When carrying out business activities in Norway, it is necessary to comply with certain minimum requirements. This is to ensure compliance with the Norwegian law. 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 payable on all sales of goods and services, except those that have been specifically exempted. Foreign businesses that start up business activities, liable to VAT in Norway, must calculate and pay VAT in the same way as Norwegian businesses.
Enterprises selling goods or services exceeding NOK 50,000 over a twelve-month period, are obliged to register for VAT in Norway and add VAT onto the invoices. On the other hand, a VAT registered entity is entitled to a refund of the input VAT on its own purchases of goods and services used in the business. The VAT is reported on VAT returns. These VAT returns are normally filed bi-monthly.
Foreign businesses selling goods and services in Norway without having a place of business or a place of residence in Norway must, as a main rule, be registered through a VAT representative.
However, this does not apply to businesses established in countries who have entered into an agreement with Norway on mutual recovery of VAT and tax claims. This applies to businesses in Belgium, Denmark, Finland, France, Iceland, Italy, Malta, the Netherlands, Poand, Portugal, Slovenia, Spain, Great Britain, Sweden, Germany, Czech Republic, Bulgaria, Estonia, Faroe Islands, Greenland, Greece, Croatia, Cyprus, Latvia, Lithuania, Romania, Slovakia and Hungary.
The business will have the rights and obligations that follow from ordinary registration in the VAT Register. For businesses that need to register through a VAT representative, the representative must have a place of residence or a place of business in Norway. Both, the foreign business and the representative, must sign the Coordinated Registration Notification in order to have the business registered. The VAT representative is obliged to ensure that the VAT handling is correct and is responsible for filing the VAT return.
Magnus Legal acts as a VAT representative for foreign companies with VAT liable activity in Norway.
VAT registered businesses calculate VAT on imported goods and report it on their VAT return. VAT is deducted in the same VAT return. Thus, there is no VAT payable upon importation provided the goods are for use in the VAT liable business.
For non-registered businesses, the import VAT is payable at the time of importation to Norway
The VAT is calculated on the transactional value of the goods.
Magnus Legal holds considerable knowledge of Norwegian and foreign VAT/ sales tax legislation. Foreign companies in Norway may be obligated to fulfil numerous requirements related to VAT on their activities in Norway.
Furthermore, foreign companies doing business in Norway and Norwegian companies doing business abroad both face issues related to customs and VAT on cross border activities.
The standard VAT rate is 25%. A VAT rate of 15% is levied on the sale of food.
The rate is 12% for passenger transport, letting of rooms by hotels or camping businesses etc., and commercial letting of holiday homes.