This tax guide provides an overview of the indirect tax system and rules to be aware of for doing business in Norway.

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Indirect tax snapshot

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What is the principal indirect tax?

VAT applies to the following transactions:

  • supply of goods or services made in Norway by a taxable person
  • importation of goods, regardless of the status of the importer
  • purchase of intangible or remote supply services from abroad by a Norwegian taxable person or public body
  • withdrawals of goods/services from a registered enterprise or an enterprise with a registration obligation for a use outside the scope of the VAT act.
Is there a registration limit for the tax?

VAT liable is any business entity or individual that makes taxable supplies of goods or services in Norway, in the course of a business.

The threshold for VAT registration is NOK 50 000 during a 12-month period. For charitable bodies and some non-profit organizations, the 12-month threshold is NOK 140 000.

Voluntary registration for VAT purposes for certain activities is possible, e.g., for leasing property for use by a taxable business.

‘Collaborating companies’ may form a VAT group. Group registration may apply if one or more companies own at least 85% of the capital in each company and if the companies are collaborating. There may be special issues for companies with foreign presence. VAT group may be formed upon notification to the VAT authorities.

The VAT group is regarded as one taxable person liable to payment of VAT. All of the VAT group members are jointly and severally liable for the correct payment of VAT. Transactions between companies within a VAT group are generally not subject to VAT. Note that the withdrawal of taxable goods or services from a taxable part of the group’s business may be subject to VAT.

Does the same registration limit apply to non-established businesses?

Yes, the threshold for registration is the same.

Is there any specific legislation to tax non-resident supplies of electronically supplied/digital services to private consumers resident in your country?

Foreign suppliers of electronic services, e.g., e-books, films, music and software, must calculate and collect VAT on their B2C sales to Norway.

The Norwegian Tax authorities have established VOES Norway for registration and reporting for non-established suppliers offering electronic services (e-services), including electronic communication services, to private individuals and non- business customers (B2C) in Norway.

Does a non-established business need to appoint a fiscal representative in order to register?

Taxpayers who do not have a place of business or domicile in the VAT area, must be registered by a representative. The representative must have a registered office or place of business in the VAT area. However, the duty to be registered by a representative does not apply to taxpayers who are domiciled in an EEA State who, pursuant to a tax treaty or other international agreement with Norway, shall exchange information and assist with the charging of VAT claims.

How often do returns have to be submitted?

In general, VAT returns should be filed bi-monthly, i.e., 6 periods per year.

Farmers and fishermen file VAT returns annually.

If the businesses have a taxable turnover less than NOK 1 million the business may upon application file VAT returns annually.

Businesses that receive regular VAT refunds may request shorter VAT return periods.

The business must contact the VAT authorities to register for annual returns or for permission to use shorter VAT return periods.

The VAT due for each period must be reported and paid in full within 1 month and 10 days after the end of the VAT period.

Are penalties imposed for the late submission of returns/ payment of tax?

Penalty interest is assessed for late payment of VAT. The penalty interest rate is announced twice a year. The annual interest rate as of 1 January 2022 was 8,5%.

An additional penalty of up to 60% of the tax due for a period may be imposed on taxable persons that willfully or negligently contravene the provisions of the VAT Act.

Penalties with up to NOK 61 150 may also be assessed for failing to submit VAT returns.

Are any other declarations required?

No, not in connection with VAT.

Are penalties imposed in other circumstances?

Yes, see above.

Can the VAT incurred by overseas businesses be claimed if they are not registered in Norway?

Non-resident foreign transporters that supply only international, zero-rated transportation services may choose between registering for VAT and thereafter applying for refunds of input VAT on VAT returns or remaining not registered and applying for VAT refunds through the refund regime.

What information must a VAT invoice show?

The invoice needs to have this information:

  • VAT output tax in NOK
  • the Business Register Number followed by the letters VAT
  • information regarding the VAT representative (name, address and Business Register Number).
Are there any current or anticipated Standard Audit File for Tax (SAF-T) or similar electronic/digital filing requirements eg invoice listing data file/real-time VAT reporting?

Norwegian SAF-T (Standard Audit File – Tax) is mandatory in Norway.

 

Contact us

For further information on indirect tax in Norway please contact:

 

Lars Ploen.PNG
Lars Pløen

T +47 982 07 209
E lars.ploen@no.gt.com

 

International indirect tax guide

International indirect tax guide

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