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Norway budget announces VAT compliance changes

  • May 20, 2014 | Richard Asquith

Norway budget announces VAT compliance changes

The Norwegian VAT regime was changed slightly last week with the 2014 Budget, announced on 14 May 2014.

The VAT changes included:

Electronic cars and batteries are to be zero rated following the approval of the European Free Trade Association’s review committee. Norway is a member of EFTA alongside Iceland and the 28 member states of the EU. The VAT rate on these goods had previously been the 25% standard VAT rate

Improvements to the process for applying for VAT opt into VAT on rented property. Generally, the sale or renting of immovable property is VAT exempt. For commercial renters this can create a large cash drain as they buy in many services that come with a VAT charge which they cannot recover. The opt to tax gives them to opportunity to charge VAT (their business customers will be able to recover this, so there will be no cash implications for them) and recover the VAT suffered.

There were also continued reductions in duties on electricity, and new cuts to on-board alcohol customs duties on international flights or ferries.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.