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The Norwegian Ministry of Finance has launched a public consultation on proposed VAT rule amendments for cross-border trade in remotely provided services. The consultation, open until June 21, 2025, aims to eliminate VAT discrepancies that currently favor international companies over Norwegian businesses.
Key VAT Reform Proposals:
1️⃣ Expansion of VAT Liability on Remotely Delivered Services
- International companies purchasing services abroad for use in Norway will be subject to VAT.
- If services are used in VAT-deductible activities, VAT will not apply.
2️⃣ Extended VAT Deduction for Services Used Outside Norway
- Foreign businesses purchasing services in Norway for use abroad will be allowed VAT deductions to prevent unnecessary tax burdens.
3️⃣ Equal VAT Treatment for Financial Service Providers
- Companies providing financial services to Norwegian customers from abroad will have the same VAT obligations as domestic providers.
Implementation & Consultation Details:
Proposed effective date: January 1, 2026
Public consultation is open until June 21, 2025
Responses can be submitted via the government’s consultation portal
These reforms aim to close tax loopholes, promote fair competition, and ensure a level playing field for both Norwegian and international businesses.
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