NORWAY AMENDS VAT RETURN: TAXPAYERS MUST REPORT ADDITIONAL INFORMATION AS OF 2017

From January 1, 2017, the Norwegian Tax Administration is introducing an amended VAT return (Skattemelding merverdiavgift).

The amended form allows for import VAT to be accounted for on the return instead of being paid to customs at the point of importation, so as to enable taxpayers who import goods from abroad to offset import VAT against their output VAT liability.

Furthermore, as of 2017, import VAT tax and the VAT tax base are no longer provided in customs declarations.  Instead, importers must calculate these amounts for return purposes based on information provided in the customs declaration.

The new form contains 19 boxes instead of the previous 11.  Since new content is required, businesses must ensure that their accounting and enterprise resource planning (ERP) systems are able to handle the new reporting specifications and that their VAT codes relating to the new VAT return are up to date.

Even businesses that do not import goods must use the new form and take the necessary administrative measures in order to comply with the new system.

In addition, businesses that import goods must track their monthly transactions so that they can accurately report their import VAT on the new return, since unlike the customs authority, the Norwegian Tax Administration will not provide businesses with a monthly statement of account.

Filing and payment deadlines remain unchanged.

Click here for a link to the new VAT return and here for further information about it.

The 19 boxes to be completed are:

A. Total Turnover, Withdrawals from the Business and Imports

Box 1: Total turnover outside the scope of VAT 

Box 2: Total sales, withdrawals and imports within the scope of VAT

B. Domestic Sales and Withdrawals

Box 3: Domestic sales and withdrawals subject to 25% VAT 

Box 4: Domestic sales and withdrawals subject to 15% VAT 

Box 5: Domestic sales and withdrawals subject to 10% VAT 

Box 6: Domestic sales and withdrawals subject to zero rate VAT

Box 7: Domestic sales subject to the reverse charge

C. Exports

Box 8: Zero-rated exports of goods and services

D. Importation of Goods

Box 9: Imports of goods subject to 25% VAT 

Box 10: Imports of goods subject to 15% VAT 

Box 11: Imports of goods subject to zero rate VAT

E. Purchases Subject to the Reverse Charge 

Box 12: Purchases of services from abroad subject to 25% VAT 

Box 13: Domestic purchases of goods and services subject to 25% VAT 

F. Deductible Input VAT on Domestic Purchases

Box 14: Deductible VAT on domestic purchases subject to 25% VAT

Box 15: Deductible VAT on domestic purchases subject to 15% VAT

Box 16: Deductible VAT on domestic purchases subject to 10% VAT

G. Deductible Input VAT on Imports 

Box 17: Deductible VAT on imports subject to 25% VAT

Box 18: Deductible VAT on imports subject to 15% VAT

H. Total

Box 19: VAT Payable or refundable

By Joanna Norland, Technical Tax Editor, Sergeja Krajnc-Gani, Senior Editor, Bloomberg BNA, with contributions from Lee Hadnum, Editor.

For more information about VAT, see the Bloomberg BNA VAT Navigator.

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