If you are travelling to or conducting business with companies in Norway, you may incur VAT on expenditure incurred in country. With a standard rate of VAT at 25%, the VAT cost can build up very quickly. If you incurred VAT in Norway during 2019, you may be eligible for a refund; however, the deadline for submission of claims is fast approaching and the clock is ticking!
Historically, businesses operating within Norway who incurred Norwegian VAT on in-country costs only had 6 months from the end of the calendar year to make a claim. This meant that businesses were required to submit a Norwegian VAT refund claim by 30 June in relation to the VAT incurred in the previous claim year. However, for Norwegian VAT incurred from 1 January 2019 to 31 December 2019, this deadline has now been amended to 30 September.
Given the current COVID-19 pandemic, this will give businesses time to make their annual claims and could provide a welcome cashflow boost in these difficult times.
Who can make a reclaim?
Any UK business that has conducted cross-border transactions in Norway, where it is not registered, is eligible to recover the VAT charged according to Norway’s local VAT recovery rules.
How much VAT can be recovered?
Claims are subject to the VAT rules in Norway. Common eligible costs for which claims can be made include:
- Admission to trade shows and exhibitions
- Hotel accommodation excluding meals
- Logistics services
Normally a refund must be for at least NOK 2,000; however, if the claim is for a full year or the remainder of a year, the claim can be as little as NOK 200.
The claim must be submitted to the Norwegian Tax Authority by 30 September 2020 for invoices which were raised between 1 January 2019 and 31 December 2019.
Applying for VAT refunds
Application form RF-1032 must be used to apply for VAT refund. The form should be completed electronically in Norwegian, Swedish, Danish or English. The completed form should then be printed, signed and sent to the Norwegian authorities by post.
The form should be accompanied by:
- Copies of the invoices;
- Certificate of Taxable Status from HMRC and
- Letter of attorney (if applying through an agent)
Applications can take up to six months to process.
How can AAB help?
Our Indirect Tax Team can ensure that the claim calculation is accurate and the reclaim application made in full in order to minimise any queries from the Norwegian Tax Authorities.
If you require any further information or support with the submission of a Norwegian VAT claim, please contact Suzanne Yule, Indirect Tax Assistant Manager, or your usual AAB contact.
To find out more about AAB's Indirect Tax team, click here.