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Norway’s Tax Administration has audited 150 foreign online companies that initially failed to pay VAT, resulting in back taxes, additional charges, and VAT totaling 4.9 billion NOK. These companies operate in streaming, gaming, dating, and adult content services.
The 150 foreign online companies, audited since 2016, were not registered for VAT before the controls. After being forcibly registered, they have now reported 4.1 billion NOK in VAT. Many of these companies now comply with Norwegian tax rules, demonstrating the critical importance of the audits.
Odd Woxholt, divisional director at the Norwegian Tax Administration, stressed: “Failing to pay VAT is illegal and creates unfair competition because these companies can offer services at lower prices than their competitors. As more of the economy moves online, we continue to provide guidance while ensuring compliance in these sectors.”
Collaboration with tax authorities from other countries has also been essential in some cases, including where Norwegian principals operate from abroad.
Practical Advice for Foreign Digital Companies:
To prevent late payments and penalties, foreign businesses in Norway should:
- Register promptly in the VOEC (VAT on E-commerce) or the ordinary VAT system if sales to Norwegian consumers exceed NOK 50,000 within 12 months.
- Use online filing systems to report and pay VAT on time, minimizing the risk of fines.
- Work with local accounting firms for VAT registration, calculation, and reporting—particularly helpful for streaming, gaming, and other digital services.
- Stay proactive by monitoring payments regularly to maintain compliance and credibility in the Norwegian market.
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