A warehouse worker moving a shipment of boxes using a hand truck.

January 1st 2017 saw changes to the VAT rules in Norway. The changes have brought favourable liquidity benefits for Norwegian-registered foreign enterprises (NUFs), but the actual requirements on VAT reporting have entailed greater risk exposure and a need for more control in the organization to report the correct import value on customs-cleared goods. A VAT agent who is familiar with Norwegian laws and regulations, and who already has well-established procedures in place, could be an attractive solution for handling the new requirements.


The new VAT rules place new demands on Norwegian-registered foreign enterprises (NUFs)

Previously, figures for net sales had to be reported, but under the new rules in force from January 2017 a VAT return has to be submitted instead. The main changes are in the allocation of responsibility, which no longer lies with the shipping agent but with the VAT-registered company that imports the goods. Goods must still be declared, but the total import VAT will no longer appear on the customs declaration. VAT-registered companies themselves are now responsible for reporting the correct customs value. Moreover, there are now stricter requirements on the accuracy of reported data. For NUFs, the changes entail greater risk exposure, since they place new demands on areas such as competence, reporting, procedures, communication and systems.

A VAT representative is an attractive solution

Rather than investing in competence and resources for dealing with the new requirements, with the risk and the demand on other resources which that entails, a VAT representative could be a simple, interesting solution. Having a VAT representative as a partner is an effective way of ensuring not only that the new requirements are complied with, but also that they are handled in the most favourable way for you as a NUF. It decreases the burden on the organization, while also dramatically reducing or even eliminating the risk of problems in the flow of goods, as well as the risk of non-compliance with laws and regulations.

The long-term advantages of a VAT representative

There are many pitfalls that can easily be avoided by having a VAT representative who is fully familiar with Norwegian laws and regulations. There will continue to be several accounting and tax issues that have to be handled on an ongoing basis, and we believe that having a partner who is familiar with the laws and regulations, and above all who knows which organizations to contact in Norway, is a good idea when problems for NUF enterprises arise. Compliance with laws and regulations is not the only consideration: a knowledgeable VAT representative also knows how to exploit prevailing conditions most favourably for your company, ensuring that the existing resources can be utilised in the most effective way for the organization. This will keep operating costs down, and the flow of goods will be unhindered by non-compliance with the latest demands.

A VAT representative – summary of benefits

Having a VAT representative gives you a partner with unique specialist competence in issues arising in cross-border trade. The representative takes care of accounting and payroll administration in accordance with Norwegian laws and regulations, dealing with the Norwegian authorities for you as a NUF.


Would you like further information about registering a company in Norway, reporting payroll for foreign citizens working in Norway, or dealing with Norwegian VAT?

Please contact KGH Accountancy & VAT Services AS, or go to www.kghav.no.
post@kghav.no  Telefon: +47 69 21 40 00