As in Poland, VAT in Norway is collected at every stage of trade in goods. In practice, this means that a receivable from the tax office arises with every transaction. From the producer, through wholesalers and middlemen, to the final consumer. How does the VAT settlement look like from the entrepreneur's point of view? When and how to submit a VAT declaration (MVA)?
Norway VAT obligation
Tax VAT in Norway is referred to as merverdiavgift, or MVA for short. It is also commonly known as VAT. However, not every entrepreneur is obliged to register in the Norwegian register of VAT payers. Such an obligation arises only at the moment. When a given company generates a turnover in excess of 50 NOK in 000 consecutive months.
Invoice marking
From the moment the company is entered in the register of payers, an additional fee must be added to each invoice issued VAT. Additionally, the company will be obliged to mark issued sales documents in a different way. From now on, the MVA designation should appear next to the organizational number.
Also read: Tax settlement in Norway >>>
VAT rates
There are three tax rates VAT in Norway. The basic amount is 25% of the net value products sold and services. The reduced amount is 15% and is added to sales food products and drinks. The lowest rate of 12% applies, among others, to: cinema tickets and passenger transport services.
VAT in Norway as an added value
From the entrepreneur's point of view, an important piece of information is that VAT in Norway it is constructed on the principle of added value. The easiest way to explain this mechanism is to use the example of commodity trading. If entrepreneur X buys from entrepreneur Y a product worth NOK 100 net. In practice, this will pay NOK 125 gross for it. Assuming trader X wants to earn 50 NOK on the product. This sells it to the consumer for NOK 150 + 25% VAT, which is NOK 187,50 gross.
In the case of the latter transaction, only the profit of NOK 50 is taxable. In practice, the entrepreneur will only pay NOK 12,50 to the Tax Office. This is possible thanks to this. That's Norwegian the tax system allows you to deduct from the resulting receivable the tax that has already been charged in the previous transaction.
Also read: Tax refund in Norway >>>
VAT declaration in Norway
The basis for the settlement VAT in Norway is the MVA declaration. It is submitted every two months or once a year for small businesses. This document lists all revenues and costs incurred by the payer. It must only be submitted electronically via the Altinn system. Good to rememberthat the deadline for submitting the declaration is also the final deadline for settling the payment.
Settlement dates
- April 10: 1 VAT deadline (January, February)
- June 10: 2nd VAT deadline (March, April)
- August 31: 3rd VAT deadline (May, June)
- October 10: 4th VAT deadline (July, August)
- 10 December: 5th VAT deadline (September, October)
- And 10 February: 6 VAT deadline (November, December)
and/ or
- March 10 for those submitting annual report MVA
Recovery of VAT when the company was not a payer
An interesting piece of information is the possibility of recovery VAT in Norway, which was paid before the company was registered as a payer. However, this alternative only arises when the entrepreneur has already become a VAT payer. In order to recover settlement of previously paid tax belongs. Submit an appropriate declaration that includes all costs incurred by the payer before entry into the register.
Also read: Taxes for companies in Norway >>>
Help for companies in Norway
If the tax system VAT in Norway is too complicated, we encourage you to contact the company TopNor run by an Authorized Accounting Office. A specialized advisor will help you settle your taxes correctly with the Tax Office, thanks to which you will be able to develop your business more efficiently.
