Value Added Tax (VAT) registration is a critical obligation for businesses operating in Norway once they reach specific turnover thresholds. This article outlines the key requirements for VAT registration, different registration types available, the registration process, and post-registration obligations based on Norwegian tax regulations.
Who Must Register for VAT in Norway?
Self-employed individuals and organizations must register in the Norwegian VAT Register when their vatable turnover exceeds specific monetary limits within a 12-month period. It's important to note that only the turnover from goods and services subject to VAT counts toward this limit.
The registration thresholds are:
NOK 50,000 (excluding VAT) for most enterprises and organizations
NOK 140,000 (excluding VAT) for charitable and non-profit organizations
The 12-month period is rolling and can span across calendar years (e.g., February to January or August to July). Businesses cannot include VAT on invoices until they have been officially registered.
Registration Types and Special Scenarios
Joint Registration
Companies with close ownership ties can apply for joint registration, which offers several advantages:
No VAT calculation on inter-company sales
Filing of one consolidated VAT return
Collective consideration of VAT deduction entitlements
Requirements for joint registration include:
All participating enterprises must engage in business activity
At least 85% of each company's capital must be owned by one or more of the other enterprises
At least one enterprise must have external turnover exceeding the registration threshold
Documentation requirements apply if the applicant doesn't have signing authority for all enterprises involved in the joint registration.
Pre-Registration Options
For Large Investments
Businesses making substantial investments during startup can apply for pre-registration to claim VAT deductions on purchases if:
They've purchased VAT-applicable goods/services worth at least NOK 250,000
More than 4 months will pass before reaching the turnover threshold
They can demonstrate expected future turnover exceeding the threshold
If the business fails to meet projections, paid VAT must be returned.
For Expected Rapid Growth
Newly established enterprises expected to reach the monetary threshold within 3 weeks can apply for immediate pre-registration, allowing them to issue VAT-inclusive invoices from the start.
Voluntary Registration for Property Rental
Property owners renting buildings or facilities to VAT-registered businesses can apply for voluntary VAT registration, enabling them to:
Claim VAT deductions on expenses related to the premises
Issue invoices with VAT for qualifying rental income
Key requirements include:
The property owner must conduct business activity
At least one tenant must be VAT-registered and conducting VATable activities
Rental income from VAT-registered tenants must exceed NOK 50,000 over 12 months
Formal tenancy agreements must exist
Detailed documentation of space usage, expenses, and tenant activities must be maintained.
Special Registration for Foreign Enterprises
Foreign businesses without a domicile or place of business in Norway must generally register with a Norwegian representative who:
Has domicile or registered business address in Norway
Is jointly responsible for VAT reporting and payment
Exceptions apply to businesses resident in the UK or specified EEA countries, which can register without a representative.
Partial Registration
Businesses conducting different types of activities can apply for "special registration" to register only specific parts of the enterprise, provided these parts are:
Physically and formally separated
Maintaining separate accounting records
This option allows organizations like sports clubs to register only their commercial activities while keeping non-commercial operations outside the VAT system.
Registration Process
Before initiating registration, businesses should:
Ensure they're registered in the Central Coordinating Register of Legal Entities
Determine the appropriate registration type
Have necessary documentation ready
Secure appropriate Altinn roles for digital submission
The application response is typically delivered to the enterprise's Altinn inbox within minutes, though complex cases may take up to 3 weeks. Importantly, businesses cannot issue VAT-inclusive invoices until registration approval.
Post-Registration Obligations
Invoicing Requirements
After registration, businesses must:
Issue a VAT-inclusive invoice for the sale that pushed turnover over the registration threshold
Reissue any pre-registration invoices with VAT (by creating credit notes for original invoices)
VAT Reporting
Registered businesses must submit VAT returns, typically six times per year, reporting:
VAT claimed on sales
VAT paid on purchases
Submissions must meet deadlines to avoid enforcement fines. Most businesses report bimonthly, though those with annual turnover under NOK 1 million can apply for annual reporting periods.
Historical VAT Deductions
Newly registered businesses can claim VAT deductions for previous business-related expenses going back three years, including telephone usage, computer equipment, and other investments.
Changing or Canceling Registration
Businesses must update their VAT registration when activities change (e.g., adding new business types). Those no longer conducting VATable business activities can deregister from the VAT system, eliminating the requirement to submit returns.
Deregistration does not affect the enterprise's registration in the Central Coordinating Register, allowing them to retain their organization number and easily re-register if VATable activities resume.
Conclusion
VAT registration is a fundamental obligation for businesses operating in Norway once they reach specified turnover thresholds. Understanding the different registration options, process requirements, and ongoing obligations ensures compliance with Norwegian tax regulations while maximizing available VAT deduction benefits.
