Companies are obliged to register in the VAT Register once the turnover covered by the Act exceeds NOK 50 000 during a twelve-month period.
A business registered in the VAT Register must calculate and collect VAT when it sells goods and services, unless the specific good/service is exempt from VAT (zero rate). The general VAT rate is 25 %, but some sectors and areas have reduced VAT rates.
Businesses that are registered in the VAT Register are entitled to deductions for VAT paid on their own purchases (input VAT).
If a branch of a foreign company is not run from a fixed place of business in Norway and is covered by the provisions of the VAT Act, a representative must be registered. The VAT representative is obliged to control that the VAT handling is correct and is responsible for filing the VAT return. The requirement for a VAT representative does not apply to companies from certain EU/EEA countries.
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