Norway is not a member of the European Union, but it is one of the founding nations of the European Free Trade Association (EFTA) and is part of the European Economic Area (EEA). That makes it a kissing cousin to the EU and subject to many of its economic policies. Over the past decade, Norway has surged ahead of other countries when it comes to electric car adoption largely because those vehicles are exempt from paying the value added tax that applies to conventional vehicles.
The VAT can add thousands if not tens of thousands of dollars to the price of a new car in Norway. The exemption means electric and plug-in hybrid cars cost the same or sometimes less to purchase than a traditional diesel or gasoline powered car. But it is set to expire at the end of this year and Norway needs permission from ESA for it to continue, going forward.