VAT and tax in Norway

DKNO Partners advises you and your business

Understanding Norwegian VAT and tax is crucial to running a successful business in the Norwegian market. We guide you through the rules, help you with registration and ensure your business is compliant.

What does VAT and tax mean for your business in Norway?

In Norway, handling VAT and tax correctly is an important part of running a business. All businesses with a turnover of more than NOK 50,000 within 12 months must be registered in the Norwegian VAT register. This ensures that you can charge and report VAT correctly, which also allows you to deduct input VAT.

See how you can calculate your VAT tax here

Tax liability for AS in Norway
If you run a Norwegian AS (Aksjeselskap), the company is tax resident in Norway and must pay tax on all its income, regardless of where it originates. The Norwegian corporate tax (selskapsskatt) in 2025 is 22 % of the taxable income.

VAT registration requirements and benefits

To register your business for VAT, you must first have a Norwegian organisation number and D-number.

Once you are registered, you need to:

Charge 25 % VAT on most goods and services.
Report VAT via the Norwegian VAT system.
Pay Norwegian VAT when importing goods, with the possibility of deductions.

VAT (MVA)

VAT, also known as MVA in Norway, is an important part of a company's finances. The standard rate of 25 % applies to most goods and services, but there are also reduced rates, such as 15 % on food and 12 % on transport and cultural activities. Knowing the correct VAT rates is essential for correct invoicing and reporting.

MVA registration

All businesses with a turnover of more than NOK 50,000 within a 12-month period are required to register for VAT in the Norwegian VAT register. Registration makes it possible to collect VAT from customers and deduct VAT on your own purchases.

Tax rates

The corporate tax rate in Norway is 22 %, which applies to all registered companies. The tax payment is calculated based on the company's profits and must be reported regularly. A proper understanding of the tax system ensures your business stays compliant and avoids unnecessary fines.

What do you need to know about tax in Norway?

As a company in Norway, you must pay tax on your company's profits. The tax rate depends on your company form and type of business. Correct tax reporting also requires ongoing compliance with Norwegian bookkeeping and accounting rules.

Employer liability

If your company has employees in Norway, it is important to comply with the employer liability rules. The company must pay employer's tax (arbeidsgiveravgift), which varies between 5.1 % and 14.1 % depending on the region. In addition, wages and working conditions must be reported to a-meldingen, which is Norway's central payroll system. Finally, the company must offer a mandatory pension scheme (OTP) to employees who fulfil the applicable criteria.

Advance tax and deductibility

All companies in Denmark pay advance tax based on expected profits. The Danish Tax Agency calculates the amount based on previous years' accounts, but it can be adjusted if the company's financial situation changes. There are several deductions that can reduce the tax liability, including operating expenses (e.g. office rent and software), transport and travel expenses, and investments in equipment and machinery, which can often be amortised over time.

Dividend taxation and special rules

As the owner of a Norwegian AS, you are only taxed when dividends are paid, and dividends are taxed at an effective rate of approximately 37.84 % in 2025. It's also important to be aware of regional differences in employer tax and special rules for certain industries, such as the oil and gas industry, where specific tax rules apply.

Tax reporting and financial statement requirements

As a business in Norway, it's important to keep on top of tax reporting and annual accounts to ensure your company complies with legislation and avoids unnecessary fines. Below is a checklist of the most important requirements and deadlines that Norwegian businesses should be aware of

Submission of annual accounts

All companies in Norway must submit their annual accounts to Brønnøysund Registers. This ensures that your company's financial information is recorded correctly and available to relevant authorities.
Submission of tax return

Your company must submit an annual tax return to The Swedish Tax Agency. For companies, the deadline is typically 31 May and it is important to ensure that all information is correct and submitted on time to avoid penalties.
Audit of the financial statements

If your business exceeds certain size thresholds, it is a requirement that the accounts are reviewed and approved by an authorised public accountant. This requirement is especially important for larger companies and ensures the credibility and accuracy of the accounts.
Payment of advance tax

Withholding tax is collected in four instalments throughout the year, based on the company's expected profits. If changes occur in your company's finances, you can request an adjustment of the withholding tax to avoid under- or overpayment.

Get a handle on Norwegian VAT and tax with DKNO Partners

Navigating the Norwegian VAT, tax and business finance regulations can be a complex task, especially when it comes to registration, tax reporting and employer liability requirements. With the right advice, you can ensure your business meets all requirements while optimising the financial opportunities available in Norway.

Do you need further help with the application or registration? Contact us here