The first question that foreign enterprises must consider, is whether their business is performed to Norway, or in fact in Norway. Only the latter trigger registration and reporting responsibilities. All entities must register with the Central Coordinating Register for Legal Entities in order to obtain a Norwegian organization number. If the activities are VAT liable, the entity must also register with the VAT Register.

VAT is an indirect tax on the consumption of goods and services. As a rule, VAT is calculated at all stages of the supply chain and on the import of goods and services from abroad. The final consumer, who is not registered for VAT, absorbs VAT as part of the purchase price. For businesses and organisations that are required to pay VAT in Norway, VAT is generally not an expense. As a business, you must pay VAT on your purchases, but you will usually be entitled to a deduction for the VAT.

The rules in Norway are different from the rules of the EU and other regions. The VAT regulation is detailed and quite complex. In the event of contravention of the VAT Act, a surtax may be imposed. In serious cases the surtax may be up to 40 %.

Magnus Legal’s core team comprises experienced lawyers within VAT. We are prepared to give you first class advice. Our lawyers focus on the practical implications for our clients of VAT legislation.