The Norwegian tax authorities have announced that a new VAT return will be implemented from
1 January 2022. The VAT return will be based on standard SAF-T codes and it will be possible to submit the VAT return directly from the accounting system. In addition to this, the tax authorities are modernizing other parts of the VAT area.
The new VAT return
The current VAT return has 19 posts that has to be filled in, directly from the accounting system to Altinn or manually filled in via Altinn. The new VAT return has several posts that can be filled in and will be based on 25 standard SAF-T codes. In addition to reporting SAF-T codes, the following must also be specified separately when reporting VAT:
- Bad debt
- Adjustments according to the VAT adjustment scheme
It will be possible to add comments to the various posts in the VAT return.
Filing the VAT return
The new VAT return will require that the accounts are adapted to standard SAF-T codes or mapped to the codes mentioned below in the appendix.
The preferred solution would be filing from "system to system", i.e. filing directly from the accounting system to the tax authorities. However, it will still be possible to file the VAT return manually by logging on to the tax authority's portal and filling in the posts of the VAT return there. This will be an alternative for companies with joint registration and taxpayers who do not have the opportunity to file the VAT return via the accounting system.
Seeing as "system-to-system" filing is the tax authorities' preferred solution to avoid errors in reporting, it may be that taxable companies that file the VAT return via the portal must be prepared for more frequent controls by the authorities.
Furthermore, it will no longer be possible to submit an additional return for VAT, only a corrected return.
Proposal for duty to disclose information on purchase and sales transactions
On 26 August 2021, the Directorate of Taxes sent a proposal for a public hearing on a new obligation to disclose information for companies pursuant to chapter 7 of the Tax Administration Act. It is stated in the hearing document that the proposal will provide the tax authorities with a better basis for adapting the use of and targeting control measures for companies in order to reduce the extent of evasions.
The disclosure obligation applies to each individual purchase and sales transaction providing information about invoice number, documentation date, indication of the parties participating in the transaction stating name and organization number, as well as information about compensation and value added tax. There is no requirement to report what each individual transaction applies to.
The proposal entails amendments to the Tax Administration Act Section 7-5 and Section 7-12, the Tax Administration Regulations Section 7-5 and the Accounting Regulations Section 3-1 and Section 5-1. The overall objective is that the changes shall apply from 2024. For more information on the hearing document, please see:
Services rendered by KPMG
KPMG can assist with reviewing the new VAT returns and SAF-T codes that the new reporting will be based on.
We can also assist with mapping existing VAT codes to the new SAF-T codes, including assisting with validation of mapping performed by you. If your business is not yet SAF-T compatible, KPMG can also assist with the implementation of SAF-T.
If you want to submit the VAT return directly from your accounting system, KPMG will be able to validate the VAT returns for you. Either in an implementation phase or prior to submitting the VAT return to the tax authorities. Please do not hesitate to contact us for a conversation related to the new VAT return or to SAF-T.