Norway hikes transport & hotel VAT 2016
- European News
- 13 October 2015 | Richard Asquith
Norway has announced an increase in its reduced 8% VAT rate to 10% from 1 January 2016. The rise will help fund a cut in the corporate income tax from 27% to 22%.
Norway’s lowest reduced VAT rate applies to hotel and holiday home accommodation, public transport, cinema entrance and the state TV licence. Norway also has reduced VAT rates of 11.11% and 15% (foods). The standard VAT rate in Norway is 25%.
The country has also approved a previously announced zero-rating for e-newspapers and e-journals.
The corporation tax cut will come in two stages. Initially the rate will drop to 25% from the start of 2016. It will then fall to 22% in 2018.