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VAT in Norway

VAT in Norway

The taxation system of Norway is very efficient and at the same time very well calculated in order to maintain an continuous investment flow in the economy of the country. The standard rate for VAT is of  25%, but there are as well some reduced rates of 15%, 10% and 0% which are applied to several types of products and commercial activities.

Our Norwegian company formation specialists are ready to provide complete services regarding VAT registration.

VAT registration for foreign companies in Norway

A foreign corporation may register for VAT without having to establish a local business; nevertheless, it must select a Norwegian VAT representative. For the purpose of reporting and paying VAT to the Norwegian authorities, the representative and the firm are jointly responsible. The agent is also in charge of all correspondence between the business and the Norwegian tax authorities.

The Norwegian market is quite appealing for foreign entrepreneurs and companies that establish branch offices and subsidiaries here. These must also comply with the regulations imposed under the VAT Law, however, not all foreign companies are required to register for this tax upon establishment their offices here.

Foreign companies with operations in Norway become liable for VAT only at the moment they start selling goods or services that imply collecting this tax. However, they can also become liable once they reach the 50,000 NOK threshold within a calendar year.

Overseas enterprises that do not have a place of business or local address and want to apply for VAT registration in Norway must appoint a representative to act on their behalf with the tax authorities. Our agents can offer such services.

Through the VOEC scheme ((Value Added Tax on E-commerce), foreign businesses exporting goods to Norwegian consumers for less than NOK 3000 can complete a streamlined VAT registration with the Norwegian Tax Administration. The consumer from Norway won’t have to deal with customs declarations or taxes upon receiving the products because the foreign company will have reported Norwegian VAT on the transaction by that point.

There are also certain exemptions from appointing fiscal representatives for companies registered in some EU and EEA countries. Among them are: Czech Republic, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Island, Italy, Croatia, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, or Sweden.

Even with these exemptions, appointing a Norwegian tax agents can simplify the relationship with the tax authorities here. Our accountants can offer such a service, should you need it.

If you want to open a company in Norway and need guidance on obtaining a VAT number, our local advisors can help you in both endeavors.

VAT registration for domestic enterprises in Norway in 2023

The process of obtaining a VAT number in Norway in 2023 is not complicated and can be part of the business registration procedure when the shareholders want to avoid complications or additional procedures later.

When setting up a business or operating as a sole entrepreneur in Norway, there are specific situations that apply when it comes to the value added tax and registration for it. Even if the levy is an indirect one and it applies to the final consumer who purchases the goods or services, it should be noted that the tax is also levied on the import of goods.

Compared to other European countries, the VAT regulations in Norway are more complex and provide for penalties in case of failing to comply with the national standards.

If you need support in VAT registration in Norway, you can use the services provided by our company formation specialists.

The VAT represents a consumption tax which applies on a product at each stage of the good’s production. If you started already the procedures for your company registration in Norway, you should be aware that every enterprise which conducts commercial activity in this country for more than twelve months and with revenues of more than 50 000 NOK is obliged to register forVAT and to emit invoices with VAT

You will be considered a taxable entity in Norway if:

  • • your company deals with the delivery of merchandise in Norway;
  • • you have export activity from Norway;
  • • you import, assemble or install goods in Norway;
  • • your enterprise provides services such as consultation, entertainment or sport;
  • • your annual turnover is more than 50 000 NOK.

If you want to know more about the way in which the 2023 VAT regulations in Norway should apply to your company you can call on the expertise of our specialists in company formation in Norway

The procedure for Norwegian VAT registration in 2023 can be done in a simple manner with the help of our agents.

Voluntary VAT registration in Norway

Based on current turnover, there is a NOK 50,000 yearly barrier for VAT registration. If your annual sales turnover is less, registration is not required.

However, a lot of businesses below this level choose to voluntarily register for VAT. This gives them the opportunity to recover any VAT paid to Norway for providing the products or services. For instance, invoices from local subcontractors or VAT on imported goods. Companies that only make exempt supplies may also choose to register voluntarily.

Our company formation agents in Norway can assist with the VAT registration process during the business incorporation stage.

Foreign enterprises must also register for VAT in Norway in 2023 if they supply VAT-payable goods or services and those who need assistance can rely on our company formation specialists.

Obligations of companies registered for VAT in Norway

Norwegian companies that have obtained VAT numbers also have certain obligations they need to comply with. These are:

  1. they must collect the amounts due for the tax from the consumers;
  2. they must prepare financial documents that attest the payment of the VAT;
  3. they must compute declare and pay the amounts collected to the Tax Administration;
  4. they must pay the difference between the output VAT (the tax collected) and the input VAT (the tax paid on the purchase of the items or services sold).

We have a team of experts in accounting matters who can help you with VAT registration in Norway. We can also offer other accounting services to local and foreign companies.

Filing VAT returns in Norway

Companies and businesspersons selling VAT-liable goods or services must also file returns on the income obtained this way. These returns must be filed twice a month, while the payment of the due amounts must be made no later than 40 days after submitting the declarations.

VAT registration in Norway comes with various advantages, among which one of the most important refers to the fact that the taxpayer is entitled to refunds under certain circumstances.

If you need support in company formation in Norway, our representatives are at your service. We can provide tailored support no matter the operations you want to establish here.

More VAT facts in Norway in 2023

If you want to open a company in Norway, the sector of the business activity will not decide only the type of entity that you are going to choose but also whether you remain outside the VAT scope. If you provide health care services or if you conduct educational activities, then you are not forced to apply for VAT. The social and financial services have the same status in terms of VAT

The reduced rates of 15% and 10% function for the delivery of food and accommodation services, passenger transportation, and cinema industry. When you don’t necessarily decide to open a company in Norway but still remain involved in the Norwegian market, you can call on a VAT representative in order to register for VAT in 2023.

VAT refunds in Norway

Purchases made up to three years prior to registering in the VAT register are eligible for VAT deductions. A requirement is that the product was utilized in a VAT-required business activity and that it is not sold without include VAT. When submitting the VAT return for the time period during which the business is registered for VAT, it must request a retrospective VAT settlement. There is no need to provide proof of purchases. However, the documentation must be accessible in the company’s accounts and must be available for presentation if necessary.

It is possible for certain companies to claim refunds for this tax, in accordance with EU Directives 8 and 13. These directives apply to foreign companies supplying goods and services in Norway and that must meet the following requirements in order to claim such refunds:

  • – they must not be registered for VAT in Norway;
  • – the tax paid is related to the activities of the claimant;
  • – the claimant must file the original invoice indicating the payment of the VAT in Norway.

If you need support in claiming VAT refunds in Norway, you can rely on our team.

VAT-related services in Norway

Our specialists offer a wide range of services to foreign investors and businesspersons coming to Norway and who want to set up enterprises here.

Among these, we mention the following:

  • – voluntary or compulsory VAT registration ;
  • – VAT compliance in order to avoid penalties;
  • – VAT reporting in accordance with the VAT act;
  • – applications for VAT refunds.

If you are interested in VAT registration in Norway and still have uncertainties, you can ask for more information from our local advisors. We invite you to watch our video below:

VAT rates in Norway at the level of 2023

According to the Norway Tax Administrationthese are the rates of the value added tax at the level of 2023:

  • – the standard rate remains 25% on most goods and services;
  • – a reduced rate of 15% applies on food products and beverages;
  • – the supply of raw fish is subject to a rate of 11.1%;
  • – a 6% rate applies on certain cultural activities and sporting events;
  • – the same reduced 6% rate also applies on transportation services;
  • – a 0% rate is levied on e-books.

New VAT filing requirements

There is a new requirement, which is intended to provide easier and more accurate reporting, when submitting the VAT return for general industry or primary industry for the period beginning after 1 January 2022. The new forms to be filed are:

  • – the VAT return for general industry that is employed by most Norwegian companies;
  • – the VAT return for primary industry which is available for self-employed persons operating in the agriculture, forestry, and fishing sectors.

Feel free to enquire with our accountants in Norway about these new forms.

VAT de-registration in Norway

When a company’s taxable turnover stops, whether due to business closure or a change in the company’s nature that results in merely taxable turnover, the company is required to notify the VAT Register of the deletion.

The firm will not automatically need to be removed from the VAT Register if its vatable turnover in a given year is less than NOK 50,000. However, the business must be removed from the Register if its turnover stays below the threshold level for the following 2 consecutive years.

Tax liability in Noway

Norwegian tax law makes a distinction between non-resident taxpayers’ restricted tax liability and resident taxpayers’ full tax liability. While non-resident taxpayers are only required to pay income tax on a limited range of income from Norwegian sources, residents are required to pay income tax on their entire worldwide income. A PAYE system is being implemented and is operational as of January 1, 2019, to streamline reporting and compliance for temporary employment in Norway. Except for offshore employees and shipboard seamen, the PAYE scheme is applicable to non-residents who are subject to a limited amount of tax.

The VAT returns must be submitted at each two months on an electronic platform called Altinn. For specialized support in VAT registration in Norway, feel free to contact our local specialists in company formation.