All about VAT

In Norway, there is a general VAT (value-added tax) on goods and services that are sold in the country, unless they are specially exempt.

What is the VAT rate?

Ordinary rate for VAT is 25%.

For certain industries the rate may be lower, for example, there is a rate of 15% VAT on the sale of foods, and 10% VAT on person transport and room rental. Some industries are exempt from VAT. You can see more about rates here.

VAT registry

The obligation to register in the VAT registry is stated in Merverdiavgiftsloven (Law about VAT) §2-1. You are not permitted to collect VAT until you are registered in the VAT registry.

When do you have to collect VAT?

The first 50 000 NOK that you sell for in a 12-month period are exempt from VAT. When you surpass 50 000 NOK, you have to register in the VAT registry and start collecting VAT.

You must collect VAT from and including the invoice that makes your total amount surpass 50 000. If you think you will surpass 50 000 within the course of 12 months, you can register in the VAT registry immediately.

What happens after I register for VAT?

Once your company is registered for VAT, PayoutPartner automatically fetches the latest information from brreg.no and adds VAT for future invoices.

For past invoices, there are two options:

Option-1:

• You can credit your past invoices on PayoutPartner.com
• You can create duplicates with VAT on PayoutPartner.com, and send them to your customers

Option-2:

• You can send an email to support@payoutpartner.com with your VAT registration approval letter
• We fix the rest for you by finding all your non-VAT invoices, reading your letter from Skatteetaten, and sorting out whatever needs to be done.

If you are not registered in the VAT registry

If you are not registered in the VAT registry, you are not permitted to collect VAT. To avoid VAT being added to your invoices, you can choose 0% in the VAT column when you create an invoice.