VAT

VAT

Value added tax (VAT or MVA in Norwegian) is the tax which consumers pay on almost all goods and services. Your business collects this tax from your customers on behalf of the government. VAT on goods and services sold is called “output VAT”. You are also entitled to deductions for VAT for most goods and services that you purchase for your business, and this is known as input VAT which is usually tax deductible.

Section 5 of the VAT Act specifies which goods and services are VAT exempt. If you are in doubt, contact the Norwegian Tax Administration (Skatteetaten), which is responsible for collecting VAT, for clarification. VAT is paid six times a year, but companies with turnover liable for VAT of less than NOK 1 million can apply to pay VAT once a year.

You are required to register with the VAT Register when turnover exceeds NOK 50,000 within a 12-month period. You cannot add VAT on the sale of your products and services until you have registered your enterprise in the VAT Register. If the company is not registered in the VAT Register, all invoices do not contain VAT and there is no deduction given for input VAT.

VAT rates in Norway:

• 25% – Products and services

• 15% – Food

• 12% – Transport