31 August 2016
In our previous article from June 2016 we stated that the Norwegian tax authorities were planning to change the rules on accounting for VAT when importing goods into the country. These changes have now been confirmed and mean that from 1 January 2017 companies registered for VAT in Norway will need to report and deduct import VAT in their VAT returns.
This will in effect remove the requirement to pay import VAT on goods at the time they are imported, which should result in savings on shipping costs. It should also improve cash flow for businesses importing into the country, as they will no longer need to wait for the VAT to be refunded from the Norwegian tax authorities.
These new requirements will apply to all businesses importing into Norway and a new Norwegian VAT return form will be introduced to allow VAT registered businesses to account for this deferment.