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Norway: VAT relief measures, responding to coronavirus (COVID-19)

Norway: VAT relief measures, responding to coronavirus

Norway’s government today presented measures to support business and industry regarding indirect taxation, in response to the coronavirus (COVID-19) pandemic. In general, the measures apply to postpone value added tax (VAT) payments and address the VAT “low rate.”

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  • The VAT low rate would be reduced from 12% to 8% in the period from 20 March 2020 to 31 October 2020.
  • The deadline for payment of the first VAT period for 2020 would be postponed from 14 April 2020 to 10 June 2020.

Sales subject to the VAT low rate of 8% include passenger transport, overnight lodging, public broadcasting, access to cinema, museums, amusement parks and major sporting events. Low rates mean that the tax must be calculated at a rate of 12% VAT on sales, while deducting VAT on acquisitions for use in the business is normally 25%.

The tax return for VAT for the first VAT period (January and February 2020) would be filed on 10 April 2020 (actually due on 14 April 2020, which is the first business day after the deadline for delivery of the VAT return). The deadline for paying VAT for the first ordinary VAT period in 2020 would be 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.

Norway’s Customs indicated that freight transport is operating as normal.


Read a March 2020 report prepared by the KPMG member firm in Norway

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