VAT Registration in Norway

Norway’s VAT (merverdiavgift, MVA) system applies to most goods and services, and compliance is critical for avoiding penalties. This guide breaks down VAT registration, compliance, and deregistration in simple, actionable steps to help you stay compliant and avoid penalties.

Who required to VAT registration in Norway?

Businesses and organisations with taxable supplies exceeding NOK 50,000 within a 12-month period are required to register for VAT.

Domestic Businesses:

    • Mandatory if your annual taxable turnover exceeds NOK 50,000 (approx. €4,300).
    • Example: A Norwegian bakery selling pastries online crosses NOK 50,000 in sales—registration is required.

Foreign Businesses:

    • Selling Goods: If you store inventory in Norway (e.g., Amazon FBA), you must register.
    • Digital Services: Selling streaming, SaaS, or apps to Norwegian consumers? Use the VOEC scheme (simplified registration) if annual sales exceed NOK 50,000.
    • B2B Services: Reverse charge applies (Norwegian client handles VAT).

VAT filing and payment

Norway applies three VAT rates:

  • Standard rate: 25% Most goods and services (electronics, clothing, consulting).
  • Reduced rates: 15% (Groceries, non-alcoholic beverages), 12% (Bus tickets, cinema tickets), 0% (Exported goods, international shipping).

Filing Frequency

  • Monthly: Turnover > NOK 1 million.
  • Quarterly: Turnover between NOK 50,000–1 million.
  • Semi-Annual: Optional for turnover < NOK 50,000.

Deadlines

  • Monthly/Quarterly returns: 14 days after period ends.
  • Semi-Annual: 14 days after June 30 or December 31.

How to file Norway VAT return?

  1. Electronic Submission:
    • Use Norway’s Altinn portal (requires a Norwegian ID or EU/EEA eID).
    • Non-residents may need a fiscal representative to file on their behalf.

VAT Return Contents:

      • Total sales/purchases in Norway.
      • Output VAT collected from customers.
      • Input VAT reclaimable on business expenses.

 Reverse Charge Mechanism:

    • For B2B services to EU/EEA clients, the recipient accounts for VAT.
    • You must still report these transactions in your return (zero-rated).

Penalties:

      • Late filing: Up to NOK 6,000.
      • Late payment: 9.6% annual interest + 20% penalty for persistent delays.

VAT deregistration: when and how to exit

Businesses should apply for VAT deregistration if they cease trading or if taxable turnover falls below the registration threshold.

Deregistration process:

  1. Application Submission: Submit a deregistration application to the Norwegian Tax Administration.
  2. Final VAT Return: File a final VAT return up to the deregistration date, ensuring all VAT liabilities are settled.