VAT (Value Added Tax) is a central part of financial management for all companies that sell goods and/or services in Norway. However, VAT is not just a number on an invoice – it is a process that spans from invoicing and bookkeeping, through reporting to the authorities, to payment and potential refunds.
By understanding the entire process, companies can gain better control and reduce surprises. It is essential to integrate the process properly into financial workflows and routines.
Invoicing and Bookkeeping
In Norway, the standard VAT rate is 25% for most goods and services, while food and beverages are taxed at 15%, and passenger transport, cinema tickets, and room rentals at 12%.
Example: A company invoices a customer 100,000 NOK excluding VAT, the total invoice amount including VAT would be 125,000 NOK (at 25%). The company then has output VAT of 25,000 NOK that must be reported and paid.
At the same time, the company can deduct input VAT on goods and services purchased for business use. This ensures that the company only pays the net value added to the government, the difference between purchases and sales.
Example: A company purchases goods for 200,000 NOK, excluding VAT (50,000 NOK input VAT) and sells goods for 300,000 NOK, excluding VAT (75,000 NOK output VAT). The net VAT payable to the Norwegian tax Administration is therefore 25,000 NOK (75,000-50,000).
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When a Company Must Register for VAT and How to Do It
To charge VAT and claim deductions for input VAT, a company must be registered in the VAT Register.
Registration is mandatory once a company has had a turnover of 50,000 NOK or more within a consecutive 12-month period. Charitable organizations have a higher threshold of 140,000 NOK.
Registration is done via Altinn by submitting a Coordinated Register Notification (BR-1010). The company provides it’s organization number, turnover and the type of goods or services it will sell. The CEO or another authorized signatory must sign the form. The Norwegian Tax Administration (Skatteetaten) reviews the application, and once approved, the company receives confirmation of registration.
After registration, all invoices for sales must include VAT at the correct rate and the company’s organization number followed by the letters “MVA” (VAT).
Start-up companies expecting to exceed the threshold soon can apply for pre-registration. This is particularly relevant for companies in the start-up phase with significant costs, allowing them to deduct input VAT on investments. More information is available on Skatteetaten’s website.
Reporting to the Authorities
Registered companies must submit a VAT return to Skatteetaten every 2 months. Reporting is done electronically via Altinn, and the figures are drawn from the accounting system. We use Tripletex to submit VAT returns. The system is integrated with Altinn and automatically notifies when the return has been received.
The submission itself is relatively quick. The time-consuming part is bookkeeping and reconciliation. We quality-assure the calculations and provide a receipt, so you know whether you need to pay VAT to Skatteetaten or are entitled to a refund.
Once the VAT return is submitted, the company must pay any VAT owed by the deadline. If input VAT exceeds output VAT, the company receives a refund of the difference from the authorities. This is an important part of liquidity management. Good routines ensure VAT does not become an unexpected burden.
Contact us
Understanding the VAT process is not just about complying with regulations – it’s about building good routines that strengthen financial control and liquidity. With the right structure, digital support, and expert guidance, VAT management can be both simple and value-creating.
VAT is not just a requirement. It is a key to better oversight, secure operations, and smarter financial management. We assist with VAT registration, bookkeeping and submission of returns to The Norwegian Tax Administration. Contact us to arrange a meeting and discuss how we can support your business.
