Home
Explore
Guides

Country Tax Guides

All Guides Europe Americas Asia-Pacific Africa

VAT for Beginners

Indirect Tax 101
Tools
VAT Calculator GST Calculator Sales Tax Calculator VAT Number Check
Events Authors EN

Overviews

Court Decisions Expert Insights 🔊CJEU Podcast

Tax Updates

All News Europe Americas Asia-Pacific Africa

Topics

e-Invoicing Digital VAT Registration Tax Compliance and Reporting Tax Rates Nexus Tax Schemes Crypto Cross-Border Supply Customs ViDA Tax Returns

Indirect Taxes

VAT GST Sales and Service Tax Consumption tax PST Sales and Use Tax Digital Service Tax Excise Duty Japanese Consumption Tax

Other Taxes

Direct Taxes
Home
Learn About Tax
Tax News Tax Insights & Analyses Tax Guides Court of Justice of the European Union VAT for Beginners
Tools
VAT Calculator GST Calculator Sales Tax Calculator VAT Number Checker
Events Authors EN
Norway
Norway
Europe

Norway VAT Consultation on Cross-Border Services – Proposed Amendments to Tax Rules

April 4, 2025
Norway VAT Consultation on Cross-Border Services – Proposed Amendments to Tax Rules

Services

The Norwegian Ministry of Finance opened a public consultation on the proposed amendments to the VAT rules on remotely delivered services. These services include marketing, consulting, and information and communication technology (ICT) services, and their performance and delivery cannot be linked to a specific physical location due to their nature.

Proposed Changes to VAT Regulations

As the Ministry of Finance highlighted, VAT in cross-border trade is based on the destination principle, meaning that VAT is due in the country where goods and services are consumed. Consequently, services bought outside Norway and used in Norway must be taxed in Norway.

Nevertheless, these rules apply differently to international companies that, for example, have headquarters in Germany and a branch office in Norway. If the Norwegian branch office uses the service in an activity that the VAT Law does not cover, input VAT on purchases is not deducted; the company does not bear the VAT costs.

In other words, international companies have an advantage over Norwegian companies, and the international companies selling financial services in Norway benefit the most.

The open consultation consists of three parts. The first is the proposal to extend the obligation to calculate VAT on remotely delivered services that international companies buy outside Norway but are for use in the country, thus equaling the tax treatment for international and Norwegian companies.

The second part of the consultation refers to the proposal to expand the right to deduction when international companies buy services in Norway that are used outside the country. This amendment will exempt international companies from VAT in Norway on services used outside the country if adopted.

The third part focuses on establishing a special rule to ensure equal treatment between international and local companies that sell financial services to Norwegian consumers, regardless of whether they sell them abroad or from Norway.

Conclusion

With these suggestions, Norway became the first European country to propose introducing the OECD model for using purchased, remotely deliverable services in its own business in several countries. Consultations are open until June 21, 2025, and all interested parties may submit their opinions and suggestions through the government website.

Source: Norwegian Government - Consultation – VAT on cross-border trade in services, KPMG


What is the purpose of Norway's public consultation on VAT for cross-border services?
The Norwegian Ministry of Finance is seeking public input on proposed changes to VAT rules for remotely delivered services, including marketing, consulting, and ICT services, to ensure fair tax treatment for international and local companies.
What services are affected by the proposed VAT changes in Norway?
The proposed changes affect remotely delivered services such as marketing, consulting, and information and communication technology (ICT) services that cannot be linked to a specific physical location.
How does the proposed VAT change impact international companies in Norway?
International companies will be required to calculate VAT on remotely delivered services bought outside Norway but used in Norway, ensuring equal tax treatment for both international and local companies.
What benefits do international companies currently have under the existing VAT rules?
International companies with branches in Norway may not pay VAT on services if they are used in activities not covered by Norwegian VAT law, giving them an advantage over local companies.
What is the deadline for submitting feedback on Norway's VAT consultation?
The consultation is open until June 21, 2025, and interested parties can submit their feedback through the Norwegian government's official website.
How will the proposed VAT amendments affect financial services in Norway?
The proposed changes aim to establish equal tax treatment for international and local companies selling financial services in Norway, whether these services are sold abroad or within the country.
Norway
Europe
Cross-border supply
Tax Compliance
VAT

VAT tax researcher, specializing in delivering clear, up-to-date insights on indirect tax regulations and compliance for our website. Rasmus Laan

Featured Insights

Supreme Administrative Court of Lithuania Practice on Appealing Tax Administrator Decisions

Supreme Administrative Court of Lithuania Practice on Appealing Tax Administrator Decisions

🕝 May 19, 2025

US Sales Tax Exemption Certificates Explained for Retail & E-commerce Compliance

🕝 May 15, 2025

The Rise of E-Invoicing in Asia: Regulatory Changes and Business Impact

🕝 May 7, 2025

How to Apply Reverse Charge VAT for SaaS Companies

🕝 May 6, 2025

More News from Norway

Get real-time updates and developments from around the world, keeping you informed and prepared.

Norway VAT Compliance for Non-Resident Digital Platforms: Rules & Reporting
Norway

Norway VAT Compliance for Non-Resident Digital Platforms: Rules & Reporting

April 24, 2025
10 minutes
Norway VAT Consultation on Cross-Border Services – Proposed Amendments to Tax Rules
Norway

Norway VAT Consultation on Cross-Border Services – Proposed Amendments to Tax Rules

April 4, 2025
3 minutes
Norway Supreme Court Approves Simplified VAT Registration for Foreign B2C Sales
Europe

Norway Supreme Court Approves Simplified VAT Registration for Foreign B2C Sales

November 11, 2024
3 minutes
Norway: VAT on Used Car Sales
Norway

Norway: VAT on Used Car Sales

August 28, 2024
3 minutes

Stay Ahead of VAT Changes

Don’t miss out on crucial VAT developments that could impact your business or practice. 

Thanks for subscribing!
You can unsubscribe at any time.
VAT News Insights & Analyses Tax Guides Events About us Sponsors Authors Become a Contributor
Privacy policy
EU Tax Reform VAT News in Europe VAT for Digital Platforms Sales Tax GST ECJ Cases E-Invoicing
hello@vatabout.com