VAT GUIDE IN NORWAY
NORWEGIAN VAT GUIDE FOR BUSINESSES
VAT, known in Norway as Merverdiavgift (MVA), is a general consumption tax applied to most goods and services sold or used within the country. The VAT system in Norway is designed to tax the value added at each stage of production and distribution, with businesses collecting VAT on sales (output tax) and deducting VAT paid on purchases (input tax).
Businesses and individuals engaged in economic activities exceeding the registration threshold must register with the Norwegian VAT authorities. Special rules apply to foreign companies supplying goods or services in Norway, including remote sellers and providers of digital services.
Norway’s VAT system also covers imports, ensuring that goods brought into the country are taxed in the same way as domestically supplied products. Compliance involves timely registration, proper invoicing, accurate record-keeping, and submission of periodic VAT returns.
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VAT Rates
Who Needs to Register for VAT?
A taxable person in Norway is any business or individual that carries out taxable supplies of goods or services in the course of business activities. The VAT registration threshold is NOK 50,000 (approximately EUR 4,250) within a 12-month period. For charitable organizations and certain nonprofits, this threshold is higher at NOK 140,000 (approximately EUR 11,875). Specific rules also apply to certain partnerships, trading companies, and corporations.
The party listed as the importer of record (the recipient of goods) in the customs declaration is responsible for paying import VAT.
A “non-established business” is one without a fixed establishment in Norway. Such businesses must register for VAT if their taxable supplies of goods or services in Norway exceed the registration threshold. Nonresident foreign transporters providing only international, zero-rated transport services may either register for VAT and claim input tax refunds through VAT returns or remain unregistered and request refunds via the VAT refund scheme.
Non-established businesses required to register for VAT must appoint a local tax representative unless they have a business presence or registered office in Norway. However, this local representative requirement is waived for Norwegian-registered foreign enterprises (NUFs) domiciled in an EEA country that has a VAT collection assistance agreement with Norway. This exemption applies to enterprises from countries including Austria, Belgium, Denmark, France, Germany, Italy, the UK, and several others. The same waiver applies to businesses based in the United Kingdom under similar conditions.
VAT Obligations
VAT invoices
Generally, the supplier is required to issue invoices and credit notes for all sales and exports. A Norwegian taxable person must typically provide an invoice that includes VAT for all taxable supplies. These invoices serve as proof for Norwegian taxable persons to claim input tax and for non-established businesses to request VAT refunds.
Simplified VAT invoices
In Norway, retailers can use simplified VAT invoices for cash sales to private consumers for personal use. These transactions can be documented with a cash register receipt without specifying the buyer’s details. The purchase amount must not exceed NOK40,000 (approx. EUR3,400) including VAT, and payment must not be made in cash. If the amount exceeds this limit or payment is made in cash, the invoice must include the buyer’s name and address.
Records
Records must be kept as long as needed for verification, secured against alteration or loss, and stored in a readable format.
Primary documentation (e.g., invoices, bank vouchers) supports bookkeeping, while secondary documentation (e.g., contracts, order slips) provides additional relevant information.
Records can generally be stored outside Norway, but usually must be kept in Norway unless required by foreign law or stored in Nordic countries with notification to tax authorities. Storage outside Nordic countries requires approval.
Retention periods: primary documents for 5 years, secondary for 3.5 years, import documents for 10 years, and special rules apply for capital goods documentation (up to 15 years).
Electronic archiving is permitted, with accessibility requirements for at least 3.5 years after the financial year, except for smaller entities (turnover under NOK5 million) and liquidated companies (6 months retention post-liquidation).
VAT Deadlines
Periodic returns:
Generally, Norwegian taxable persons submit VAT returns every two months. However, farmers and fishermen are required to file annually. Businesses with a taxable turnover below NOK 1 million may choose to file annual returns. VAT groups file a single joint VAT return on a bimonthly basis. Import VAT is also declared through the VAT return.
To improve cash flow, businesses that regularly receive VAT refunds can apply to file returns over shorter periods. Taxable persons need to contact the relevant VAT office to register for annual returns or to get approval for shorter return periods.
For bimonthly VAT returns, filings must be submitted within 1 month and 10 days after the end of the VAT period.
Periodic payments:
For bimonthly returns, the VAT due must be paid in full within 1 month and 10 days following the end of the reporting period. For example, the VAT return for January and February must be submitted and paid by April 10. Payments must be made in Norwegian kroner (NOK) by bank transfer to the tax authority’s account by the return deadline.
VAT Refund
Non-established businesses not registered for VAT in Norway can recover input VAT incurred. Norway refunds VAT to such businesses without applying reciprocity, meaning refunds are available regardless of the claimant’s country. Foreign businesses providing transport services to/from Norway aren’t required to register but can still claim VAT refunds.
To claim a refund, the applicant must submit:
- Application Form RF 1032
- Original VAT invoices and import documents (or printouts if using electronic accounting)
- Power of attorney if using a third party
- A valid certificate of taxable status from their home tax authority
- Explanation if goods are in Norway at claim time
Applications must be submitted by September 30 following the claim year, in Norwegian, Danish, English, or Swedish. The claim period ranges from a quarter to a full year, with minimum claim amounts of NOK 5,000 for a quarter and NOK 500 for an annual claim.
Penalties for non-compliance
Penalties for late registration
Any entity that intentionally or negligently fails to register for VAT may face fines or imprisonment. Additionally, penalties and interest can be charged if late registration results in delayed VAT returns or late VAT payments.
Penalties for late payments and filings
Interest is charged on overdue VAT reports or when obvious errors are made. The interest rate, set twice yearly by the Ministry of Finance, was 11.75% annually as of July 1, 2023. Taxable persons who intentionally or negligently violate VAT regulations may face an additional penalty of up to 60% of the tax owed for that period, though the typical penalty is 20%.
Penalties for errors
Penalties for errors are the same as those for late payments and filings.
Penalties for failure to notify
Late or failure to notify the tax authorities of changes to VAT registration details can also lead to penalties (see the section on Changes to VAT registration details).
Penalties for fraud
Penalties for fraud align with those for late payments and filings. In cases of criminal fraud, fines and imprisonment for up to two years may be imposed.
Common VAT Terms
- VAT (Merverdiavgift)
- Taxable person
- VAT registration threshold
- Input tax
- Output tax
- VAT return
- VAT group
- Reverse charge
- Import VAT
- VAT refund
- Taxable supply
- Non-established business
- Tax representative
- Simplified invoice
- Electronic filing
- VAT liability
- Deductible VAT
- VAT adjustment
- Fiscal year
- VAT period
- Intrastat
- EC Sales List (ESL)
