Complete Guide to Norway VAT Rates 2024
Complete Guide to Norway VAT Rates 2024: What Businesses and Expats Must Know
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Norway's Value Added Tax (VAT), locally known as merverdiavgift or MVA, underwent key changes in January 2024 that impact both residents and foreign entities. As a senior tax consultant with 8 years of experience advising Nordic businesses, I'll break down everything you need to navigate the updated system.
1. 2024 VAT Rates at a Glance
Norway follows a three-tier VAT structure. Here’s what changed this year:
| Category | 2023 Rate | 2024 Rate | Applicability |
|---|---|---|---|
| Standard Rate | 25% | 25% | Most goods/services |
| Reduced Rate | 15% | 15% | Food, beverages |
| Low Rate | 12% | 12% → 10% | Passenger transport, hotels |
Key Change: The low rate dropped 2% for tourism-related services to boost post-pandemic recovery.
2. Sector-Specific Impacts
a) E-commerce Businesses
Digital services to Norwegian consumers now require VAT registration if annual turnover exceeds NOK 50,000 (≈€4,200).
Pro Tip: Use VOEC (VAT on E-commerce) scheme for simplified compliance.
b) Fishing Industry
VAT exemption removed on deep-sea fishing equipment (now 25%)
Bait and small boat fuel remain at 15%
c) Electric Vehicles
VAT rebate continues for EVs under NOK 500,000
New: Charging station installations qualify for 10% rate
3. VAT Calculation: Real-World Example
Let’s say Oslo-based Fjord Tours AS sells a 3-day package for NOK 8,000:
Base Price: 8,000 NOK
VAT (10%): 800 NOK
Total: 8,800 NOK
Why 10%? Hotel+transport combo falls under the revised low rate.
4. Common Compliance Mistakes
Incorrect Invoice Formatting
Must include:
"MVA" before VAT number
Buyer’s organization number for B2B transactions
Filing Deadlines
Monthly: Turnover >NOK 1M
Quarterly: Turnover <NOK 1M
Penalty: 0.05% daily interest on late payments
5. Recent Legal Updates
Case Study: Bergen vs. Skatteetaten (2023)
Ruling: VAT applicable on SaaS tools with Norwegian IP logins
Effective: March 1, 2024
EU Alignment: Norway now mirrors EU VAT directives on:
Digital reporting requirements
Marketplace facilitator liability
6. Expert Tips for Expats
Keep digital receipts for VAT refunds on:
Work-related electronics
Professional training courses
Avoid: Claiming VAT on alcohol/tobacco – strict exemptions apply
FAQs
Q1. Is VAT refundable for non-residents?
Yes, but only for business expenses. Use the Norwegian Tax Administration’s portal for claims.
Q2. How does VAT apply to Svalbard?
Special rules: 8% general rate, no VAT on essential goods.
Final Thoughts
The 2024 revisions aim to balance economic growth with sustainable revenue. For precise calculations tailored to your situation, use our Norway VAT Calculator – updated hourly with latest rates.
Author Bio:
Lars Johansen is a certified Nordic tax advisor and member of the Oslo Chamber of Commerce. He has filed over 1,200 VAT returns since 2016.
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