Key takeaways
- Understand and comply with Norwegian VAT rates, including the standard rate of 25%, reduced rate of 15%, and low rate of 12%.
- Businesses must register for VAT when their annual turnover exceeds NOK 50,000, and ensure accurate reporting to qualify for any applicable refunds.
- Be aware of associated compliance requirements such as invoicing regulations in order to remain compliant with changing regulations and potentially receive a refund.
In short: Norway has a standard VAT rate of 25%, a reduced rate of 15% for food, and a low rate of 12% for tourism, culture, and transport. Books and newspapers are zero-rated. Businesses must register for Norwegian VAT once annual turnover exceeds NOK 50,000, and most file VAT returns every two months.
If you do business in Norway, you need to understand the Norway VAT rates and what they mean for you. Rates range from zero to the standard 25% rate, and some goods and services are exempt. Knowing the details helps you stay compliant and avoid penalties. This guide explains Norwegian VAT rates, registration, and compliance, giving you a solid base for doing business in this beautiful Nordic country.
What are the VAT rates in Norway?
Norway has a standard VAT rate of 25%, a reduced rate of 15%, a low rate of 12%, and a zero rate. Value Added Tax (VAT) in Norway is a consumption tax on goods and services. The Norwegian Tax Administration manages and collects it. Read more in our guide: VAT Rate in Ecuador Set to Rise to 15%.
If your business is registered for VAT, you must charge Norwegian VAT on your goods and services. You need to know the different rates. Getting them wrong can lead to fines and other penalties. With several rates and various exemptions, it is vital to know how each one applies to your business.
Standard VAT rate: 25%
The standard VAT rate in Norway is 25%. It applies to most goods and services, such as electronics and clothing.
Reduced VAT rate: 15%
Norway's reduced VAT rate of 15% applies to specific items. These include food products, drinks, food supplements, and non-prescription medicines.
Low VAT rate: 12%
Norway's low VAT rate of 12% applies to certain goods and services linked to tourism, culture, and transport. Sectors that benefit include accommodation services, amusement parks, and sporting events.
Zero VAT rate and VAT exemptions
In Norway, healthcare, education, and financial services are among the goods and services that are exempt from VAT. Norway also has a 0% VAT rate, which covers books, e-books, and newspapers. If you supply zero-rated or VAT-exempt goods and services, you must still report them on your VAT return.
How do you register for VAT in Norway?
You register for VAT in Norway once your annual turnover exceeds NOK 50,000. Knowing when and how to register is critical if you do business in the country. Here are the key steps:
- Check whether your annual turnover exceeds NOK 50,000.
- If it does, you must register for VAT.
- Once registered, you'll get a Norwegian VAT registration number.
When to register for VAT
You must register for VAT in Norway when your annual turnover exceeds NOK 50,000 over a twelve-month period. Different rules may apply to sales to Norway and sales in Norway, so keep the two apart when you check whether you need to register. For a full country overview, see our Norway VAT manual.
Once your business becomes liable for VAT in Norway, you must complete VAT registration within 30 days.
Online VAT registration process
Norway has a simple online VAT registration process on the Norwegian Tax Administration’s website. You fill in the VAT registration form, provide the required documents, and submit the application online. Once registered, you'll receive a Norwegian VAT registration number.
VAT obligations
Businesses operating in Norway have several VAT obligations, including:
- Charging the right VAT rate on their goods and services.
- Reporting these transactions.
- Shifting the duty to account for VAT from the seller to the buyer when the reverse charge mechanism applies (certain B2B transactions).
For B2C sales, online merchants must collect VAT from customers and can use the VOEC scheme for low-value goods. Understanding these obligations helps you stay compliant and avoid penalties.
How do VAT returns and reporting work in Norway?
Most businesses in Norway file VAT returns every two months, and the returns must be accurate and on time.
Filing frequency
Norwegian VAT returns are filed bi-monthly by most businesses. However, businesses with an annual turnover of less than NOK 1 million can choose to file annually.
VAT returns are due one month and ten days after the end of the reporting period. Meeting these deadlines is crucial to avoid penalties and interest charges.
Submission process
In Norway, you must submit VAT returns electronically. You can do this easily through the Altinn portal. The platform makes submission simpler and helps keep your reporting accurate and efficient.
The Norwegian Tax Administration gives guidance on using the Altinn platform. It also explains the required e-invoice standards, such as the EN 16931, EHF, and Peppol BIS formats.
Sales and purchase list reporting
Norway has planned to introduce transaction-level VAT reporting. Businesses would then report individual purchase and sales transactions. The aim is to make VAT reporting more accurate and efficient and reduce incorrect returns.
Businesses should prepare for these possible changes and make sure their accounting systems can handle the new reporting requirements.
How does VAT apply to importing and exporting goods in Norway?
Imports into Norway are charged import VAT, while exports from Norway are usually free from VAT. Understanding these VAT rules is essential for accurate reporting and compliance. Different VAT rates apply depending on the type of goods, so you must know them to account for VAT correctly. For a closer look, see Understanding Denmark VAT Rates and Compliance.
VAT rates can vary a lot, so check the rate that applies to each transaction.
Import VAT
Import VAT in Norway depends on the type of goods you import. It usually matches the standard, reduced, or low rate in the country. The importer must work out and pay the VAT on imported goods. Failing to do so can lead to large financial penalties and interest charges.
Export VAT
Exporting goods from Norway is usually free from VAT. This applies when the goods are sent from Norway to a place outside Norway’s VAT area. To claim the zero rate, suppliers must keep documents that prove the export. Examples include sales contracts, transport documents, and customs declarations.
Keep these documents for at least five years. You must show them to the Norwegian tax authorities if they ask.
How does VAT work for cross-border services and ecommerce in Norway?
The VAT rules for cross-border services and ecommerce in Norway depend on where the customer is. In some cases, Norwegian businesses do not need to charge Norwegian VAT.
If you make cross-border sales, you need to understand these rules to report accurately and stay compliant.
B2B Transactions
For B2B transactions in Norway, the reverse charge mechanism applies. In cross-border transactions, it shifts the duty to account for VAT from the seller to the buyer. This makes VAT simpler for businesses and cuts the admin of charging VAT on cross-border services.
With the reverse charge mechanism, the seller does not need to register for VAT in the buyer's country.
B2C Transactions
For B2C transactions, online merchants must collect VAT from customers. The VOEC scheme simplifies this for low-value goods. As of January 1, 2023, Norway expanded its VAT rules to include all “remotely deliverable services” from foreign sources to consumers in the Norwegian VAT area. This increased their VAT liability.
Non-resident providers of remotely supplied non-digital services must register and collect VAT on B2C sales. This shows why understanding VAT rules for ecommerce matters.
What are the invoicing and e-invoicing requirements in Norway?
Invoices in Norway must contain specific information, and e-invoices must follow set standards such as EN 16931, EHF, and Peppol BIS formats. Proper invoicing helps you report accurately and comply with VAT rules.
These standards are designed to make sure e-invoices are secure, complete, and accurate.
Invoice content
Invoices issued in Norway must include the following information:
- Date of issuance
- Unique invoice number
- Supplier and customer information
- Description of the goods or services provided
- Quantity
- Price
- VAT rate
- Total amount due
Including all the required information on your invoices supports accurate reporting and compliance with Norwegian VAT rules.
E-invoice standards
E-invoice standards in Norway include EN 16931, EHF, and Peppol BIS formats. Suppliers to public bodies must send e-invoices in the European Peppol BIS Billing 3.0 format. The EHF format is recommended for B2B and B2G invoices.
How do VAT refunds work in Norway?
A VAT-registered business in Norway may be able to reclaim input VAT on goods and services it buys for the business. Understanding the VAT refund process helps you get the most from it.
The refund process usually takes six months to complete. The cut-off date for submitting the annual VAT return is January 31.
Conclusion
If you sell to customers in Norway, you need a clear understanding of Norwegian VAT, from rates and registration to invoicing and refunds. Staying informed and compliant reduces your risk of fines and other penalties. It also helps you build a successful and profitable business in this thriving Nordic market.
Do you need help with your VAT compliance? Book a free call with one of our VAT experts to find bespoke solutions for your business, optimize your VAT costs, and reach millions of new potential customers.
How Taxually handles this
Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.
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Frequently asked questions
What is the VAT rate in Norway?
The standard VAT rate in Norway is 25%. This rate applies to most goods and services that are not covered by reduced VAT rates.
However, there are some exceptions.
Is VAT 12% in Norway?
While the standard rate for VAT in Norway is 25%, there is a low rate of 12% applied to specific goods and services.
Is Norway in the EU VAT system?
No, Norway is not part of the EU VAT system. However, it does follow most of the rules and regulations set by the EU VAT Directive.
When do businesses need to register for VAT in Norway?
Businesses in Norway are required to register for VAT if their annual turnover exceeds NOK 50,000.
