Skip to content
VAT in Norway: Import of services - reverse charges
Synnøve Sørdal - Lawyer & Partner13. September 2021 3 min read

VAT in Norway: Import of services – reverse charge

In the area of Norwegian taxation, a notable mechanism comes into play when businesses procure services from foreign suppliers. Known as "import of services - reverse charge in Norway," this procedure specifically applies to intangible services, those not confined to a fixed location for execution. For such services, VAT obligations arise if they are deemed taxable in Norway. In this blog, we delve deeper into the intricacies of this mechanism, explaining its implications and how you report and apply your VAT.

What does import of services - reverse charges in Norway mean? 

This refers to a VAT (Value Added Tax) mechanism that shifts the responsibility for reporting and paying VAT from the foreign supplier to the Norwegian customer (buyer of the service). This applies when services are purchased from abroad by businesses or other VAT-liable entities in Norway.

This means that when a Norwegian business buys services from a foreign company (that’s not registered for VAT in Norway), the Norwegian business must calculate and report the VAT itself — as if it had both sold and bought the service. This is called the reverse charge mechanism.

DO YOU HAVE VAT IN NORWAY QUESTIONS?

Contact us and get in touch with an VAT advisor today!

Who is responsible for import VAT on services in Norway?

Services are to a large extent subject to a reverse charge procedure in EU. This is not the same in Norway. The reverse charge procedure in Norway will only apply to so called intangible services. Intangible services may be described as services that are not dependent on a fixed place to be carried out.

Therefore, non-established suppliers of services are often not aware of their VAT obligations in Norway.

When Norwegian companies purchase services from abroad, they will in some cases themselves be responsible for calculating and paying VAT in Norway. The non-established suppliers of the services will in these cases not be obliged to register for VAT in Norway.

The conditions for this are as follows:

  • The buyer must be a public sector enterprise or business which operates in or is affiliated to Norway. This also applies to foreign enterprises or businesses which have a VAT representative in Norway.
  • The service is vatable if it had been sold in Norway.
  • The service can be provided anywhere

The purchase must concern a service which can be provided anywhere

Intangible services are services which can in principle be provided anywhere. In other words, it can be provided remotely. This means cases where the provision of the service, by its nature, is difficult to associate with a physical location.

Examples of remotely deliverable services:

  • Services that can be supplied digitally
  • Advisory/consultancy services
  • Accounting services
  • Services which are provided electronically, including digital products supplied via the internet
  • Hiring-out of labor

Also read: Should your business register for VAT in Norway?

Note that the key question is whether the service is capable of remote delivery, not if such a service is delivered at a physical location. The scheme does not apply to private individuals and non-profit organizations and associations which do not carry on commercial activity. If the service is purchased for use in the organization's commercial activity, the organization must report and pay VAT.

If the nature of the work is such that it must be carried out in Norway, for example when a foreign supplier works on a property in Norway, the supplier will normally be obliged to register the activity in Norway. This will also apply in B2B transactions. Foreign established suppliers are therefore obliged to register for VAT in Norway and include Norwegian VAT on their invoices when they supply services in Norway. VAT related to services performed physically in Norway should be accounted for by the supplier.

Also read: VAT on e-commerce (VOEC) in Norway

How to report and pay your VAT?

If the buyer is registered for VAT, the VAT shall be reported on the ordinary VAT return. There is no lower threshold amount for such buyers.

Buyers who are not registered in the VAT register must report via the tax return for VAT for reverse tax liability (RF-0005). The reporting and payment obligation only apply if the VAT amount for the quarter amounts to at least NOK 500, i.e. if the basis is at least NOK 2,000.

The buyer must in both cases convert the purchase sum to Norwegian kroner using Norwegian Custom's exchange rate at the time of delivery. You can find the import calculator at toll.no.

DO YOU HAVE VAT IN NORWAY QUESTIONS?

Contact us and get in touch with an VAT advisor today!
avatar
Synnøve Sørdal - Lawyer & Partner
Synnøve is a seasoned business lawyer with extensive expertise in Norwegian Value Added Tax (VAT), customs regulations, and general business law. Her background includes 16 years of legal practice and 3 years at the Tax and VAT department of the Norwegian Tax Administration. She advises Norwegian and international companies on various VAT and tax matters, such as guiding foreign businesses entering the Norwegian market, providing VAT support for real estate projects, and assisting clients in audits and assessments with the Tax Administration.
Synnøve Sørdal - Lawyer & Partner23. May 2025 4 min read

How to get VAT refund in Norway: 6 key considerations

Has your company made purchases in Norway that included Norwegian VAT? If the company is not VAT-registered in Norway, you ...
Read more
Synnøve Sørdal - Lawyer & Partner22. October 2021 7 min read

VAT on e-commerce (VOEC) in Norway

Foreign sellers and online marketplaces are responsible for collecting and remitting VAT on low-value goods sold to Norwegian ...
Read more
Synnøve Sørdal - Lawyer & Partner11. November 2021 7 min read

Should your business register for VAT in Norway?

Are you wondering if your business should register for VAT in Norway? Determining whether your company meets the criteria for ...
Read more