Norway

VAT Basics

VAT deduction limits in Norway

Input VAT is generally deductible provided the following conditions are met:

• The goods or services are used for business purposes
• The transaction is duly documented in a VAT invoice.
• Additionally, the payment must be made through a bank transfer, unless the total amount is less than NOK 10,000.
• Businesses can only claim VAT from purchases where the seller is registered in the VAT register and where the sales document contains the supplier’s organization number and the letters MVA.

The statute of limitations is three years.

Examples of expenses that are non-deductible are entertainment expenses, tobacco and alcohol, restaurant and catering services, advertising gifts, expenses related to motor vehicles, and construction or maintenance services of immovable property.

VAT deduction limits are regulated in Section 8 of the Norwegian VAT law, while the need for a VAT invoice to be eligible for deduction is included in section 15-10 of the Norwegian VAT Act. Learn more.

Statute of Limitations in Norway

Norway sets different statute of limitations depending on whether we refer to the time for the tax administration to inspect past periods, or the time taxpayers have to claim input VAT.

• The statute of limitations is five years when it concerns the period on which the tax authority can go back to review the information declared, and apply additional VAT assessments, penalties or interests. This period may be extended up to 10 years if the taxpayer voluntarily corrects previous tax periods.
• However, the taxpayers have three years to claim VAT incurred in Norway.

Time of supply (or tax point rules)

The tax point is the time when VAT becomes due. VAT due should be distinguished from VAT payable. VAT is due when the tax point occurs. VAT is payable between the day after the end of the reporting period and the due date to submit and pay the VAT return.

• General rule: The general tax point is by the time the goods are delivered and the services are performed.
• Invoice date: Invoices may be issued within one month after the date of the delivery of the goods or the provision of the services. In this case, the time of supply may be deferred, so the tax point corresponds to the invoice date.
• Continues supplies: similarly, for continues supplies, an invoice must be issued up to the 15th working day following the month of delivery. In this case, the time of supply may be deferred, so the tax point corresponds to the invoice date.
• Partial and advanced payments: generally, do not impact on the tax point. The general rule continues to apply.
• Import: Tax point occurs when the goods are imported according to the relevant import documents.

Use and Enjoyment Rules

Norway has not implemented the use and enjoyment rules.

Bad Debt relief in Norway

Bad debt refers to an unpaid invoice for which the Supplier has paid the VAT to the tax administration: this is, an invoice has been issued with VAT, reported in the VAT return and the VAT amount has been paid to the tax authorities but the whole price has not been collected from the customer. This is often due to the client´s bankruptcy, insolvency or simple missed payments to suppliers. In these cases, most countries offer the possibility to recover the VAT initially paid to the authorities, however, the conditions vary from one country to another.

Bad debt relief refers to the possibility of recovering the VAT from unpaid invoices. Norway allows for bad debt relief. The condition is that the debt must be regarded as indefinitely unrecoverable from the recipient of the supply:

• There is no need to proof insolvency from the customer, but it should be evident that the debt is irrecoverable.
• The loss is recorded on the customer’s account and a special list must be made, including the date, name of the customer, the amount in question.

You may refer to section 4-7 of the MVAL and article 4-7-1 of the Norwegian VAT Regulation.

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VAT registrations and simplications in Norway

When do you need to register for VAT in Norway?

Generally, foreign non-established business must register for VAT (Value Added Tax) in Norway as soon as the annual threshold for taxable supplies is exceeded. The following are the usual examples of taxable transactions in Norway:

• Domestic supply of goods and services not reverse charged: A supply of goods located in Norway where the reverse charge does not apply.
• Export of goods: Exporting goods to another country requires a VAT number before the export occurs.
• E-commerce: Foreign suppliers performing remote supplies of services and low-value goods to Norwegian customers may have to register for VAT in Norway. This is referred to as the VOEC scheme.

Businesses, both established and non-established, benefit from a VAT registration exemption threshold, calculated on an annual basis:

• When the turnover exceeds the threshold of NOK 50,000, enterprises and most organizations must register in the Value Added Tax Register. Learn more.
• For charitable and non-profit organizations, the threshold is NOK 140,000.

The registration exemption threshold is calculated considering all taxable and zero-rated transactions performed in Norway. If the requirements for registration are not met, the taxpayer may opt to register in the simplified registration system.

Small businesses and those involved only in exempt transactions are not required to register for VAT in Norway.

You must only consider your supplies subject to VAT for calculating the threshold, excluding those supplies that would be VAT-exempt. Also, businesses must register for VAT when the threshold is exceeded, or before, if the turnover is expected to cross the threshold during the following 12 months.

Input VAT incurred prior to VAT registration is regulated under Section 8-6 of the Norwegian VAT Act: "(1) A registered taxable person is entitled to a deduction for input VAT on goods and services that have been acquired up to three years before registration in the VAT register (retroactive tax settlement) to the extent that the acquisitions are directly related to the turnover of the registered business. However, this does not apply to goods and services that have been sold before registration. Claims for deductions must be made no later than three years after registration. Claims for deductions for input VAT on acquisitions that form part of a capital good as mentioned in § 9-1 second paragraph letter b must be submitted within three years calculated from the right to retroactive tax settlement. The time limit in the first sentence does not apply to such acquisitions that are part of a capital good as mentioned in section 9-1, second paragraph, letter b".

Learn more about VAT registrations in Norway.

Register of Business Enterprises for NUF and VAT registration

Before VAT registration, it is essential to determine whether a foreign business is considered to be carrying out business operations in Norway. This assessment impacts both VAT obligations and registration requirements.

A foreign business may be deemed to operate in Norway if it generates a turnover of NOK 50,000 or more within 12 months, and the activity continues for more than 90 days.

Indicators of Business Activity in Norway: The following factors are typically considered when assessing whether a business is operating in Norway:

• Presence of employees in Norway
• Entry into contracts within Norway
• Maintenance of inventory in Norway
• Customer perception of dealing with a Norwegian-based business
• Services physically carried out in Norway

If these indicators are met, the business may be required to register as a Norwegian Registered Foreign Company (NUF) in the Register of Business Enterprises, in addition to VAT registration.

Notably, registration does not require a Norwegian business address. Learn more.

VOEC Scheme in Norway. VAT on E-Commerce

Foreign businesses selling goods with value below NOK 3,000 or remotely delivered services to Norwegian consumers must collect and pay VAT to Norway.

Remotely supplied services, or Fjernleverbare tjenester, are services that may be delivered from a remote location, and which would have been subject to VAT if sold by a Norwegian business. Electronic services that are delivered over the internet, are impossible to deliver in the absence of information technology and are of a nature which renders their supply essentially automated are also considered remotely deliverable services.

For this purpose, there is a simplified scheme for the registration and reporting of these sales known as the VOEC scheme. Foreign suppliers must register under Norwegian VOEC if the following conditions are met:

• You do not have a registered business address in Norway
• You sell low-value goods (below NOK 3,000) and/or remote services.
• You sell to Norwegian consumers (B2C)
• You are not registered in the ordinary VAT register.

Certain goods are not covered under the VOEC scheme:

• Foodstuffs (including food, beverages, supplements and vitamins)
• Goods subject to import restrictions (including pharmaceutical products, weapons, alcohol, tobacco)
• Goods subject to excise taxes (including sugar, beverage packaging, lubricating oils, major appliances that cause greenhouse gas emissions).

VOEC VAT returns must be submitted on a quarterly basis, even if nil (no activity performed during a given quarter). The deadline is the 20th day of the following month. The payment instructions are provided once submitted.

To correct a VOEC return, you must consider the following guidelines:

• If you are going to change something for the last quarter, you must submit a new VAT return. It is always the most recently submitted VAT return that applies.
• If you want to change something for previous periods, you must use the correction fields in the most recent VAT return.

Learn more about the VOEC scheme. Also, Customs authorities provide further information on VOEC. Also, find the definition of remotely delivered services. The VOEC scheme for goods and services is regulated in section 14-4 and following of the Norwegian VAT Act.

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Obligation to register Ultimate Beneficial Owners (UBO) in Norway

In addition to VAT registration, businesses operating in Norway may also be subject to an obligation to register their Ultimate Beneficial Owners (UBOs) in the Register of Beneficial Owners.

This requirement forms part of Norway’s anti-money laundering framework and applies broadly to entities registered in or carrying out business activities in Norway, including foreign businesses with a Norwegian presence.

As a result, businesses registering for VAT—particularly those required to register as a NUF or in the Register of Business Enterprises—should assess in parallel whether they are also required to complete UBO registration.

For newly established entities, UBO information must be submitted within 14 days of registration, and any changes must also be updated within 14 days.

Who Qualifies as a Beneficial Owner? A beneficial owner is a natural person who ultimately owns or controls a business. In Norway, an individual is considered a UBO if they meet one or more of the following criteria:

• Own more than 25% of the shares
• Control more than 25% of voting rights
• Have the right to appoint or remove more than 50% of the board members
• Exercise control or influence through other means (e.g. veto rights or agreements)

Both direct and indirect ownership/control must be considered.

The obligation applies to most legal entities operating or registered in Norway, including Norwegian companies (AS, ASA), partnerships and cooperatives, foundations (with certain exceptions), and Norwegian-registered foreign businesses (NUFs), where applicable. Learn more.

Take a look at our article on the introduction of UBO registration obligation in Norway.

Fiscal representative requirements in Norway

Some countries require foreign companies to appoint a fiscal representative when registering for VAT. This is the case for Norway.

The fiscal representative must have a place of residence or business in Norway. Also, the fiscal representative is jointly and severally liable for the VAT compliance obligations of the taxpayer.

The obligation to register by a VAT representative does not apply if the enterprise is established in the United Kingdom or one of the following EEA countries: Belgium, Denmark, Finland, France, Ireland, Iceland, Italy, Luxembourg, Malta, The Netherlands, Poland, Portugal, Slovenia, Spain, Sweden, Germany, Czech Republic, Bulgaria, Estonia, Greece, Croatia, Cyprus, Latvia, Lithuania, Romania, Slovakia, Hungary and Austria.

Learn more.

VAT groups in Norway

Where more than one taxable person established in Norway are closely related, these companies can create a VAT group and be treated as a single taxable person for VAT purposes in Norway. The intra-group transactions are disregarded for VAT purposes.

To qualify for VAT group registration, the enterprise must fulfill the following requirements:

• All the cooperating enterprises must be engaged in business activity.
• At least 85 percent of the capital from each cooperating enterprise must be owned by one or more of the other enterprises.
• At least one of the enterprises must have an external turnover exceeding the VAT registration threshold. External turnover refers to turnover resulting from transactions made with parties other than the enterprises participating in the group.

Only one of the enterprises needs to apply.

The VAT group registration only impacts VAT, so the companies part of the group must continue submitting their own tax returns.

Find official information about VAT groups in Norway, under Find the correct registration: Register several enterprises at the same time (joint registration).

Small Businesses VAT Scheme in Norway

Small businesses may benefit from the following a special VAT regime, according to which they can file returns on an annual basis.

The following requirements apply to applicants for annual periods:

• Your turnover during the past 12 months must be less NOK 1 million.
• You must have been registered in the VAT Register for at least one year.
• You must have submitted tax returns for VAT correctly and punctually on an bi-monthly basis for at least one year.

Application and deadlines:

• Application for small business regime: 1 February
• Deadline for submission of annual VAT returns under the small business annual scheme: 10 March (applies if you have applied for and have been granted an annual reporting period).

You may find additional resources about small businesses application.

Customs Special Regimes and Mechanisms in Norway

Postponed import VAT accounting

Normally, import VAT is paid upon arrival of the goods. However, to compensate for the cash flow disadvantages of these rules, most countries allow simplification where this VAT is either paid at a later stage (so called "postponed import VAT accounting") or import VAT is reverse charged in the next VAT return of the business importing the goods. Norway applies the postponed import VAT accounting to all VAT registered taxpayers.

In Norway, it is not necessary to make any specific request or meet any requirements in order to apply import VAT reverse charge. Taxpayers with a VAT registration in Norway do not pay VAT on imports at Customs, but they will postpone it to VAT return. Postponed import VAT accounting applies as a general rule in Norway: i.e., the import VAT will be calculated by the importer and deducted in the reporting period corresponding to the date of the customs declaration.

Learn more about how to calculate and declare import VAT in Norway, go to section 6 for Posting.

Temporary Imports and Re-imported Goods

1. Temporary imports of goods are imports where the goods will be re-exported (returned) at a later date. Temporary import often has a zero rate and must be included in the VAT return under code 85. If a good changes from temporary import to permanent import, for example, when the good is sold in Norway, the customs declaration must be changed to ordinary import. You can do this by contacting the shipping agent or Norwegian Customs. Learn more.
2. Re-imported goods are usually also zero rated. This must be included in the customs declaration. You must reconcile this with the declaration overview. Re-import should be included in the VAT return under code 85. Learn more.

Imports of Low Consignment Goods

According to the VOEC Scheme (please refer to the corresponding section in this manual), foreign suppliers selling low value goods valued between NOK 0-3,000  to Norwegian customers, i.e., B2C sales, must collect Norwegian VAT at the point of sale and report and pay the VAT to Norwegian tax authorities. Import VAT is reverse charged in the VOEC VAT return. So the end customer does not need to pay import VAT or handle customs declaration, instead, the foreign supplier must register in this special scheme.

Learn more about imports under VOEC scheme.

Reverse Charge in Norway

Reverse charge by non-established suppliers in Norway

Norway has introduced reverse charge on certain supplies of remotely supplied services supplied from abroad – ie., the supplier of those services is not established in Norway.

Remotely supplied services, or Fjernleverbare tjenester, are services that may be delivered from a remote location, and which would have been subject to VAT if sold by a Norwegian business. Electronic services that are delivered over the internet, are impossible to deliver in the absence of information technology and are of a nature which renders their supply essentially automated are also considered remotely deliverable services.

• Supplier conditions: not established in Norway.
• Customer conditions: taxable person established in Norway (place of business, permanent establishment or registered representative in the country).
• Scope: Remotely deliverable services are services capable of delivery from a remote location. Some examples include: Marketing ads, software or software licenses, development of websites and software, renting domains and websites, legal services, architect services, consultant services, accounting services.

Learn more.

Reverse charge on specific goods in Norway

Domestic reverse charge applies to supplies of industrial and investment gold (i.e. gold of a purity equal to or greater than 325/1000), i.e., based on weight and fineness, to a business or public sector enterprise, irrespective on where the supplier is established. Learn more.

VAT Returns and SAF-T in Norway

A new VAT return was introduced in 2022, based on standard Norwegian SAF-T VAT codes. Check the official information about VAT returns in Norway, including the VAT return codes.

All taxpayers must submit their VAT returns electronically via Altinn portal. Non-established taxpayers must seek assistance from locally established firms to submit the VAT returns.

The VAT return can either be submitted digitally, directly from the accounting system (“system-to-system” via API technology), or manually via the Norwegian tax authority’s portal, as well as in XML format.

Frequency of filing

The standard frequency of filing for periodic VAT returns in Norway is bi-monthly, i.e., every other month.

However, upon request, tax authorities may authorize annual reporting frequency for small enterprises meeting certain conditions. Also, farmers and fishermen must submit the VAT returns on an annual basis.

Finally, e-commerce suppliers under the VOEC scheme must submit specific returns quarterly.

Due date of VAT returns in Norway

The VAT returns in Norway must be submitted according to the following deadlines:

• Bi-monthly: One month and 10 days following the end of the reporting period
• Annual: By 10th March of the following year.
• VOEC scheme: the 20th day of the month following the end of the quarter.

If the deadline is on a Saturday, Sunday, or public holiday, the deadline for submission and payment is the next working day.

Find here the official tax calendar for VAT compliance obligations in Norway.

VAT payments in Norway

You must pay VAT at the same time as you submit the tax return for VAT. When you have submitted the tax return for VAT, you will find the payment information via Altinn. The payment reference is the KID number.

You must pay VAT in Norwegian kroner (NOK). The payment must be made to the tax authority’s bank account by the due date of the submitted VAT return. All payments of VAT due must be made by bank transfer.

The bank accounts to make the payments are the following:

If you have a KID number for making the payment:

IBAN no.: NO5876940518888

BIC/SWIFT: DNBANOKK

If you do not have a KID number for making the payment:

IBAN no.: NO2476940517075

Recipient data: Skatteetaten Merverdiavgiftsregnskapet. Postboks 38. 4891 Grimstad

Find VAT payment information.

VAT Refunds in the Norwegian VAT Return

The excess of input VAT is automatically refunded to the taxpayer within three weeks approximately. This is, when a taxable person declares more VAT deductible – e.g., due to purchases-, than VAT collected from sales, the difference is a VAT credit which shall be reimbursed to the taxpayer. The tax authorities will add up the corresponding interest in case of late repayment.

You can only claim VAT refund on purchases where the seller is registered in the VAT register and where the invoice contains the seller´s organisation number and the letters MVA.

Before the VAT refund, the tax authorities may carry out a verification of the information reported in the VAT return, requesting copies of invoices.

Check here for more details about VAT refunds. Also, learn more about interest for late payments.

Nil and Corrective VAT Returns in Norway

A nil VAT return needs to be submitted even if there are no transactions to be reported for that period.  

The tax authorities will only consider the latest VAT return submitted. If you want to make corrections to a VAT return already submitted, then you must therefore submit a new VAT return. You can make changes within 3 years after the original deadline.

VAT penalties in Norway

Interest is applied if you do not pay VAT on time. It is charged on a daily basis from the date the VAT payment is due until you pay the amount outstanding. From 1 January 2024, the interest on arrears rate is 12.5%.

Also, if you do not file VAT return in time, the Norwegian tax authorities will normally send you a letter including a new deadline. If the new deadline is not met, then a enforcement penalty is imposed: the rate is half a court fee per day (the court fee is NOK 1,243 per day). The maximum limit is 50 court fees, meaning a maximum amount of NOK 62,150.

Learn more about interest for late payments and enforcement fines. Finally, find more information about appealing enforcement fines.

VAT Returns for Reverse Charge

Sole traders and public enterprises that are not registered in the VAT Register must submit the VAT return for reverse charge if the enterprise made purchases under reverse charge during a reporting period.

Find below the scenarios where reverse charge applies on purchases and this special VAT return is due:

• Services purchased from abroad, Svalbard or Jan Mayen for more than NOK 2,000 (without VAT).
• Domestic purchases of emission allowances for more than NOK 2,000 (without VAT).
• Domestic purchases of gold for more than NOK 2,000 (without VAT).

Learn more about VAT returns for reverse charge; you need to select the return type: VAT return for reverse tax liability.

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VAT refunds in Norway

These are the key considerations about the VAT refund procedure for foreign businesses in Norway:

• You must submit Form RF 1032 together with the supporting documents: copy of invoices, export documents, VAT certificate from country of establishment, PoA (in case of applying through an agent).
• You should complete the form electronically before you print out, sign and send the original copy to the tax office by post. If you complete the form by hand, you must use block letters. The form must be completed in Norwegian, Swedish, Danish, or English.
• Refund amounts: For refund periods less than a year, the refund amount being applied must be at least NOK 5,000. The minimum amount to be claimed is NOK 500 when the application concerns the calendar year or the remainder of the calendar year.
• Deadline: the application must be submitted no later than 30 September of the following calendar year.
• Contact email address is: VATrefund@skatteetaten.no

The VAT refund claim pack must be sent to the following address:

The Norwegian Tax Administration

VAT Refunds

P.O. Box 103

NO - 1501 Moss

Norway

Businesses that send the form by courier shall use this address:

The Norwegian Tax Administration

VAT Refunds

Bernt Ankers gate 17

1534 Moss

Norway

The following conditions must be met for the VAT refund:

• The VAT credit relates to purchase of goods or services in Norway or the import of goods into Norway, and the goods or services are intended for business purposes.
• The supply outside Norway would have entailed a liability to register or an entitlement to voluntary registration if it had taken place inside Norway, and
• The VAT would have been deductible if the enterprise had been registered in Norway. Input VAT is not refundable for goods that are acquired or imported to Norway and sold here

You will find here the official information published by the tax authorities concerning VAT refund claims made by foreign companies.

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