Norwegian VAT rates and VAT compliance

The standard VAT rate in Norway is 25%.

Norway has temporarily cut VAT to help support businesses and consumers during the Coronavirus pandemic crisis.

In Norway it is a requirement for the VAT Representative to raise and issue all invoices on behalf of the non-resident trader, indicating both the trader’s and the representative’s details.

There are detailed rules controlling the recording and processing of Norwegian transactions. These include guidelines on:

• Norwegian invoice requirements;
• Foreign currency reporting and translation;
• Credit notes and corrections; and
• What accounting records must be maintained.

Periodic VAT returns must be submitted by all companies with a Norwegian VAT number, detailing all taxable supplies (sales) and inputs (costs). Generally, returns are submitted bi-monthly in Norway. VAT returns in Norway are due one month and ten days after the reporting period.

Payments of any associated VAT liability must be paid by the return deadline. In the case of a tax credit (where the VAT incurred by the company exceeds the VAT charged on its sales in the reporting period), approved credits will be paid over to the company within three weeks of the return deadline.

It is possible for foreign businesses to apply for a VAT refund in Norway, along the lines of the European Union’s 8th & 13th VAT Directives. The following conditions should be fulfilled for a foreign business to recover VAT refunds in Norway:

• The company is not liable to be VAT registered in Norway;
• The VAT is concerned with the applicant’s business activities; and
• Original invoices showing Norwegian VAT can be provided