ARE YOU VAT LIABLE IN NORWAY?

VAT in Norway, how does it work? You would like to do business in Norway, but are you VAT liable in Norway? Like in all European countries, VAT exists also in Norway. And you have to charge VAT on most of your sales and purchases in Norway. Moreover, like all Norwegian companies, when you do business in Norway (even if you are not permanently based in Norway) you have to comply with the Norwegian legislation for VAT. How do you know that you comply?

VAT facts that matter

• Norway, as a member of Schengen, is not a member of the EU, however she is member of the EFTA (European Free Trade Association). Consequently Intra Community Supplies do not exists for Norway.
• The Norwegian VAT is officially called MVA (merverdiavgift), however  people would call it “moms”.
• VAT is payable on all sales of goods and services, except those that have been specifically exempted.
• Norway applies the standard VAT rate of 25%. While three reduced VAT rates with 0%, 12% and 15% exist.
• If you are selling goods or services in Norway, you have to register with the VAT Register as soon as the value of sales exceeds NOK 50,000 during a 12-month period. You register by sending Coordinated Register Notification to the Central Coordinating Register for Legal Entities or the tax office.
• Invoices to Norwegian customers should comply with Norwegian requirement on formal layout of the invoice. One of the requirements is that the invoice should mention the VAT amount in NOK.
• You report the VAT return and pay it bi monthly.  You can find the exact dates for VAT reporting and payment here.

WHEN VAT LIABLE IN NORWAY YOU CAN ALSO DEDUCT INPUT VAT

Input VAT is the VAT that accrues on the purchase of taxable goods or services. Companies registered in VAT register can deduct this input VAT charged in their VAT accounts. Certain goods and services are excluded however. The right to deduct input tax applies, in principle, to VAT on goods and services purchased for use in business activities that are liable to VAT only.

When registered in the VAT register you need a VAT-representative

Arborealis knows more about the VAT and VAT representation in Norway. We support you in growing your business in Norway.

• The Norwegian law has specific requirements for foreign companies that do not have permanent establishment in Norway, on their VAT returns.
• A VAT representative is common for all foreign businesses.
• From 1 April 2017 some European countries are exempted to have a VAT representation in Norway. However most companies still prefer to have VAT representative. Just because it is easy.

More general information about the Norwegian VAT return can be found here.

• You can only charge VAT  when you are registered at the VAT register (MVA Register).
• Who actually pays the VAT and in which country, important question if you are in a foreign country, in or outside the EU.
• When importing check if other Norwegian duties apply!

For those who want to read more on VAT & tax matters
The Guide on Norwegian VAT gives more information on Norwegian VAT.
Sometimes you might want to check that a Norwegian VAT number exists.