Value added tax (VAT), known in Norwegian as merverdiavgift (MVA), is a central part of operating a business in Norway. The rules are found in the Value Added Tax Act (merverdiavgiftsloven) and the VAT Regulations, while reporting is governed by the Tax Administration Act. This article provides an overview of the main rules on VAT rates, registration, exempt and zero-rated supplies, and deduction of input VAT as they apply in October 2026.
How VAT Works
VAT is charged on the supply of goods and services. A registered business calculates VAT on its sales (output VAT) and has a right to deduct VAT on purchases made for use in the registered business (input VAT), under Section 8-1 of the Act. The difference is reported in the VAT return and either paid to, or refunded by, the state. The economic burden of VAT is therefore intended to fall on the final consumer, not on businesses.
VAT Rates in Norway
Norway currently operates with four rates:
25 per cent, the general rate, which applies to most goods and services;
15 per cent for foodstuffs, and from 1 July 2025 also for drinking water and wastewater services supplied through public networks;
12 per cent for specified services, including passenger transport, hotel accommodation and holiday home rental, public broadcasting, admission to cinemas, sporting events and amusement parks; and
zero rate (0 per cent) for specified supplies under Chapter 6 of the Act, such as exports and the last-stage sale of newspapers and books.
The applicable rate depends on the classification of the supply, and the boundaries between categories are often detailed. Classification should therefore be checked against the Act and the guidance from the Norwegian Tax Administration.
Registration and Pre-registration
The Registration Threshold
Under Section 2-1 of the Act, a business must register in the VAT Register once its taxable turnover and withdrawals exceed NOK 50,000 within a period of twelve months. For charitable and non-profit institutions and organisations, the threshold is NOK 140,000. Under Section 15-11, only a registered business may state VAT in its sales documentation. A business must therefore not charge VAT before it is registered.
Registration is made with the Norwegian Tax Administration. A Norwegian business must normally be registered in the Register of Business Enterprises (Foretaksregisteret) before it can be registered in the VAT Register.
Pre-registration
Under Section 2-4 of the Act, a business that has not reached the threshold may be pre-registered if:
it has made significant acquisitions directly linked to future taxable sales; or
its taxable turnover will exceed the threshold no later than three weeks after sales begin.
Under Section 2-4-1 of the VAT Regulations, acquisitions are significant when they amount to at least NOK 250,000 including VAT. It must also appear overwhelmingly likely that turnover in normal operations will be well above the registration threshold. Pre-registration on the basis of significant acquisitions is not available if the threshold is expected to be reached within less than four months from the application.
Exempt and Zero-rated Supplies
Exempt supplies fall outside the scope of the Act under Chapter 3. Examples include health services, education, financial services, the letting of real property and certain cultural services. VAT is not charged on these supplies, they do not count towards the registration threshold, and input VAT relating to them cannot be deducted.
Zero-rated supplies, by contrast, fall within the scope of the Act, but are subject to a rate of zero per cent. Input VAT on related purchases can be deducted. Examples include:
exports of goods and services;
the last-stage sale of newspapers and books;
the supply of used vehicles that have already been registered in Norway (Section 6-7); and
the supply and lease of electric vehicles, but only up to a set threshold (Section 6-8), with VAT charged on the amount above it.
Voluntary Registration
Section 2-3 of the Act permits voluntary registration in certain cases. The most important case in practice is the letting of buildings or facilities to tenants that are themselves registered for VAT. Voluntary registration allows the landlord to deduct input VAT on costs relating to the property. Further conditions apply, and voluntary registration may be backdated by up to six months (Section 14-1).
Deduction of Input VAT
A registered business may deduct input VAT on purchases for use in the registered business. The main conditions are that the purchase is for use in the business and that it is documented by a valid sales document from a registered supplier. Under Section 8-8, the right to deduct for purchases of NOK 10,000 or more also requires payment through a bank.
Purchases Before Registration
Under Section 8-6, a business may deduct input VAT on goods and services acquired up to three years before registration, provided they were acquired for use in the business that is later registered and have not been sold or withdrawn before registration.
Mixed Activities
Where a business carries out both taxable and exempt activities, input VAT on purchases used for both activities must be apportioned. Under Section 8-2, deduction is only available for the part that relates to the registered activity, typically based on estimated use.
The First Invoice After Registration
Since VAT may not be stated before registration, a business that has exceeded the threshold but is not yet registered should invoice without VAT and inform the customer that VAT will be invoiced once registration is complete. After registration, VAT is invoiced separately for those supplies and is included in all subsequent sales documents. Once registered, the business uses its organisation number followed by "MVA" on its sales documents.
Conclusion
The Norwegian VAT system is built on a general rate of 25 per cent, reduced rates of 15 and 12 per cent, and a zero rate for specified supplies. Registration is required once taxable turnover exceeds NOK 50,000 in twelve months, and VAT may only be charged after registration. A correct distinction between exempt and zero-rated supplies, documented deductions, and accurate apportionment for mixed activities are the foundation of compliance.
Related reading: The Norwegian VOEC Scheme: A Guide for Foreign Sellers and Marketplaces.
