- Mar 30, 2012
Iceland exempts first $47,000 of electric vehicle price from VAT charges
Iceland is already heads and shoulders above other countries when it comes to using renewable energy, but it still needs to import lots of oil and gasoline. The people pushing the country to go electric – like our friends at Northern Lights Energy, which wants to sell lots of electric vehicles to Icelanders soon, EVs like converted Ranger Rovers and Amp'd SUVs – got a bit of good news recently.
Northern Lights Energy's Gísli Gíslason let us know that Iceland's government has made it more affordable to buy a plug-in car. Gislason called it a "big step" and wrote:
As you know, Iceland has no import taxes on EVs (and very high import taxes on combustion engine cars). Unlike Norway (which is number 1 in the world in incentives for EVs) we have had very high VAT (Value Added Tax) on all cars (25.5 – but the first $47,000 will be VAT free.
Gislason said this change means that most, if not all, of the smaller electric vehicles sold in Iceland will be baxically tax free, making them roughly price compatible with similar sized combustion engine cars. For Gislason and his team that hopes to have EVs for sale in Iceland before the end of the year. "This is what we have been waiting for."