TAXES IN NORWAY
Norwegian entrepreneurs are obliged to comply with the regulations and deadlines set by the tax authorities, and failure to comply with the formalities may lead to serious consequences including the need to pay a financial penalty. On this page we have gathered detailed information related to the applicable taxes in Norway, their characteristics, scope and deadlines, which will enable you to familiarise yourself with the current tax regulations.
Tax liability applies to all enterprises and self-employed persons who live and work in Norway, including owners of subsidiaries of foreign companies (NUF). Doing business in Norway involves paying tax – the type and amount of tax depends on a number of factors such as the nature and type of business and the employment of employees.
The Authority calculates income tax based on the amount of company profit declared by the entrepreneur. Income tax is paid in the form of advance payments, which must be paid on the prescribed dates:
– by 15 March,
– by 15 June,
– by 15 September,
– by 15 December.
Norway’s membership of the EEA, or European Economic Area, allows for the exchange of goods between Poland and Norway. Imports and exports involve the payment of customs duty and VAT – businesses in the VAT register should account for import charges in their tax return (excluding customs duty and shipping documents).
IMPORT AND EXPORT
Norwegian VAT on imports is 25% and 15%. Amongst others, electric cars, ships and their parts or electric windmills (energy sources) are not taxed.
Export is understood as the export of goods produced in Norway. The sale of goods is considered to be export if the entrepreneur declares the export of goods outside the EU to a customs office.
The export of certain groups of goods requires special permits. This applies to:
– medicines (legemiddelverket.no),
– arms (politi.no),
– food and food supplements (mattilsynet.no),
– seedlings (mattilsynet.no).
A company that intends to export goods to Norway should:
– invoice the recipient with zero VAT,
– notify customs of its intention to export goods outside the EU,
– notify the Norwegian Customs Service of the entry of goods into the country.
Please note that it is the recipient’s responsibility to pay the tax due on the exported goods.
A SAD must be presented at the border. The transport documents should contain all information about the goods being transported and the purchase invoice. The attached invoice must include the correct VAT rate – standard or zero VAT. The trader may request a correction of the input tax – to do so, a request for a correction of the invoice must be submitted to the office together with a confirmation of the export of the goods. The preparation of the SAD can be outsourced to a customs agency, which has all the information on current procedures and customs duties.
In 2019, the income tax rate in Norway is 22% on the company’s profit. To the base amount must be added the corresponding tax percentage depending on the tax threshold in which the profit made by the entrepreneur in the year closes.
REGISTRATION IN THE VAT REGISTER
Any company whose turnover exceeds NOK 50 000 in the following 12 months should be entered in the VAT register as a VAT payer. If the company’s turnover does not exceed a certain amount after 12 months, the limit of NOK 50 000 is reset to zero.
Registration in the Merverdiavgiftsregisteret, i.e. the Norwegian VAT register, can be done at the relevant tax office or via Altinn.no. The registration is done using form BR-1080 – the application consists of two parts. Enterprises listed in the Register of Business Entities (Enhetsregisteret) only complete the second part of the form. Subsidiaries of foreign companies (NUF) may deduct VAT charged by customs when purchasing goods for use in the course of business. NUFs are required to keep sales statements (omsetningsoppgaver) and to calculate and pay sales tax on goods and services on a regular basis. Companies that are not domiciled in Norway (subsidiaries of foreign companies) may have their tax formalities handled by an appointed tax representative. The representative is responsible for representing the company in its dealings with the tax authorities – the representative may only be a person who lives and works permanently in Norway.