The threshold for foreign entities to be considered to have tax, VAT and tax reporting obligations is very low. Even businesses with no presence in Norway may have such obligations merely by conducting sales towards Norwegian clients.
We experience that some businesses are not aware of these obligations. Below you will find a summary of the most common obligations entities with businesses towards Norway may have.
Corporate income tax return
Income from business activities carried out in Norway are taxable according to Norwegian domestic law. The threshold for when a business is considered taxable is very low.
Permanent establishment risks
The tax liability according to Norwegian law might be limited by the tax treaty. The tax treaty regulates in which country a business is considered to have a permanent establishment. If the business is not considered to have a permanent establishment in Norway, the business should not be tax payable to Norway. However, even if no permanent establishment in Norway, reporting obligations in Norway will still apply. If reporting obligations are not fulfilled penalties will apply.
All supply of goods and services within the Norwegian territorial boarder is levied with Norwegian VAT. This also applies for sale of goods and some services from abroad to Norway.
A VAT-registration is mandatory once the sales exceed NOK 50 000 during a 12-month period. Foreign entities with merely sales to consumers may in some cases register under the simplified VOEC scheme.