Tax benefits and incentives for electric cars in Sweden

Taxable value: The taxable value is the basis for the vehicle tax and is calculated on the basis of the vehicle's price including VAT and any battery exemption. Other deductions and allowances have been removed to determine the taxable value.

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  Example: An electric car that costs SEK 300,000 including VAT and no extra additions or deductions are applied for this example.
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  The taxable value of the electric car is calculated by taking the total price including VAT and any deductions or additions. In this case, we have no deductions or additions, so the taxable value will be equal to SEK 300,000.
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  The taxable value of this electric car is SEK 300,000.
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  When calculating the vehicle tax, the taxable value is used as a basis, and the tax can then vary depending on other factors such as tax class (depending on fuel type and carbon dioxide emissions) and any bonus-malus system.

Tax classes: In Sweden, there are different tax classes for vehicles depending on fuel type and carbon dioxide emissions. A lower tax bracket often applies to electric cars and cars with low emissions, which means a lower vehicle tax compared to traditional ICE vehicles.

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  Carbon dioxide emissions: Carbon dioxide emissions often affect the vehicle tax. Cars with high carbon dioxide emissions are usually taxed more than cars with low or no carbon dioxide emissions.
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  Example: Petrol-powered car with high carbon dioxide emissions: Suppose we have a petrol-powered car with a carbon dioxide emission of 180 grams per kilometre. To calculate the vehicle tax for this car, we must first consult the current tax deduction system for cars with high carbon dioxide emissions.
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  The tax credit system for cars with high CO2 emissions could look like this (note that this is only a fictitious example):
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  Up to 100 g/km: SEK 1,000 in tax per year.
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  101-150 g/km: SEK 2,000 in tax per year.
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  151-180 g/km: SEK 3,000 in tax per year.
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  Over 180 g/km: SEK 4,000 in tax per year.
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  If our petrol-powered car has a carbon dioxide emission of 180 g/km, it falls into the highest tax bracket according to this example. Therefore, the vehicle tax for this car is SEK 4,000 per year.
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  Electric car with no carbon dioxide emissions: For an electric car that has no carbon dioxide emissions, the tax rate would usually be lower or in some cases exempt, but today the government has decided that a fixed value of SEK 360/year should be applied to electric cars.

Bonus-malus system: In Sweden, a bonus-malus system is also applied for vehicle tax, which means that there may be financial incentives and sanctions depending on the vehicle's carbon dioxide emissions. Cars with low carbon dioxide emissions may be eligible for a "bonus", while cars with high emissions may receive a malus charge.