VAT Aspects of Doing Business in Norway.

Denne publikasjonen inneholder en beskrivelse av det norske merverdiavgiftsystemet. Forfatteren, Nils Eriksen, har tidligere jobbet blant annet i Finansdepartementet, International Bureay of Fiscal Documentation (IBFD) i Amsterdam, EU-kommisjonen i Brussel, OECD i Paris, og har vært momsrådgiver i privatsektoren i en rekke land. Basert på hans erfaringer med forskjellige mva-systemer, fokuserer forfatteren på 10 særskilte trekk ved det norske mva-systemet som multinasjonale virksomheter bør kjenne til.

This publication contains a description of the Norwegian VAT system. The author has prior to PwC amongst others worked for the Norwegian Ministry of Finance, the International Bureau of Fiscal Documentation (IBFD) in Amsterdam, the EU Commission in Brussels, the OECD in Paris and as a VAT advisor in the private sector in various countries.

"In managing their VAT risks, foreign MNEs doing business in Norway should consider whether appropriate resources (in-sourced, outsourced or a mix) are allocated to Norwegian VAT issues. Relevant facts and circumstances to take into account are:

1. Norway is not part of the EU and its VAT is therefore based on a separate legal regime. This regime does not fall within the boundaries of the Sixth Directive as further developed by the ECJ. Any "common solution" in the 25 Member States therefore requires separate consideration in Norway.
2. The VAT treatment of exported services is not based on a catalogue approach as in the EU, but rather a consideration as to whether a service is capable of delivery from/to a remote location or exclusively used abroad.
3. The import of services triggers VAT to a wider extent than in many other countries.
4. Place of supply rules as known in many jurisdictions are non-existent. The issue of VAT liability in Norway is determined differently based on a mix of factors adding complexity and uncertainty.
5. The concepts of taxable person and economic activity differ from many other jurisdictions.
6. A VAT reform became effective recently, and the number of court cases and administrative interpretations is increasing which in turn means frequent VAT framework changes for business.
7. The VAT authorities' approach is relatively formal and conservative.
8. Norway applies one of the highest VAT rates in the world (25%).
9. The fiscal representative regime is conservative and reflects an "old fashioned" approach to the handling of invoices, books and accounts.
10. Penalties and interests are high and mistakes therefore expensive."