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Home > Norway VAT (MVA) System – Complete Original Guide

Norway VAT (MVA) System – Complete Original Guide

Norway VAT System

Norway, though not a member of the European Union, has a robust and modern Value Added Tax system, known locally as Merverdiav gift (MVA). It plays a crucial role in funding public services and maintaining a strong welfare model. In this article, we’ll explore Norway’s VAT rates, registration rules, invoice norms, filing system, and how foreign businesses should comply.

🔢 VAT Rates in Norway

Norway uses a tiered VAT system to balance revenue collection with affordability across essential and luxury goods:

Standard Rate – 25%
This applies to most goods and services such as electronics, vehicles, consultancy, clothes, etc.

Reduced Rate – 15%
Used mainly for basic food items and beverages.

Lower Rate – 12%
Applied to services like public transport, hotel stays, movies, events, and cultural access.

Zero Rate – 0%
Used for exports, books, newspapers, and international shipping or aviation services.

This structure helps ensure affordability in daily life while collecting tax on luxury or commercial activity.

🏢 Who Should Register for VAT in Norway?

You must register for MVA (VAT) in Norway if:
  • You are a Norwegian business with sales above NOK 50,000 in a 12-month period.
  • You are a foreign company selling goods/services in Norway.
  • You provide digital services to Norwegian customers (like software, subscriptions, apps, etc.).
  • You import goods into Norway for sale.
Once you cross the threshold, VAT registration is mandatory, and the business is assigned a unique number with "MVA" added at the end.

Foreign Businesses:
Foreign entities without a local office must appoint a VAT representative in Norway to handle compliance.

📄 VAT Registration Process in Norway

  • Get an Organization Number: Register with the Brønnøysund Register Centre.
  • Apply for VAT: Submit a VAT registration application through the Norwegian Tax Administration.
  • Receive Confirmation: Once approved, the MVA number becomes active, and VAT collection starts.
This number must appear on all official invoices, returns, and transactions.

🧾 What Should a VAT Invoice Contain?

All invoices issued under Norway’s VAT system must include:
  • Invoice number and date
  • Seller’s name, address, and MVA number
  • Buyer’s information
  • Description of goods/services
  • Net amount, VAT rate, and total VAT
  • Final payable amount (gross total)
Invoices must be issued in Norwegian currency (NOK) and maintained for a minimum of 5 years for inspection.

🗓️ VAT Filing and Deadlines

In Norway, VAT returns are usually filed every two months (bimonthly). The standard periods are:
  • Jan–Feb: due April 10
  • Mar–Apr: due June 10
  • May–Jun: due August 31
  • Jul–Aug: due October 10
  • Sep–Oct: due December 10
  • Nov–Dec: due February 10 (next year)
You can file returns digitally through Norway's Altinn platform. Late filing may attract penalties or interest.

🌍 VAT on Imports and Exports

  • Exports: Goods sold from Norway to another country are zero-rated. You do not charge VAT, but you can still claim input VAT on your purchase costs.
  • Imports: All imported goods are taxed at the applicable VAT rate, usually collected by Customs at entry.
  • Digital Sales to Consumers: If you sell digital content (like e-books, music, or courses) to Norwegian consumers, you must register under the VOEC (VAT On E-Commerce) scheme and charge VAT from the first sale.

🚫 VAT Exempt Sectors in Norway

Some services are fully exempt from VAT, which means VAT is not charged, and input VAT cannot be claimed. These include:
  • Medical and healthcare services
  • Education and training
  • Financial and insurance services
  • Residential rentals (non-commercial)
  • Cultural and sports organizations

💡 VAT Calculation Example

Scenario: A Norwegian company sells goods worth NOK 20,000 at 25% VAT rate.
  • Net Price: NOK 20,000
  • VAT (25%): NOK 5,000
  • Total Invoice: NOK 25,000
The company must collect NOK 5,000 in VAT from the buyer and remit it to the government via their bimonthly return.

✅ Tips for VAT Compliance in Norway

  • Track Sales Closely: As soon as you cross NOK 50,000 in taxable sales, register immediately.
  • Use Proper Invoices: Follow the invoice format strictly to avoid issues during audits.
  • File on Time: Missing VAT deadlines may result in fines or late fees.
  • Claim Input VAT Smartly: Businesses can deduct VAT paid on business-related purchases.
  • Stay Updated: Tax rules change frequently; always check official guidance or consult a local expert.
Norway’s VAT (MVA) system is structured, efficient, and fair. Whether you’re a local company or a foreign supplier, understanding the MVA system is essential to operate legally and profitably. With rates ranging from 0% to 25%, careful planning and compliance will ensure that you avoid unnecessary penalties and maximize your business's tax efficiency.
For quick, accurate, and automated VAT calculations, visit GSTCal.org – your global destination for GST and VAT assistance.