In Norway, VAT (or ‘Merverdiavgift’) was introduced in 1970. Norway's VAT has been a local system for the past 40 years after Norway chose not to join the European Community in 1972.
Click here if you would like free guidance on Norwegian VAT compliance - including fiscal representation.
Requirement to register for norwegian vat
For foreign companies making taxable supplies in Norway, there may be a statutory obligation to register for VAT. This includes the ongoing compliance requirements to file periodic tax returns and pay over any VAT due to the Norwegian tax office.
Typical situations requiring a Norwegian VAT registration include:
- Where goods are delivered within Norway;
- If the foreign trader imports, installs or assembles goods in Norway;
- Export of goods from Norway;
- Supplies of services, e.g, consulting services, sport and entertainment events.
Norweigan VAT registration threshold
There is an annual VAT registration threshold of NOK 50,000 (approx EUR 6,000), based on current turnover. It is not compulsory to register if your annual sales turnover is below this amount.
Many companies below this level, however, elect for a voluntary VAT registration. This enables them to claim back any Norwegian VAT incurred during the supply of the goods or services. For example, VAT on the import of goods, or local sub-contractor invoices.
Companies may also voluntarily register are if they make only exempt supplies.
Norwegian VAT Registration
A foreign company may register for VAT without the requirement to form a local company; however they must appoint a Norwegian VAT Representative. The representative and company are jointly liable for the reporting and payment of VAT to the Norwegian authorities. In addition, the agent is responsible for all communications between the company and the Norwegian tax authorities.
Norwegian VAT compliance
In Norway it is a requirement for the VAT Representative to raise and issue all invoices on behalf of the non-resident trader, indicating both the trader’s and the representative’s details.
There are detailed rules controlling the recording and processing of Norwegian transactions. These include guidelines on:
- Norwegian invoice requirements;
- Foreign currency reporting and translation;
- Credit notes and corrections; and
- What accounting records must be maintained.
VAT Rates in norway
The standard VAT rate in Norway is 25%. There is a reduced rate of 15% for food and drink. There is also an 8% VAT rate for: passenger transport; hotel accommodation; and other.
There are many variations to the rates above, including exempt taxable supplies. Click here for more details.
Norwegian vat returns
Periodic VAT returns must be submitted by all companies with a Norwegian VAT number, detailing all taxable supplies (sales) and inputs (costs). Generally, returns are submitted bi-monthly in Norway. VAT returns in Norway are due one month and ten days after the reporting period.
Payments of any associated VAT liability must be paid by the return deadline. In the case of a tax credit (where the VAT incurred by the company exceeds the VAT charged on its sales in the reporting period), approved credits will be paid over to the company within three weeks of the return deadline.
Norwegian vat recovery
It is possible for foreign businesses to apply for a VAT refund in Norway, along the lines of the European Union’s 8th & 13th VAT Directives. The following conditions should be fulfilled for a foreign business to recover VAT refunds in Norway:
- the company is not liable to be VAT registered in Norway;
- the VAT is concerned with the applicant’s business activities; and
- original invoices showing Norwegian VAT can be provided.
How TMF VAT can help in norway
TMF can help ensure non-resident companies are fully compliant for Norwegian VAT, and are able to keep any cash flow impact to a minimum. With local professionals on the ground in Oslo, TMF is in regular touch with the tax office, meaning it is often able to get the best settlement possible on behalf of its clients.
VAT services that TMF Norway provide include:
- Full Fiscal Representation service;
- Registering companies with the tax authorities;
- Up-to-date guidance on VAT compliance regulations, including invoicing formats and exchange rate conversion rules;
- VAT filings and payments;
- Organising repayments of VAT credits; and
- Liaising with the tax authorities, and fielding any queries or tax audits.
To learn more about TMF VAT Co-ordination, contact us:
+44 (0)870 067 8881