Revised National Budget 2025
Tax
A new tax scheme for agriculture is introduced from 1 January 2025. The scheme allows for tax deferral. Income can be placed in an account, and tax must be paid on at least 85% of the balance annually.
VAT
Reduction of grid rent
In January this year, the government announced measures to reduce the cost of electricity grid rent (“nettleie”). The government presented a reduction of the VAT rate on grid rent from 25 to 15% as a measure to achieve this. In the Revised National Budget, instead of reducing VAT on grid rent, the government proposes to reduce the electricity tax instead — see “Other” below.
Change to the VAT rate for water and sewage
In the 2025 State Budget, it was decided to reduce the VAT rate for water and sewage to 15%, with planned entry into force from 1 May 2025. Based on feedback from the consultation, entry into force has been postponed to 1 July 2025 to ease the introduction for municipalities.
Reversal of VAT on resale and other reallocation of passenger vehicles
From 1 July 2024, the rules on reversal of VAT on resale or other reallocation of passenger vehicles in rental and taxi businesses were changed. The reversal amount is calculated individually, based on the ratio between the purchase value and the value when the vehicle is resold (sale price).
In the 2025 State Budget, the government announced that it would shield taxis from these changes and that it would put forward a proposal on this in the Revised National Budget for 2025. In the Revised National Budget, after an overall assessment, the government has proposed that no changes be made for taxi businesses after all, so that the reversal rules in force since 1 July 2024 will continue to apply to taxis.
Other
From 1 July, the government proposes to reduce the electricity tax by 4.4 øre per kWh. This is intended to cushion increased costs for households and businesses as a result of investments in the power grid. The Enova levy is planned to be removed from 1 January 2026.
A new scheme will make it possible to share surplus power from renewable sources (particularly solar panels on commercial buildings) without electricity tax. The aim is to promote local power production in business areas.
The government is putting forward a legislative proposal on coordinating the mandatory and local reduction factor for property tax on residential and holiday properties. The rules in the proposal are consistent with the practice in municipalities up until the ruling of the Eidsivating Court of Appeal in 2023, and mean that a deduction in the valuation is only given for the highest of the reduction factors. Rules on notice and litigation deadlines for lawsuits regarding property tax on power plants are also proposed.
