Norway is not a member of the European Union but is a part of the European Economic Area. The country trades in the Norwegian Krone.
VAT rates in Norway
The standard rate of VAT is 25%, and reduced rates of 8% and 15% are available.
VAT registration in Norway
The VAT registration limit in Norway is NOK 50,000 for both established and non-established businesses.
There is no limit on distance sales.
The format for a VAT identification number is: 123 456 789 MVA. Every company must hold a number like this in order for accurate taxation.
VAT returns must be submitted bi-monthly and annual returns are not required.
Are there any Intrastat thresholds in Norway?
No, this is not applicable in Norway.
VAT recovery in Norway
Is VAT recovery permitted for non-established non-EU businesses?
Yes, allows VAT recovery for all non-EU countries.
Are there any non-VAT recoverable expenses?
Yes, recovery of input tax is restricted on certain items, i.e. business entertainment and cars.
Reverse charge applies when a business purchases services from a remote location instead of within Norway.
Requirements and regulations in Norway
A non-established business must appoint a Norwegian tax representative if they do not have a registered office, in order to register for VAT in Norway.
Use and enjoyment rules do not apply in Norway.
The period of VAT recovery by tax authorities has a timescale of 10 years.
Similarly, there is a period of 3 years for VAT deductions and refunds.
Please contact us for further information about paying taxes in Norway, and a member of our team will be happy to help you.