Buying a new car from a dealer”. As for VAT, it is paid when the car is imported into Norway and becomes part of the price you pay the dealer/importer.
However, if the car was previously registered outside Norway, we can claim a deduction from engangsavgift, known as bruksfradrag. Here, a percentage deduction is granted, which increases regularly until the car reaches 20 years from the date of first registration abroad to the date of registration in Norway - for example, if the car was first registered in Poland in January 2017 and was first registered in Norway in January 2024, 7 years have passed - we will pay 66% less engangsavgift.
Buying a car from a private individual
When buying a car from a private individual, in the vast majority of cases it will be a car that was previously registered in Norway. So in this situation, just like when buying a previously registered car from a dealer, we need to pay one thing - omregistreringsavgift, that is the re-registration fee for the vehicle.
This fee depends on several factors and you can calculate the exact amount on the Norwegian tax authority's website - click here.
If you need help with official matters - please contact us: +47 21 38 38 21. We answer Mon-Fri from 9:00 - 21:00 and will be happy to help!