Tax & Accounting Blog

Norway Revised Budget – Paper, Boats, and Electric Cars

Blog, Indirect Tax, ONESOURCE, Sales and Use Tax July 7, 2014

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The Norwegian Ministry of Finance has released the Revised National Budget 2014. Several changes are anticipated to have revenue impact for Norway. The current fee of 161.50kr/hp on boat engines will be removed effective July 1, 2014. The move is designed to spur purchasing of newer, fuel-efficient and environmentally friendly engines. The revised budget also delays the exemption from VAT for leasing of electric vehicles and the sale of battery electric vehicles. Imposition of a temporary reduced rate tax on electricity for the pulp and paper industry effective July 1, 2014 will replace the current exemption. If taxing authorities later decide to continue the exemption tax refunds will be issued.