Tuesday 10 April 2012

EVs tax free in Iceland

Iceland has added an extra inventive for EV buyers by exempting the first $47,000/ £29,500 of the purchase price of a new model from VAT.

EVs are already exempt from import taxes in Iceland. VAT on cars is currently set at 25.5%. The tax exemption will make most small EVs entirely tax free, making them price competitive with smaller combustion engine vehicles.