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New measures from Government to support businesses and industries

Updated 01.04.2020: The Government has today presented its measures to support business and industry regarding indirect taxation.

Updated 01.04: New measures to support business and industry regarding indirect taxation.

20.03.2020 - updated 01.04.2020

The Government has today presented its measures to support business and industry regarding indirect taxation. The measures have been previously notified and apply to postponement and relief. 

The Government has today presented new draft resolutions to amend the Storting Decision on value added tax for the budget term 2020, which will provide support to a pressured business sector regarding indirect taxation.

  • Low rate of VAT will be reduced from 12 to 6% in the period from 1 April 2020 to October 31 2020.
  • The deadline for payment of the first VAT period 2020 is postponed from 14 April to 10 June 2020.

The low rate of 12% includes passenger transport, overnight lodging, public broadcasting, access to cinema, museums, amusement parks and major sporting events. Low rates mean that the tax subject according to current rules must calculate 12% value added tax on sales, while deducting VAT on acquisitions for use in the business which normally is 25%. The Ministry of Finance has therefore proposed that rate reduction shall apply as from 1 April to 31 October 2020.

The tax return for VAT for the first ordinary VAT period (January and February 2020) is to be delivered on April 10 2020, and becomes due on April 14 2020, which is the first business day after the deadline for delivery of the VAT return. The Government proposes to follow up the Storting's Decision by postponing the deadline for paying VAT for the first ordinary VAT period in 2020 to 10 June 2020.

No changes are proposed in the rules regarding when a tax return for VAT is to be submitted or to the extent of the duty to disclose. Nor does the Ministry propose any changes for taxpayers who have different tax planning period.

The Customs Authorities states that freight transport is operating as normal and no limits have been closed for this. It is stated that all transport of goods, imports and exports, which does not involve the carriage of passengers, shall be as normal on road, train, ship and aircraft. Airports, ports and border crossings are kept open for such traffic.

For more information, visit the Custom Authorities' website.