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ACT
RELATING TO VALUE ADDED TAX
OF 19 JUNE 1969

amended by subsequent Acts, last by Act of 12 December 2003

Chapter I. Introductory provisions

Section 1.
In so far the Storting decides that a tax sha ll be paid to the T reasury on sales of goods and
services at all stages and on importation, the rule s in this Act shall apply unless otherwise laid down
in another Act or in a decision by the Storting relating to the tax.

Section 2.
By goods are meant physical objects, including real property. By goods are also m eant elec-
tric power, water from waterworks , gas, heat and refrigeration.
By a service is meant anything that can be supplied that is not regarded as goods as de-
fined in the first subsection. Also regarded as a service are lim ited rights to physical obj ects or
real property, together with the total or partial utilisation of intangible property.

Section 3 .
By sale is m eant:
1. The delivery of goods in return for a rem unera tion, including the delivery of goods produced on
order or the delivery of goods in connection with the carrying out of se
rvices.
2. The carrying out of services in return for a remuneration.
3. The delivery of goods or the carrying out of se rvices as total or partial return for goods or
services received.

Section 4 .
By output tax is meant tax which is to be calculated and paid on sale and on withdrawals.
By input tax is meant tax on purchase etc. of goods and services or on im portation.

Section 5.
With the exception of the provisions in the Chapters XI, XII, XIX and XX, the Act shall not
apply to:
1. Sales by:
a) Authors through exploitation of the copyrigh t to their own literary and artistic works. T he
same shall apply to sales effected through a middleman in the name of the author.
b) Dental technicians who supply technical products m ade by them selves for use in me dical
and dental treatment.
c) Museum s, theatres, cinem as, organisers of ex hibitions, concerts and m eetings, of catalogues,
programmes, picture postcards and souvenirs.
d) Charitable and public utility institutions and or ganisations, of picture postcards, folders, cal-
endars and other objects of trifling value, provided that such sales are occasional and are part
of the activity of the institution or organisati on concerned. The exem ption also applies to sales
by charitable and public utility institutions and organisations of goods at considerably inflated
prices. The exemptions in the first and second sentences also apply to such sales by a commis-
sion agent.
e) —
f) Idealistic, non-profit organisations and associ ations where contributions are received in the
form of m embership fees, and where these fees cover goods and services that form part of
the organisation’s or association’s idealistic, non-profit activities.
g) Housing co-operatives of mana gement services to an asso ciated housing association.
2. Sale and rental of properties to othe r cinem atographic film than advertising film .
3. Sale of stamps, notes an d coins as collectors’ item s.
The Ministry m ay issue regulations for delim iting and supplem enting the provisions in the
first subsection and may stipulate that the businesse s referred to in the first subsection, 1 f, shall

3

nevertheless calculate and pay VAT if the exemptio n brings about a significant distortion of com-
petition in relation to other, registered, busi nesses that supply equivalent goods and services.

Section 5 a.
With the exception of the provisions in Chapt ers XI, XII, XIX and XX, the Act does not ap-
ply to the supply and letting of real property or rights to real property. The exem ption to the let-
ting of real property also covers the supply of goods and services that are delivered as part of the
letting.
The exem ption in the first subsection does not apply to:
1. the letting of car space in car parks,
2. —
3. the letting of reception room s in co nnection with the serving of foodstuffs,
4. the supply of the rights to use advertising space,
5. hire of storage lockers
6. sale of trees and crops on the root where this does not occur together with the sale of land,
7. sale of the right to extract mineral products and other natural products from land, and also
hunting and fishing rights.
The Ministry may issue regulations for delim iting and supplem enting the provisions in the
first and second subsections.

Section 5 b.
With the exception of the provisions in Chapt ers XI, XII, XIX and XX, the Act does not ap-
ply to the supply of:
1. Health services and healthrelated services, in cluding services as stated in Sections 5-4 to 5-
12 of the National Insurance Act, and ambulanc e services rendered with specifically de-
signed vehicles. T his exem ption also applies to dental technical services. This exem ption
also applies to the procurem ent of such services.
2. Social services, including services as stated in Section 4-2 of the Social Services Act, and
services in children’s and youth institutions. This exem ption also applies to the procure-
ment of social services.
3. Educational services and th e procurem ent of such services.
4. Financial services, including
a) insurance and its brokerage services,
b) financing and credit services, but not financial leasing,
c) execution of paym ent orders,
d) valid means of payment and related brokerage services,
e) financial and similar instruments and related brokerage services,
f) the management of securities funds.
5. Services in the form of entitlement to atte nd theatre, opera, ballet, cinema and circus per-
formances, exhibitions in galleries and muse um s. T he exem ption also covers the entitle-
ment to attend concerts and sports events , and admittance to theme and adventure parks
and centres. This exemption also applie s to the procurem ent of such services.
6. Lottery services.
7. Services rendered as part of the execut ion of the duties of public authorities.
8. Ceremonial services provided in connection with funerals and interments.
9. —
10. The provision of the letting of accom modatio n in connection with ho tel businesses, etc.
11. Guide services and the provision of such services.
12. The right to take part in sports events.
13. Services connected with the serving of foodstuffs in school and student canteens.
14. Services in the form of artistic perform ances and the procurem ent of such services. T his
exemption also applies to services that are an integrated and necessary part of this presen-
tation.
15. Services relating to the operation of com munity alarm system s.
16. —
The exemptions for health and healthrelated services, social and educational services also
cover other services and goods that the institutio n etc. norm ally supplies during the provision of

4

these services. T he exem ption also covers the hiri ng out of labour for the perform ance of those
services covered by the first subsection nos. 1, 2 and 3. The exemption also covers the procure-
ment of labour for the perform ance of the serv ices covered by the first subsection no. 1.
The exem ptions in the first subsection do not apply when the services are supplied or pro-
cured by the provider of electronic com munication service by means of an electronic com munica-
tion and where the paym ent for the service is de manded by the one who carries out the com muni-
cation service.
The Ministry may issue regulations for delim iting and supplem enting the provisions in the
first and second subsections.

Chapter II. Administration of the tax.

Section 6 .
The King shall issue rules for the adm inistration and supervision of the tax.

Section 7 .
Any person charged with a public office, post or task associated with the adm inistration of the
tax under this Act, shall within the lim its im posed by his functions m aintain silence with regard to
what in the course of his work, ha s come to his knowledge , concerning to any person’s business, econ-
omy, capital or earnings and any other financial and personal circumstances that are not generally
known. Nor must he make use of hi s knowledge of such circum stances in his own econom ic activity.
The provisions contained in the first subsecti on shall not prevent inform ation being given to
other public authorities for use in their work with custom s duties and other dues to the State or with
taxes to the State or municipality or for statistical use. Nor shall the provisions contained in the first
subsection apply when the public interest warrant s that the information should be given and the
Ministry agrees thereto. Nor shall the duty of co nfidentiality prevent the exchange of inform ation
(co-ordination) as provided for in Act of 6 June 1997 no. 35 relating to the Register of Business Re-
porting Obligation.
Any person receiving inform ation pursuant to the second subsection is in his turn bound to
observe secrecy thereon.

Section 8.
Any person charged with a public office, post or task as set out in Section 7, first subsection,
shall m ake a written declaration to the effect that he will carry out his office or work im partially and
to the best of his judgem ent and conviction, in acco rdance with the law, and that he will observe the
obligation to m aintain secrecy.

Section 9.
Sales returns and other tax documents shall be retained for at least ten years. The Ministry
shall issue regulations for the m ethod of preservati on and the process to be observed in destroying
the documents.

Chapter III. Liability to pay tax.

Section 10.
Persons engaged in trade or business and liable to registration shall calculate and pay tax on
sales and withdrawals as set out in Chapter IV. In case a person goes bankrupt or dies, the estate
shall be liable to calculate and pay tax on sales and withdrawals effected after bankruptcy
proceedings were opened or death occurred, and to the extent taxability would have been existent on
part of the debtor or deceased. Sales on com mission are considered as sales both by the principal and
the com mission agent. In the case of sales by auctio n, tax shall be calculated and paid by the auctio-
neer.
The rules set out in the first subsection, fir st sentence, shall also apply to co-operative
undertakings which in return for payment directly or through the m edium of dues or grants,
distribute goods or services or effect sales for m embers. It is im material to the liability to pay tax
whether the goods or the co-operative services are invoiced and paid outside the enterprise.

5

Persons engaged in trade or business, who ar e aliens and who have no place of business or
residence in Norway, shall, unless otherwis e provided, calculate and pay tax through a
representative. The representative shall also be liable to pay tax.
Persons in trade or business, who on their own account carry on an activity that involves the
construction, renovation, m odernisation etc. of buildin gs or structures for sale or letting, shall, when
goods and services are used in that activity, calcul ate and pay tax as in the case of withdrawals. The
provisions of Section 14 shall similarly apply.
The King m ay, after calling for an opinion from a consultative com mittee, decide that persons
engaged in trade or business whose activity comes outside the scope of the Act, shall calculate and
pay tax on goods they produce or services they re nder for their own use in such trade or business.
The King will decide what shall be included in the taxable am ount and if and to what extent
deduction may be made for input tax.
The Ministry may decide with binding effect who should be considered as persons engaged in
trade or business according to th e provisions of this Section.
The Ministry may make regulations relating to the im plem entation of the provisions in the
third subsection and prescribing that the tax may be calculated and paid in some manner other than
through a representative.

Section 11.
The State, m unicipality and institutions whic h are owned or operated by the State and m u-
nicipality are liable to tax in the same way as pe rsons engaged in trade or business if they are en-
gaged in the sale of goods or services as set out in Chapter IV.
When such institutions, individually or join tly, are engaged in activities which are aimed
principally at satisfying their own needs, they shall only be liable to pay tax on their sales to others.
In this case the liability to pay tax on withdr awals shall not apply when goods and services are
appropriated by the institution for its own use, an d deduction may be made only for input tax on
goods sold and services rendered to others. The provisions in this subs ection shall not apply to
institutions or any activity organised as jo int-stock com panies, public lim ited com pany, co-operative
societies or organised in accordance with the Act of 25 June 1965 relating to certain State enterprises
tc. e The King m ay, after calling for an opinion fr om a consultative com mittee, decide that the
State, m unicipality and institutions which are ow ned or operated by the State and municipality,
shall calculate and pay tax on goods that are produc ed or services which are rendered for their own
use. The King will decide what shall be included in the taxable am ount and if and to what extent
deduction may be made for input tax.

Section 12.
Several enterprises operated by the sam e owne r shall be regarded as one taxable enterprise.
If special accounts are kept for any single ente rprise as m entioned in the first subsection, the
tax authorities may decide that this part of th e enterprise shall be regarded as one taxable
enterprise. This shall also apply to any enterprise operated by the State, a municipality and an
institution governed by the State or a m unicipality.
Collaborating companies may be regarded as one single enterprise liable to paym ent of tax
when at least 85 per cent of the capital in ea ch com pany is owned by one or several of the
collaborating companies and the companies are re gistered as one entity. All the participating
companies shall then be jointly and severa lly liable for correct paym ent of the tax.
Enterprises operated j ointly by several person s (joint ownership or other form s of j oint enter-
prise) shall be regarded as one taxable enterprise , unless otherwise provided by the tax authorities.

Chapter IV. Sales etc. involving liability to pay tax.

Section 13.
Tax shall be paid on the sale of goods and services that are covered by the Act in accordance
with the provisions in Chapter I.

6

Section 14.
Tax shall be paid when any person engaged in trade or business and liable to registration
withdraws goods or services from the enterprise for private use or for other purposes falling out-
side the scope of the Act. T he sam e shall apply to the withdrawal of services which are liable to
tax in accordance with any regulati ons made pursuant to Section 28 a.
Whenever the right to deduction is not preclu ded according to Section 22, tax shall be paid as
for withdrawal when goods and services from the enterprise concerned are used:
1. For board and in kind remuneration of the owner, m anagem ent, em ployees and pensioned
staff of the enterprise.
2. In work on and running of real property cove ring housing needs, leisure time, holiday or other
recreational needs, including moveables and equi pment for such property. The duty to pay tax
pursuant to this provision does not apply to the building and maintenance of workers’ can-
teens.
3. For entertainm ent purposes.
4. For gifts and for the handing out for publicity purposes.
No tax shall be paid on services rendered free of charge by an individual direct to charitable
and public utility institutions and organization s. The Ministry m ay issue regulations for the
delim iting and carrying into effect the prov ision contained in the preceding sentence.
5. —
Whenever the right to deduction is not preclu ded according to section 22, tax shall be paid as
for withdrawal when passenger vehicles are used for other purposes than as a commodity, a vehicle
used in commercial vehicle hire, or for passenger transport in retu rn for a remuneration. Tax shall
also be paid on goods and services for the maintena nce, use and running of passenger vehicles that
are used for other purposes than m entioned in the first sentence. Cam ping trailers shall be regarded
as passenger vehicles. The Ministry m ay in regulati ons provide for specific conditions as to a m ini-
mum period of ownership and use.
The Ministry may issue regulations stating what is covered by the provisions in the second
and third subsection.
Tax shall not be paid on products withdraw n by a person from his own farm ing with sub-
sidiary activities, forestry and fishing, for priv ate use or for purposes within the fram ework of
these activities. The Ministry will issue regulation s laying down what is covered by farm ing and
forestry.

Section 15.
(Repealed by the Act of 4 March 1977).

Section 16.
Tax shall not be paid on sales of:
1. Goods and services:
a) to foreign countries,
b) for use in sea-areas outside Norwegian territ orial waters in connection with research and
exploitation of subterranean natural resource s or for use in connection with construction,
rebuilding, repair and maintenance of pi pelines between sea-areas and shore,
c) to Svalbard (Spitzbergen) and Jan Mayen
d) for use of foreign ships
The exception for pipelines applies only to la st stage sales and will comprise appertaining
onshore operating plant to such extent as laid down by the Ministry.
2. Goods and services:
a) for use of ships of not less than 15 m etres maxi mum l ength ai rcraf t whe n the y are carryi ng
freight or in return for payment are carry ing passengers in international transport
b) to specialised ships for use in offshore petroleum activities.
The exception in favour of services will appl y only as further provided by the Ministry.
3. Goods and services provided for aircraft as defined in Section 17 first subsection no. 1 c,
on international flights.
4. Transport services within the realm when th e transport is carried out directly to or from a
foreign country. With the exception of the P osten Norge AS’ bulk dispatch of letters to

7

abroad, the provision in the first sentence does not apply to the carriage of overseas mail by
Posten Norge AS.
5. Goods by the person possessing such good for private use or for other purposes which have
not given right to deduction of input tax.
6. Goods and services as part of a transfer of the enterprise or part of the enterprise to a new
proprietor.
7. Newspapers published regularly, with at least one edition per week.
8. Books at the last stage of the sales process. This shall also apply to periodicals mainly sold
to regular subscribers or m ainly distributed to members of a society or association and
periodicals with a preponderantly polit ical, literary or religious content.
9. Electric power and energy supplied fr om alternative energy sources for household
consumption in the counties of Finnmark, Troms and Nordland.
10. —
11. Vehicles covered by the resolution made by the Storting prescribing excise tax on re-
registration, providing the vehicles have been registered in Norway.
12. Services for the account of a foreign assignor to the extent laid down by the
M inistry.
13. Services at the last stage of the sales process concerned with the planning,
projecting, building, repair and maintenance of public roads and the construction of
railways to be used exclusively in public pa ssenger transport, and also manufacturing in
engineering workshops of bridges or parts of bridges to such roads or railways.
14. V ehicle s which e xclusively use electricity for propulsion.
The Ministry may issue regulations regarding:
a) The delim iting, supplem enting and im plem enting of the provisio ns in the first subsection, and
may decide that the exem ption from the duty to pay tax according to No. 2 a) shall be extended
also to cover goods and services for use of other ships in international waters,
b) —.

Section 17.
Nor shall tax be paid on:
1. Sales of:
a) shi ps o f no t less than 15 me tre s maxi mum l ength, intended for the transport of passengers
for paym ent, or for the transport of freight or for towing, salvage, rescue, ice breaking,
vocational fishing or trapping activities, and also specialised ships for use in offshore
petroleum activities,
b) training ships, naval vessels to the National Defence and ships to be used for research and
weather forecasting,
c) aircraft intended for vocational air transport activity and also m ilitary aircraft,
d) oil-drilling platform s and other m ovable platform s for use in the petroleum industry.
Equipment supplied together with ships, aircraft or platform s of the type referred to in No.
1 d) is also included in this provision.
2. Delivery of goods and the rendering of serv ices in connection with repairs, maintenance,
fresh construction or rebuilding of ships, aircr aft and platforms as referred to under No. 1,
including perm anent working equipm ent fo r such ships, aircraft and platforms.
3. The hiring out of:
a) shi ps o f no t less than 15 me tre s maxi mum l eng th for use in international transport, and for
use in dom estic service provided that the ship is intended for the transport of passengers
for a consideration, and also specialised ship s for use in offshore petroleum activities,
b) aircraft as referred to under No. 1,
c) platforms as refe rre d to unde r No . 1.
4. The sale of fishing vessels of less than 15 me tre s maxi mum l ength.
5. The rendering of services by salvage or re scue vessels in connection with the salvaging of
such ships, aircraft or platform s as referred to under No. 1.
The Ministry may issue regulations laying down what is covered by the provisions of the first
subsection.

8

Chapter V. Taxable amount.

Section 18.
The tax shall be calculated on the basis of the consideration for the sale liable to tax. T he
actual tax shall not be included in the taxable amount.
In the taxable amount shall be included:
1. All costs incurred in fulfilling the agreem ent, com prising the cost of packaging, dispatch, in-
surance and the like included in the consideration for which special pay
m ent is dem anded.
2. Customs and excise duties and other dues ac cording to law. This does not apply to tax pursu-
ant to the Storting’s ruling rela ting to non-recurring tax.
3. Dues, fees and other costs incurred in co nnection with the supply of goods or services.
4. Auctioneering fees, com missions and the like.
5. Service dues, service charges and the like.
In the case of such credit purchases as defin ed in the Credit P urchase Act Section 3 No. 1,
credit costs under Section 4 first subsection c in th at Act shall not be included in the basis for tax
calculation, providing the costs are separately stat ed in a sales docum ent. This rule applies only
when credit is given for more than 30 days count ing from the expiry of the m onth of delivery.
For the supply of second-hand goods, works of art, collectors’ item s and antiques, specific pro-
visions relating to the basis for calculat ion of tax are stated in Section 20 b.

Section 19.
If the consideration consists in whole or in part of anything other than ordinary means of
paym ent (barter trade), the price of the goods or se rvices delivered shall be used as a basis. If the
price in such cases is lower than the ordinary sale s value of corresponding goods or services sold in
the business or enterprise, the sales value shall, ho wever, be used as a basis. The same shall apply if
no special price has been agreed, and also in the case of withdrawals and the rendering of a service
or in the production of goods as referred to und er Section 10, fifth subsection, Section 11, third
subsection and Section 14.
If between the supplier and the purchaser of goods and services there exists a com munity of
interests which supposedly may lead to a fixing of th e consideration different from what would have
been the case if such a community of interests h ad not existed, the taxable amount can not be set
lower than the ordinary sales value.
The Ministry may with binding effect lay down what is to be regarded as the ordinary sales
value.

Section 20.
(Repealed by the Act of 20 December 1991.)

Chapter V a. Relating to second-hand goods etc.

Section 20 a.
“Liable dealers” mean businesses that purch ase/acquire second-hand goods, works of art,
collectors’ item s or antiques with the intention to resell them , including sale with com mission and
by auction,
Liable dealers who purchase/ acquire goods as stated in the first subsection m ay, on the
resale of the goods, calculate tax in accordan ce with the regulations in this Chapter.
For the regulations in this Chapter to apply, it is a pre-condition that liable dealers have
acquired the second-hand goods etc. , from a vendor who shall not calculate tax from the sale or
enter the tax in the sales document.
Liable dealers who them selves im port works of art, collectors’ items and antiques may, on
resale of the goods, also calculate tax in acco rdance with the regulations in this Chapter.

Section 20 b.
The basis for the calculation of tax for the supply of goods stated in Section 20 a, first
subsection, is the dealer’s gross profit. The gross profit is the difference between the purchase
price and the sales price. The tax itself is not take n into account in the basis for the calculation of
tax.

9

The basis for the calculation of tax for the su pply of works of art, collectors’ items and an-
tiques that the dealer has him self im ported from abroad, is the dealer’s gross profit. T he gross
profit is the difference between th e purchase price and the sales price. The tax itself is not taken
into account in the basis for the calculation of ta x. The purchase price is the basis for the calcula-
tion of tax as stipulated in Section 62, first subsection.
If the purchase price exceeds the sales price, the difference cannot be subtracted from the
basis for the calculation of tax for other sales, with the exception of those referred to in subsection
six, last sentence.
When tax is calculated in accordance with the regulations in this Chapter, the amount it-
self shall not be entered in the sales docum ent.
In the event of the export of second-hand good s, works of art, collectors’ items and antiques,
the general regulations of the Act apply, with th e exceptions that follow from subsection six.
In the event that tax for a given item in accordance with the first subsection cannot be
calculated, either because of a collective purchas e or sale where the price of the item is not
known, the gross profit for the second-hand goods et c. is not calculated for each individual item,
but rather collectively for the entire reporting period. If the purchase or sale of goods in
accordance with the first sentence constitutes the main part of the dealer’s purchases or sales in
the period, the gross profit for other second-han d goods etc. , where the purchase and sales price
are known, may also be calculated collectively, and for each term. If, in a given term, the value of
purchases exceeds that of sales, the differenc e m ay be taken into account in the collective
purchase value for the subsequent term .

Section 20 c.
The Ministry m ay issue regulations for delim iting, supplem enting and im plem entation of
the provisions in this Chapter.

Chapter VI. Deduction and refund (input tax).

Section 21.
A registered person engaged in trade or busi ness may deduct input tax on goods and services
for use in an enterprise with sales as referred to under Chapter IV from the output tax, unless
otherwise provided by this Chapter. Parts in goods and services procured for, or for use as working
plant in a joint ownership shall also be regarded as goods and services for use in an enterprise,
unless the joint ownership is under an obligation to register in accordance with the provisions of
Section 12, fourth subsection.
In the case of bankruptcy the debtor is entitl ed to deduct input tax on supplies and services
made to him prior to the opening of bankruptcy proc eedings. After that time the right to deduct lies
with the estate. When being engaged in distributing the property of an insolvent estate of a deceased
person, the estate may deduct input tax supplied after the opening of adm inistrative proceedings
from output tax due after this time.
Input tax deducted in respect of a building or structure m ay be reim posed if the building or
structure before com pletion, or within 3 years of co mpletion, is sold, let or otherwise disposed of for
purposes falling outside the scope of the Act. The provisions in the first sentence shall not apply in
the event of decease or bankruptcy or in other circ umstances in which reimposition of tax would be
particularly unfair on the person liable to pay tax.
The Ministry m ay issue regulations relating to reim position of tax as specified in the third
subsection.

Section 22.
The right to deduction does not include input tax on:
1. Expenses concerning catering and the hiring of such prem ises for entertainm ent as m entioned
in Section 5 a, second subsection no. 3.
2. Art and antiques, unless the purchaser sells g oods of the sam e kind in his business or trade.
3. Other goods and services acquired solely for such use as mentioned in Section 14, second and
third subsection.
The Ministry m ay m ake regulations regarding a refund at a specified rate of Value Added Tax
on provisions for use on any single voyage on bo ard vessels engaged in fishing and catching in dis-

10

tant waters other than Skagerak, Kattegat, the Ba ltic, the North Sea, the Norwegian Sea and those
parts of the Barents Sea which are less than 250 nautical miles from the Norwegian coast.

Section 23.
A registered person engaged in trade or business may apportion input tax when goods and
services are acquired for mixed use both in activiti es with sales as mentioned in Chapter IV and in
any action disqualified from deduction pursuant to pr ovisions in this Chapter. This shall not apply to
goods and services of a kind sold in the co urse of his business ac tivity, cf. Section 14.

Section 24.
A registered person engaged in trade or bu siness shall have the surplus amount refunded
when the input tax exceeds the output tax. It is a condition that sales re turns for previous term s
have been submitted.
Even though refund of amount mentioned in the first subsection has not taken place within
the next term , the person concerned shall not be enti tled to enter the amount as a deductible item in
subsequent sales returns.
The excess am ount according to the first subsecti on shall be refunded to the registered person
concerned within three weeks after the sales return s have been received. Such claims for refund
cannot be the subj ect of pawn or transfer.

Section 25.
Input tax which cannot be justified by the subm ission of vouchers is not deductible.

Section 26.
The Ministry may issue detailed regulations re garding the right of deduction and the basis for
the apportionment of input tax according to Sectio n 23 and may in this connection prescribe that a
deduction shall not be m ade when the taxable sale is insignificant in proportion to the other
activities. T he Ministry m ay also issue regulation s to the effect that a deduction may be made
without apportionment when the sales not covered by Chapter IV of the Act are insignificant in
relation to the other activities.
The Ministry may issue regulations for the carr ying out of the provision in Section 25 for co-
operative undertakings.

Section 26 a.
Persons engaged in trade or business who are aliens and who are not liable to registration
in Norway are on application entitled to refunds of input tax, provided:
1. the input tax relates to the purchase of goods or services in Norway, or im ports of goods
into Norway, for use in the enterprise, and
2. the sale abroad would have entailed liabilit y to registration or the right to voluntary
registration according to Chapter VII of the Value Added Tax Act if the sale had taken
place in Norway, and
3. the input tax would have been deductible if the enterprise had been registered in Norway.
A decision concerning a refund can be chan ged by the authority that took the decision. A
change in disfavour of the person towards whom th e decision is directed can only be made if new
information shows that the previous decision was incorrect. A decision to make a change accord-
ing to the first and second period can be made up to ten years after the firs t decision relating to
the refund.
A decision concerning a refund can be chan ged by a superior tax authority. Notice of a
change in disfavour of the foreign enterprise must be given within two years of the date when the
inferior tax authority made its decision.
If contrary to the first subsection tax has been refunded or the am ount of tax paid out is too
high, repayment can be demanded of the incorrectly refunded amount, plus interest, according to
the rules for the payment of value added tax accord ing to the present Act. Incorrectly refunded
amounts plus interest can be o ffset in connection with subseque nt applications for refunds.
The Ministry may make it a condition for re funds that the applicant’s home country allows
corresponding refunds of value added tax or othe r sales taxes to Norwegian persons engaged in

11

trade or business. The same applies to refunds of value added tax on goods and services for the
use of lorries registered or dom iciled abroad and used for transport to and from abroad.
The Ministry may issue m ore detailed regulations concerning the im plem entation,
delimitation and supplementation of this provision, including laying down more detailed
conditions for refunds.

Chapter VII. Registration.

Section 27.
A person engaged in trade or business who is engaged in sales covered by Chapter IV of this
Act or who is liable to tax according to Section 10, second, third, fourth and fifth subsections, Section
11 and Section 12, fourth subsection, shall unsolicit ed and without delay submit written notice re-
garding his activity to the tax authority in the co unty where he has his place of business or his place
of residence if he has no place of business. Such notice shall also be submitted when the activity
ceases.
In bankruptcy and when a Court is in charge of the settlem ent of the estate of a deceased
person whose liabilities have not been accepted by his heirs, the adm inistrator, or in the latter case
the Court shall give notice of the opening as well as the conclusion of the proceedings. The Ministry
may issue further regulations regarding the duty to submit such notices, and on whom this duty
shall be incumbent when the activity ceases. A notice to creditors issued in the adm inistration of an
estate shall have no effect on a tax demand made under this Act.
The Ministry m ay likewise issue regulations regarding the content of such a notice.

Section 28.
Registration shall take place when the taxabl e sales and withdrawals of the person engaged in
trade or business have totally exceeded 50 000 NOK over a period of 12 months. Charitable and pub-
lic utility institutions and organisations shall be oblig ed to register under the provision of the preced-
ing sentence when sales and taxable withdrawals of goods and services have totally exceeded 140
000 NOK over a period of 12 months. Those businesses that are obliged to register pursuant to the
Business Registration Act must be enrolled in the Register of Business Ente rprises before registra-
tion, in accordance with the first an d second sentences, can take place. The tax authorities may per-
mit registration before the tim e specified in the first, second and third sentence under special cir-
cumstances.
If a person who is liable to registration com es under administrative proc eedings as a result of
bankruptcy, the estate shall, regardless of the am ount-lim it in the first subsection, be filed as a regis-
trant under a separate number with effect as from the tim e proceedings were opened.
If the person concerned carries out activities in several places, the tax authorities shall decide
where he is to register.
A registered enterprise shall remain regist ered for at least two complete calendar years
after registration or after sales and taxable with drawals have fallen below the lim it of the am ount
mentioned in the first subsection, unless the acti vity in question has ceased or the County T ax
Inspector for special reasons sanctions its deletion from the register. T he person concerned shall
subm it sales returns and pay the tax even though sales and withdrawals do not exceed the m ini-
mum lim it.
The Ministry m ay issue regulations delim iting or su pplem enting the provisions in the first subsec-
tion.

Section 28 a.
The Ministry m ay issue rules to the effect that persons engaged in trade or business selling
services other than those m entioned in Chapter IV may be registered on application, and may in this
connection lay down detailed condit ions for voluntary registration. The Ministry may, when issuing
rules for voluntary registration, disp ense with the condition laid down in Section 28, first subsection,
where special circum stances exist.
Voluntarily registered persons engaged in trade or business shall be liable for tax on sales of
services covered by the voluntary registration , unless otherwise stipulated by the Ministry.

12

Chapter VIII. Returns of sales etc.

Section 29.
Persons liable for taxation shall subm it to the tax authorities returns showing:
1. Total sales and withdrawals.
2. Sales and withdrawals on which, pursuant to Sections 16 and 17, no tax is to be paid.
3. Output tax.
4. Input tax entitled to deduction.
5. Account of output and input tax.
All am ounts m ust be rounded down to the nearest krone (NOK).
Returns shall be signed by the person liable to tax or by a person capable of legally binding
him and shall contain a declaration to the effect th at the returns are in conform ity with registered
and documented accounts information and the actual circumstances involved.
The Ministry shall stipulate the form on which such returns shall be mad
e.
Rules for returns from persons engaged in ag riculture with subsidiary activities, forestry
and fishing, shall be laid down in deta iled provisions issued by the Ministry.
The Ministry m ay stipulate in regulations that the returns m ay be sent electronically and
specify the term s and the form for electronic filing. The Ministry m ay also lay down rules on sign-
ing, authentication, integrity and confidentiality at electronic filing, use of service suppliers, the
format of the electronic returns, approval of software and terms fo r rejecting inadequate returns.
Otherwise, the Value Added Tax Act applies correspondingly.

Section 30.
Returns shall be made on a terminal basis, each term comprising two calendar months. The
first term shall be the months of January and Febr uary, the second term March and April, the third
term May and June, the fourth term July and Au gust, the fifth term Septem ber and October, and
the sixth term Novem ber and Decem ber.
The Ministry m ay agree to the use of long er term s where special circum stances exist.
In the event of the input tax regularly exceedin g the output tax by at least 25 per cent, the tax
authorities m ay agree to a division of the calendar year into 12 terms. The tax authorities may also
agree to shorter terms, though not less than one week, provided that the input tax regularly exceeds
the output tax by at least 50 per cent. Agreement shall norm ally be given for 24 m onths, including
the first monthly or corresponding term.

Section 31.
Persons engaged in agriculture with subsidia ry activities and forestry shall submit annual
returns. Annual returns shall be submitted to the tax authorities, and the tax, after the accounting,
shall be paid within 3 months and 10 days af ter the expiration of the calendar year.
The Ministry m ay agree to the use of shor ter term s where special circum stances exist.
The Ministry shall issue regulations stipulatin g who com es under the scope of the first subsec-
tion.

Section 31 a.
Persons engaged in trade or business who ar e obliged to register and who have low turn-
over, may submit an annual VAT return. The Mini stry may issue regulations for delimiting and
im plem entation of the provis ions in the first sentence.

Section 32.
Amounts as mentioned in Section 29 shall be included in returns for the term during which
they are entered in the accounts, according to acco unting regulations pursuant to the Act relating to
Annual Accounts etc. (Accounting Act) unless the Ministry decides to the contrary.
Where special circum stances exist the Ministry may agree that the payment date is used as
basis for dividing sales and taxes on the terms.

Section 33.
Returns must reach the tax authorities with in 1 month and 20 days after the expiration of
each term or from the date when the activities cease. Returns sent through the post shall be

13

considered to have arrived in time if they bear a postmark antedating the expiration of the time-
lim it.
Unless the tax authorities decide otherwise, returns shall be submitted for each term, even
though during one or m ore term s there have been no sales liable for taxation.

Chapter IX. Falling due and paym ent of tax.

Section 34.
Tax shall fall due for paym ent at the expiration of the tim e-lim it for subm itting returns
according to Section 31, Section 33 and Section 40.
Tax laid down according to Sections 55 and 56 and supplementary tax according to Section 73
shall be paid at the latest on the 20th day after th e expiration of the m onth when notification of the
decision has been posted.

Section 35.
Tax shall be paid:
a) to the T ax Collector, or
b) to a bank authorised by the Ministry as a bank to which the tax can be paid.
The Ministry m ay issue regulations to the effect that tax am ounts due and outstanding credit
am ounts which are less than a specified lim it shall not be paid or refunded.
The Ministry may issue regulations relating to payment arrangements and to banks’ obliga-
tion to refuse paym ents m ade with insufficient inform ation.

Section 36.
On tax amounts paid after payment ha s fallen due, interest shall be paid.
If a refund is m ade after the tim e-lim it laid down in Section 24, third subsection, the person
engaged in trade or business shall be entitled to compen satory interest.
The Ministry may issue regulations regardin g the calculation and payment of interest and
compensatory interest.

Section 37.
When a decision is made to make a stipulat ion according to the provisions of Chapters XIII
and XIV, interest shall be calculated from the time the tax should have been paid according to
Section 34 up to the tenth day after the expiration of the m onth in which notification of the decision
is posted. If the payment has been made before the decision was taken, interest shall be calculated
up to the tenth day after the expira tion of the m onth of the paym ent.
When the stipulation shows that the excess amounts that have been paid out in
accordance
with Section 24 are incorrect, interest on the exce ss amounts paid out shall be calculated from the
expiration of the tim e-lim it for m aking the return in the period concerned up to the tenth day after
expiration of the m onth in which notification of the decision is posted. If th e disbursed excess am ount
is repaid within the tim e-lim it for subm itting return s, interest shall be calculated from the day of
disbursement and up to the tenth day after the expiration of the m onth of repaym ent.
The provision as to the calculation of interest according to the first subsection shall not apply
to additional tax.
On amounts due according to the first and second subsections and on additional tax due,
interest shall furthermore be paid until payment is made.
The Ministry may issue regulations regard ing the calculation and payment of interest.

Section 38.
When a tax am ount is reim bursed in whole or in part, resulting from a com plaint or a
reduction of tax pursuant to Section 56 or a de cision by or a settlem ent in a law-court, the
reimbursement shall also include interest. Furtherm ore, com pensatory interest shall be paid on the
reimbursement amount stipulated, as from the time tax was paid in.
If tax amounts are refunded in cases other th an those m entioned in the first subsection, the
Ministry may grant compensatory inte rest under special circumstances.
The Ministry may issue regulations regardin g the calculation and payment of compensatory
interest.

14

Chapter X. Special rules for sales of raw fish.

Section 39.
The fisherm en’s sales to or through fisherm en ‘s sales organisations established under the Act
relating to the Sales of Raw Fish of 14 December 1951, a lower rate for output tax may be stipulated.

Section 40.
Fishermen shall submit annual returns.
Annual returns shall be submitted to the tax au thorities, and tax after the accounting shall be
paid within 3 months and 10 days after expiration of the calendar year. Returns which show an
excess of input tax shall be treated as claims for a refund of tax.
The Ministry may under special circumstances give its consent to the use of shorter term s.
In the case of average, great loss of equipm ent and the like, the Ministry m ay, for the benefit
of fishermen who are obliged to submit annual retu rns, give its consent that input tax shall be
refunded before expiration of the actual calendar year.
The duty of submitting returns and of settlin g the tax rests with the shipowner, skipper or
fisherm an who is either in charge of supplying fish to the sales organisation or other buyer, or who
receives payment on behalf of the boat or fisherman.

Section 41.
If a fisherm en’s sales organisation as mentio ned in Section 39 has only been an interm ediary
in, or has only authorised the fisherm en’s sale of fish, the organisation shall calculate and pay tax on
the remuneration received.
In other respects the provisions of this Ac t shall apply to fishermen’s sales organisations.
The Ministry m ay issue regulations for the im plem entation of the provis ions of this Chapter,
including what com es under the provisions of the fir st subsection of the present provision and decide
with binding effect what is to be considered as “being an intermediary” and “authorising”.

Chapter XI. Rules for book-keeping and justification.

Section 42.
(Repealed by the Act of 21 Dec 2000)

Section 43.
Persons engaged in trade or business and liable for registration are considered liable for tax on
their sales to the extent that they do not establis h by means of orderly book-keeping, vouchers, notes,
contracts, correspondence and copies of invoic es or in any other way authorised by the tax
authorities, that they are not liable to pay tax on sales.

Section 44.
A sales document pertaining to taxable goods and services cannot be issued prior to delivery
unless, otherwise provided for by the Ministry.
A person not registered with the tax author ities must not under any circumstances enter the
tax amount on the sales document. Nor in such cases should they inform by means of price
specification that paym ent includes VAT pursuant to this Act.
If in contravention of the second subsecti on the tax am ount has been entered in a sales
docum ent, or too large a tax am ount has been entered, or for the sale of goods and services which are
not liable to tax an amount has been entered as tax, the incorrectly entered amount shall be paid
according to the rules for payment of tax under this Act. The payment may be avoided if the error is
corrected in the custom er’s favour.

Section 44 a.
The Ministry m ay issue regulations to the e ffect that associations and organisations (co-
operative undertakings) which m ainly sell products re sulting from their m embers’ fishing, forestry or
agriculture with subsidiary activities, may enter the tax amounts in their settling of accounts with
suppliers who are not registered with the tax auth orities. The Ministry shall issue detailed regu-

15

lations concerning the conditions for the carrying out of this arrangement, and may decide that the
arrangement shall similarly apply to other purchasers and producers.
The Ministry may also rule that the provision in the first subsection, first sentence, shall apply
to dealers in products from handicraft and domest ic crafts work carried out at hom e even though
their sales are not m ainly concerned with such products.

Section 45.
The Ministry may issue regulations relati ng to the obligation to register and the
docum entation of accounting inform ation, including the contents of sales docum ents for those obliged
to submit returns pertaining to th eir business pursuant to this Act, or in accordance with provisions
pursuant to this Act in so far as the amounts re ferred to are to be included in the tax return.

Chapter X II. Relating to general co mpulsory inform ation and the obligation
to provide inform ation, figures etc ., for the purposes of examination.

Section 46.
Persons who are obliged to subm it returns pertai ning to supplies pursuant to this Act, or to
provisions pursuant to this Ac t, shall without delay submit, supply or transmit account books,
vouchers, contracts, correspondenc e, board records and auditors’ reports and other documents of
im portance for auditing the tax whenever the ta x authorities so demand. He shall also provide
com plete inform ation on circum stances which the authorities consider im portant for the
examination. This also applies to those who are requ ired to keep accounts pursuant to Section 1-2,
third subsection of the Accounting Act.
The person engaged in trade or business and such persons as are in his service or assist
him, shall render the necessary help and assist ance and make access available to office and
business premises. This also applies to those who ar e required to keep accounts pursuant to Section
1-2, third subsection of the Accounting Act.
Persons engaged in trade or business other than those mentioned in the first subsection
shall, whenever the tax authorities so demand, transmit a copy of their annual settlements and
provide the requested inform ation regarding their activities. This also applies to copies of the
annual accounts and annual report if these are available.

Section 47.
A person engaged in trade or business shall, when so requested, give the tax authorities
information with regard to any financial transa ction which he has or has had with other named
persons engaged in trade or business when such tr ansactions involve activities of both parties.
Inform ation and specified figures may be dem anded regarding deliveries and purchases of goods,
services, payment and other circumstances connected with the transaction and payment for it. The
provisions in this subsection also apply where sales have been effected through a middleman.
In the case of persons engaged in trade or business who carry out sales or purchases on
commi ssi on, the tax autho rities may de mand a l ist of the persons commissioning such sales and
purchases. From persons commissioning such sale s and purchases a list may be demanded of the
interm ediaries that have been com missioned. F igures m ay also be dem anded showing the scope of
sales involved in the com mission over a specified period of tim e.
From production, sales and transport organisa tions, including associations and bodies whose
activity involves stipulating and testing of qua lities, quotas or prices, the tax authorities m ay
dem and verification figures concerning outstandin g accounts resulting from the organisation’s own
activity or activity that has taken place with its co-operation or under its supervision.
The Ministry m ay decide that inform ation and verification figures as m entioned in this Section
may also be called in for groups of unspec ified persons engaged in trade or business.
The provision in Section 46 shall similarly appl y to persons liable to provide information and
figures according to the first, second an d third subsections of this Section.

Section 48.
Banks, insurance companies, mortgage an d credit associations, savings associations,
stockbrokers, solicitors, barristers and others who have sum s of m oney to adm inister for som e other
person or who m ake a living by providing loans, sha ll be obliged at the request of the tax authorities

16

to supply information with regard to the mean s being administered on behalf of named person
engaged in trade or business and their yield, and al so about deposit and debi t accounts, deposits and
other financial transactions involving such nam ed person. P ostal operators are obliged, at the
request of the tax authorities, to provide inform ation regarding the dispatch of money by insured
letter on behalf of a named person, estate, com pany or institution.
The County Tax Inspector may make inquiries or request information concerning funds being
administered on behalf of a named person engaged in trade or business who is liable to registration
or has registered voluntarily and regarding the finan cial yield of such funds, and concerning deposit
and debit accounts, deposits and other financial transactions involving such nam ed person. The
Directorate of T axes or any person so authorised by the Directorate m ay require inform ation from or
make inquiries in the institutions mentioned in the first subsection concerning any unnamed person
engaged in trade or business who is liable to registration or has registered voluntarily.
The person who is the subj ect of the investig ation shall render the assistance necessary for
carrying out the check and shall be obliged in th is connection to m ake available for inspection
documents, account books and registers which ma y be of im portance in the investigation.

Section 48 a.
When special circum stances deem it necessary , and there is suspicion that the provisions
provided by or in support of this Act have been contravened, the Directorate of Taxes can instruct,
or issue power of attorney to instruct, busine sses that supply access to telecommunications net-
works or services to provide inform ation as to the names and addresses of subscribers who do not
otherwise have generally accessible telephon e, telefax or personal bleeper num bers.

Section 49.
Any person who causes work to be carried out on a building or structure, is obliged, when so
requested, to name and to the extent mentioned in Section 47, first subsection, second sentence,
provide the tax authorities with inform ation regard ing the work and his financial transaction with
the contractor, artisan, architect, consultant and any other persons who have taken part in the work
on their own account.
Any person who has participated in the work – cf. the first subsection – is sim ilarly under an
obligation to provide inform ation about such work and his financial relations with the owner and the
em ployer.

Section 49 a.
Businesses and public institutions that have given a foreign business an on-site assignment
for building or assem bly work shall, unsolicited , provide the County T ax Inspector in the county
where the work is carried out, with inform ation regarding both the assignment and each
contractor who has performed an assignment in co nnection with the main project. Information to
be submitted shall include the contractor’s na me, address, registration number in the tax
register, the date on which the assignm ent is anti cipated to start and be completed, the location
at which the assignment shall be carried out, and the contracted amount as stated in the
contracts entered into by the principal.
The information shall be submitted as soon as possible after the contract has been entered
into, and not later than 14 days after the work has begun.
If those obliged to subm it returns have prov ided equivalent inform ation, including the con-
tractor’s registration num ber in the tax register, to Central Office – Foreign Tax Affairs in accor-
dance with Section 6-10 no. 1 of th e Assessm ent Act, the obligation to subm it returns will be consid-
ered fulfilled.

Section 50.
The local Controller of Assessm ents shall uns olicited provide the tax authorities with any
information that is available and of importance fo r a tax audit. The local Controller of Assessm ents
may also provide such inform ation for use in the collection of tax under this Act.
Public authorities, public bodies etc., as well as officials, shall be obliged on request from the
tax authorities to provide inform ation which they ha ve been acquainted with in the course of their
work and shall also to such exte nt as necessary provide transcri pts, copies of documents etc.
Irrespective of the obligation ot herwise applying to maintain secrecy:

17

a) any authority which is concerned with the assessment and collection of taxes, customs and
excise duties and the paying out of com pensa tory amounts, subsidies, grants, benefits,
allowances etc. shall on request from the ta x authorities provide inform ation regarding any
amount that has been established, collected or paid out and the grounds on which it is
founded,
b) any authority entrusted with supervisor y functions under the Act of 14 June 1985 No. 61
on Trade in Securities shall on request from the tax authorities provide inform ation they
have acquired in this work, providing the givi ng of the information is compulsory pursuant
to statutory provisions,
c) any authority entrusted with supervisor y functions under the Act of 16 June 1989 No. 53
relating to Land and Estate Agents shall on request from the tax authorities provide
inform ation they have acquired in this work,
The Ministry may issue regulations to the effe ct that inform ation shall be provided pursuant
to second and third subsection a), b) and c) with regard to a not named person, estate, company or
entity.
The regulations m ay prescribe that inform ation for use in direct checking of a taxable person’s
returns shall be available in machine-readable form.

Section 51.
The obligation to provide inform ation according to the provisions of this Chapter rests in a
individual enterprise with the proprietor; in a com pany, association, institution or sim ilar body with
the day-to-day m anager of the enterprise or the chai rm an of the board of directors, where no such
manage r e xists.
In the case of estates which advertise for cre ditors, the shareholders, probate j udges, executors
and others who are involved in the settling of the estate, shall be obliged to provide the inform ation
which the tax authorities consider necessary in orde r to decide whether tax is owed by the estate
under this Act.

Section 52.
The Ministry may direct anyone who has not com plied with the obligation to provide
inform ation or figures for the purpose of such audi ting as mentioned in Sections 47-49 of this Chap-
ter, to provide the inform ation dem anded under the threat of a daily fine.
Injunctions to companies, asso ciations, bodies or organisation s shall be addressed to the board
and shall be sent in a registered letter to each m ember. The fine m ay be collected from m embers of
the board as well as from the company, association, body or organisation.
The collecting of the fine pursuant to this Sect ion shall be effected by distraint. The fine shall
accrue to the Treasury.

Section 53.
Any person who is obliged to provide figures or inform ation under the provisions of this
Chapter, shall organise his book-keeping or make notes in such a way that the inform ation can be
provided.

Chapter XIII. With regard to the discre tionary raising and stipulation of tax.

Section 54.
When sales returns have not been rendered in tim e or in the prescribed form , the output tax
for the term concerned may be raised by at least 250 NOK or up to 3 per cent of the tax amount. The
tax may not, however, be raised by more than 5 000 NOK. The increase may be made up to 3 years
after the expiration of the term concerned.
Even though a return has been rendered in ti me and in the prescribed form , output tax can be
raised in the sam e m anner for as m any as the three last term s, if the account books etc. have not
been submitted, made available or sent in upon request.
When the tax authorities have directed anyo ne to keep his books in conform ity with the
accounting legislation in force and these directions have not been com plied with at the expiry of the
tim e-lim it, the output tax for the term concerned m ay be raised in accordance with the provision in
the first subsection, first and second sentence. If th e directions have not been com plied with even at

18

the expiry of the next term, the tax for this term may be raised similarly. The same rule shall apply
to the following terms, though no t fo r mo re than o ne ye ar.
Advance notice under Section 16 of the Act of Public Adm inistration is not necessary in the
case of m easures according to the first and second subsection.

Section 55.
The basis for calculating output tax and the amount of input tax may be stipulated on a
discretionary basis when:
1. Sales returns have failed to come. Returns received after the decision to make a discretion-
ary assessment is taken, shall be regarded as not received according to this provision.
2. Returns received are found to be incorrect or incom plete or are based on accounts which are
found not to have been kept in accordan ce with accounting legislation in force.
3. Som eone has been registered by the tax auth orities not in accordance with the conditions
for registration, thereby causing a loss of tax revenue for the State.
If discretionary assessment involves more than one term, it may be made jointly, though not
covering a longer period of tim e than one calen dar year. The assessment shall be motivated at the
sam e tim e as when the decision to make an assessment is taken.
Assessment can be undertaken up to 10 years after the expiration of the term involved.

Section 56.
Any increase made in accordance with Se ction 54 and any assessment made in accordance
with Section 55 may be changed by the authority th at has made the decision. A change in disfavour
of the person towards whom the decision is directed, can only be undertaken if new information
shows that the previous assessment was incorrect.
A decision according to the first subsection, se cond sentence, may be ta ken up to 10 years after
the expiration of the term involved.
A decision to make an increase pursuant to Section 54 or an assessment pursuant to Section
55 may be changed by a superior tax authority. Notice of a change in disfavour of the person liable to
tax must be given within 2 years of the date when the inferior tax authority m ade its decision.

Chapter XIV. Com plaints.

Section 57.
Decisions pursuant to Chapter XIII and Sectio n 73 can be brought before the Board of Appeal
for Value Added Tax. Appeals to the Board where th e value of the object of appeal is less than NOK
15 000, excluding interest, will not be considered wi thout the consent of the Board’s chairman. This
decision cannot be appealed. Appe als not brought before the Board will be determined by the
Directorate of T axes. T he Ministry shall decide wh at body shall act as the complaint instance for
other decisions pursuant to this Act.
The Board of Appeal shall consist of a chairm an and four other members, each with a deputy,
who shall all be appointed by the Ministry.
The Ministry may determine that the Board of Appeal shall be organised into two sections.
Both sections shall then be constituted in acco rdance with the provisions in subsection 2.
A quorum of the Board of Appeal shall consist of at least three m embers, one of whom shall be
the chairm an or his deputy. In the event of a ti e, the chairm an shall have the casting vote. T he
chairm an and his deputy shall be qualified district court judges.
The Ministry shall issue detailed rules on th e organisation of the Board of Appeal and its
procedure.

Section 58.
Com plaints concerning decisions pursuant to Section 55, first subsection No. 1, will not be
dealt with unless the complainant at the same time as making the complaint, submits sales returns
in the prescribed form covering the term to which the decision applies.
Complaints concerning decisions under Chapter XIII and Section 73 shall not be dealt with if
the authority which has m ade the decision m odifies it so that it corresponds to the claim asserted in
the com plaint. In cases where the com plainant’s cl aim is not fully met, the new decision shall con-

19

stitute the basis for dealing with the com plaint, after the complainant has been given the opportu-
nity of stating his view.

Chapter XIV a. Relating to binding prior statements.
Section 58 a.
The Directorate of T axes m ay, at the reques t of a taxable person, provide prior statem ents
regarding the tax-related consequences of specific dealings in advance of their im plem entation.
This applies only when it is of m ajor significan ce to the taxable person to clarify these conse-
quences prior to im plem entation, or where the Direct orate of T axes finds that the case is of public
interest.
If required by the taxable person, prior statem ents provided under this Chapter shall be
binding if the dealings in question are conducte d within the terms and conditions of the state-
me nt.

Section 58 b.
The conditions regarding binding, prior statem ents do not apply in respect of the im port of
goods as stated in chapter XVI.

Section 58 c.
A fee shall be paid for a binding, prior statement.

Section 58 d.
The Directorate of T axes’ decision not to provide binding, prior statem ents cannot be the
subj ect of appeal.
A binding, prior statement can neither be the subj ect of appeal or brought before a court of
law.
Decisions for which binding, prior statements form the basis, may be the subject of appeal
or be brought to court in accordan ce with other applicable provisions.

Section 58 e.
The Ministry may issue regulations for supple menting and im plem entation of provisions in
this Chapter, including those related to fees.

Chapter XV. Collection and legal process.

Section 59.
Tax claims under this Act, together with intere st and costs, can be collected by distraint. The
same applies to claims for excessi ve amounts according to Section 24 which have been incorrectly
paid out.
The tax claim may be enforced even though it s basis has been appealed against or brought in
before a court of law.
Claims for refund of excessi ve amounts relating to the payment of the Value Added Tax cannot
be subject of pawn or transfer.

Section 59 a.
If the statutory lim itation of a tax claim is suspended on pain of legal enforcem ent pursuant
to the provisions of Section 17 of the Statutor y Limitation of Claims Act of 18 May 1979, subse-
quent interest payable on the claim rem ains due until the lim itation itself has expired.

Section 60.
When a person liable to tax intends to take up residence abroad and stay there for at least six
months, he shall be obliged before leaving, to pay or deposit security for all tax am ounts for which he

20

is or will be responsible to the State. If circumst ances exist which make it probable that the person
liable to tax intends to take up residence abroad fo r the period of tim e m entioned without paying or
depositing security for the tax, the Tax Collector can through the Police impose a ban on his leaving
the country.

Section 61.
When a Court of Law finds that the person li able to tax shall only pay part of a disputed tax
am ount or shall only have refunded part of a ref und claim , and sufficient inform ation does not exist
to establish the correct amount, the Court findings shall indicate how a new tax amount is to be
arrived at. In the case of disputes brought in befo re the Distraint Court, the same shall apply so that
the m easure is confirm ed for the am ount that will em erge from a stipulation of the tax am ount in
accordance with the order or j udgem ent of the Court.
If a Court finds that a tax claim cannot be main tained owing to form al defects, the decision is
referred to the tax authority concerned for reconsideration.

Section 61 a.
The Ministry m ay m ake regulations to the effe ct that a tax demand against an alien who has
failed to register through a representative when bo und to do so, may be enforced against the person
who has received the article or service.

Chapter XVI. Im port.

Section 62.
Tax on goods imported from abroad, Svalbar d (Spitzbergen) and Jan Mayen shall be paid at
the im portation. The basis for calculating the tax sha ll be stipulated in conform ity with the rules for
the stipulation of the custom s value of goods for which an ad valorem duty is to be paid.
A lower basis for the calculation of tax is stipul ated to the im port of works of art, collectors’
items and antiques, than that stipulated in the first subsection.
In the case of reim port of goods after refinem ent, processing or repair abroad, the tax shall be
calculated on the cost, including the cost of transport both ways.
Customs duties and other charges, including im port dues, shall be included in the tax basis
according to detailed rules la id do wn by the Ministry.
The Ministry may issue regulations for tax fr ee im port of goods which in accordance with
special provisions can be im ported duty free, and more detailed regulations relating to lower bases
for the calculation of tax according to th e provisions in the second subsection.

Section 63.
Tax shall not be paid on the import of goods as stated in Section 5, subsection 1, no. 3, Sec-
tion 5 b, subsection 1, no. 4 d, Section 16, subsec tion 1, no. 7, 8 and 15, and Section 17, subsection
1, no. 1. Nor shall tax be paid on the reimport ation of ships, aircraft, oil drilling platforms and
other movable platform s used in the petroleum ac tivities, including fixed operational equipm ent
in cases stated in Section 17 subsection 2.
Artists m ay im port free of tax their own origin al works of art. This also applies to importa-
tion through an intermediary as stat ed in Section 5, subsection 1 a.
The Ministry m ay issue regulations relating to the delim iting and supplem enting of the
provisions in this Section.

Section 64.
The tax shall be paid by the person who, und er the Customs Act of 10 June 1966 no. 5 is the
owner of the goods. Sections 37, 38, 57, 58, 59 an d Section 69 of the Customs Act shall be similarly
applied as far as tax according to this Act concerned.

Section 65.
The tax shall be collected by the Custom s authorities. The Custom s Act Section 9 shall be
sim ilarly applied to tax under this Act.

21

Section 65 a.
The Ministry m ay issue regulations concerning the paym ent of tax on services im ported
from abroad and which become liable when supplie d in the dom estic m arket. T he Ministry m ay
issue more detailed regulations relating to the delim iting, supplem enting and im plem entation of
such liability to pay tax.

Section 66.
The Ministry shall issue detailed regulation s for calculation, colle ction and supervision.

Chapter XVII. Various provisions.

Section 67.
The local Controller of Assessments shall assist in establishing and m aintaining the census of
registered persons engaged in trade or business.

Section 68.
The P olice shall be obliged to render assistan ce in connection with the supervision, including
the m aintenance of the register. T he P olice m ay demand information and the handing over of
material as dealt with in Section 46.

Chapter XVIII. Remission etc. of tax.

Section 69.
The Ministry may reduce or remit tax when on account of decease, particularly serious or
protracted illness, permanent incapacity or other reasons it would be particularly unreasonable or
disproportionately oppressive to insist on the wh ole amount. This shall also apply to interest and
additional tax levied upon a person under this Act.

Section 70.
The Ministry m ay in whole or in part m ake ex emptions from the duty to pay tax under this
Act when special circumstances exist.

Section 71.
The Ministry m ay list as expenses tax amounts which cannot be collected.

Chapter XIX. Penalties and additional taxes.

Section 72.
1. Any person who wilfully gives the tax authorities incorrect or incom plete inform ation in returns or
in figures or specifications, and who thereby evades ta x or obtains an undue refund shall be punished
as for fraud under Section 270 and Section 271 in th e Penal Act. Prosecutions for contravention of
these provisions com e in the first instance und er the j urisdiction of the district courts.
2. Any person who wilfully fails to register under the provisions in Chapter VII, or
fails to submit returns in compliance with the prov isions in Chapter VIII or Chapter X, or contra-
venes the provisions regarding book-keeping and ju stification in Chapter XI, or the provisions con-
cerning the obligation to provide inform ation in Chapter XII, shall be punished with fines or
im prisonm ent for a period of up to three m onths. The same applies to any contravention of
regulations issued pursuant to these provisions or to regulations relating to the registration and
docum entation of accounting inform atio n issued pursuant to this Act.
If a person has intentionally evaded tax or ob tained an undue refund he shall be sentenced to
im prisonm ent for a period of up to three year s, and fines m ay be em ployed together with
im prisonm ent.
3. Any person acting as accessory to the contra vention shall be punished in the same manner as if
contravening.
4. If contravention pursuant to this Section has been effected negligently, fines shall be used as
punishment.

22

5. These provisions shall apply in so far as the offence is not covered by more stringent penal
provisions.

Section 73.
Any person who wilfully or negligently cont ravenes this Act or any regulations issued
pursuant to this Act, with the result that the Trea sury has been or could have been deprived of tax,
may be ordered to pay an additional tax up to 100 pe r cent over and above tax stipulated according to
Sections 55 and 56. Such an order can be given up to 10 years after the expiry of the term in
question. The provisions in Se ction 56 shall apply similarly.
As far as responsibility according to this Sectio n is concerned, any person liable for tax shall be
responsible for the actions of a ssistants, spouse and children.

Chapter XX. Transitional rules and coming into force.

Section 74.
Tax under this Act shall be paid according to the rules in force at the tim e of delivery. If tax is
to be paid on import, it shall be paid according to th e rules in force at the tim e of custom s clearance.
If before the com ing into force of this Act or subsequent tax impositions, a contract has been
entered into for delivery of goods, the recipient sh all be obliged to pay a supplement corresponding to
the tax or the increased tax, unless it can be est ablished that in stipulating the price the tax has
been taken into consideration.

Section 75.
The Ministry may issue regulations containi ng rules necessary for the supplementing and
carrying into effect of this Act.

Section 75 a.
When special grounds exist the Ministry may on application allow exem ption from the
provisions set out in Chapter IX relating to fa lling-due and paym ent of tax. The Ministry may lay
down conditions for such exem ption.

Section 76.
Chapter VII of this Act shall come into fo rce on 1 October 1969. In other respects the Act
shall come into force on 1 January 1970.

23

No. 1

Regulations relating to the obligation to keep accounts and book -keep in g for bu sin esses
that are subject to the provisions of the VAT Act.

(Not applicable to the businesses of ag ricultur e and assoc iated ac tiv ities, for estr y and fisher ies.)
(Stipulated by the Dir ectorate of Tax es on 20 Aug ust 1969 under the pr ovisions of the VAT Ac t, Sec tion 47,
and the Inv estment Tax Ac t, Sec tion 7, an d deleg ation of author ity of 9 July 1969.)

I. The obligation to keep accounts.

Section 1.
Businesses that provide supplies as described in Chapter IV of the Act on Value Added
Tax of 19 June 1969, shall keep accounts in accordan ce with the provisions of the Accounting Act.
The accounts are to be organised in such a manne r that the tax authorities may, at any time,
verify the correct calculation of VAT and investment tax.

II. Regulations that specifically concern VAT.

Section 2.
Businesses that provide both taxable and tax- exem pt supplies of goods and/ or services
must keep the tax-exem pt supplies separate from the taxable supplies in their accounts. The tax-
exem pt sales m ust be substantiated according to further provisions by the controlling authorities.

Section 3.
Businesses must either set up separate accounts for each of the item s that are to be stated
in the tax returns, or keep supplem entary books, or draw up an overview that clearly shows how
the am ounts in the tax returns may be identified in the account books. T he accounting or the
sim ilar overview m ust be organised in such a manne r that it is clear from the accounting material
whether and to what extent the supplies provided and the trader’s own withdrawals of good
s and
services have been subj ected to tax com putation, whether the input tax has been deducted, and
moreover how the output tax and th e input tax have been produced.

Section 4.
Within the deadline for subm ission of the te rm’s tax return, the business must undertake
a settlem ent of taxes, where the accounts or ov erviews corresponding with the am ounts on the
turnover returns, are to be balanced.
This balancing is to be entered into a separat e book if the amounts do not directly appear
on the entered accounts.
For each year an overview must be kept of output tax and input tax allocated on the ac-
counts to which the taxes refer. The overview is to be balanced against th e submitted returns for
the reporting periods and stored for 10 years.

Section 5.
The tax returns are to be written out in du plicate to be kept together in storage.

Section 6.
Withdrawals of goods and services for use in the trader’s own business, and on which
taxes are to be paid pursuant to Chapter IV of th e Act, shall, concurrently, be entered as item s in
the accounts or entered into a separate book.

24

III. General provisions.

Section 7.
The accounting books shall, at all tim es, be satisfactorily up-to-date in accordance with
what is de emed to co mply with go od acco unting practice .
In- and outgoing paym ents in cash should, if possible, be entered into the cash book on the
day they occur.

Section 8.
Business that sell goods and/or services that are subject to different rates of value added
tax, shall substantiate their cash sales with the cash register, terminal or other equivalent sys-
tem , or with duplicates of dated, pre-num bered sa les vouchers. The sales must be registered in
such a manner that the amounts to be taxe d at different rates are clearly stated.
Businesses not included by the first subsection and that do not substantiate their daily
cash sales in a satisfactory manner with dated pre-num bered sales slips in duplicate (or sim ilar
sales vouchers) or dated cash register sales slips, shall keep a book for the calculation of each
day’s cash turnover. T he book shall be bound and the pages numbered before being taken into
use. Ink or indelible pencil shall be used for en tering amounts, and the book shall contain the
following inform ation for each day:

Counted cash balance at the end of the day NOK
+ paid out this day, specified, i.e., under the following m ain item s:
Payme nts to supplie rs NOK
C ash purchase s fo r go ods ”
Wages, freight, other expenses paid ”
Instalme nt o n lo an ”
Private withdrawal ”
NOK
– Counted cash balance at start of day ”
Paid in during the day NOK
– paid in, not from cash sales, specified, i.e., under the following
main ite ms:

P aym ents from custom ers on credit sales NOK
Trader’s in-payments and outlays for the business ”
Paid in as re nt o r othe r things no t co nne cte d with the busine ss ”
Total cash sales for the day NOK

When using dated, pre-numbered sales slips in duplicate and/or dated cash register add-
ing slips, a cash balance at the end of every day mu st also be carried out, with the result entered
into a settlem ent book, in order for the cash turnov er to be deemed substantiated in a satisfactory
manner.
The statements are to be dated and signed by the person who has counted the cash.

Section 9.
An account book shall be kept, or another sa tisfactory system must be em ployed, for re-
cording outstanding accounts with creditors and debt ors. Recording is also to be carried out in
cases of cash settlement for supplies between trade rs, so that both separately and in accumula-
tion it is shown how m uch has been received from , or supplied to, any other trader in the course of
the year.

Section 10.
A separate book must be kept, or another sa tisfactory system m ust be em ployed, for the
recording of goods and services for private use, ta ken out of the business by the trader. This also
applies to services perform ed in re muneration for goods and services.
For each instance of withdrawal of goods/ serv ices for private use, an entry must be made
stating the date, which goods/ services have been withdrawn with a specification of the type,
quantity and price. Such entries shall be made on the sam e day as the goods/ services are with-

25

drawn, and each month the entries are to be credi ted to the turnover account and debited against
the private account.

Section 11.
An account book must be kept, or another sa tisfactory system m ust be em ployed, for the
recording of supplies to executives who have a m anagerial position in the company. This also ap-
plies to shareholders in companies with 10 or fewe r shareholders. A separate account is to be kept
for each shareholder/ executive.
The supplies shall be substantiated with vouche rs or by entry into a separate book, show-
ing the date of supply, the date of paym ent and wh ich services have been supplied with a specifi-
cation of the type, quantity and price.

Section 12.
In the event that goods or services are exchan ged, such transactions are to be entered into
the books concurrently. The value of the services re ceived is to be charged to the purchase account
and credited to the account of the relevant cust om er or supplier. T he value of the supplied ser-
vices is to be credited to the turnover account an d charged to the account of the relevant custom er
or supplier.

Section 13.
Taxes on losses on outstanding claims, which were previously com puted, m ay only be de-
ducted on the turnover return if the loss has b een written off on the account of the individual
customer. A list must be kept of receivables that are written off with a specification of the date,
name, and reference to any account number. If only a part of the total outstanding amount has
been written off, the oldest part of the rece ivable is deem ed to be written off first.
A list m ust b e k ept of incoming p ayments related to receivables previously written off
with a specification of the nam e, date, and reference to any account number.

No. 2

Regulations relating to the cont en ts of sales d ocu men ts etc.

(Issued by the M inistr y of Financ e 14 Oc tober 1969 in pur suanc e to Sec tion 45 of the Ac t relating to Value Added
Tax of 19 June 1969)

Section 1.
In connection with the sale of goods and serv ices to other enterprises, registered enter-
prises shall issue a sales docum ent (invoice, note or bill). A contract note, statem ent of account or
voucher issued by the recipient of the goods or service is also considered a sales docum ent. The
obligation to issue a sales docum ent also applies wh en a payment in advance or a part payment is
entered as a sale.

Section 2.
A sales document must be numbered and dated and state:
a) The name and address of the enterprise suppl ying the goods or performing the service.
b) The organisation number allocated pursuant to Act no. 15 of 3 June 1994 relating to the
Central Coordinating Register for Legal Entities, followed by the letters MVA.
c) The name and address of the enterpri se receiving the goods or service.
d) A clear description of the goods or service.
e) The quantity or extent of item s supplied or perform ed.
f) The am ount paid for the goods or service.
g) The place of delivery of the goods or service.
A part of an enterprise which according to the second subsection of Section 12 of the Value
Added Tax Act is regarded as separately liable to tax shall use the organisation num ber allocated
to the whole enterprise in pursuance of the Act relating to the Central Coordinating Register of
Legal Entities, followed by the letters MVA. An enterprise which has been included in a joint

26

registration according to the third or fourth su bsection of Section 12 of the Value Added T ax Act
shall use the separate organisation num ber allocated to it in pursuance of the Act relating to the
Central Coordinating Register of L egal Entities, followed by the letters MVA.
In connection with sales of snow scooters as me ntioned in Section 3 of the Ministry of Fi-
nance’s Regulation of 25 October 1971 relating to the definition of the expression “passenger
cars”, the registration num ber of the snow scooter shall be stated in the sales docum ent. T he
same applies to the sale of goods and services for the operation, maintenance, repair, upgrading
and alteration of such vehicles.
A procurer of services can issue sales docum ents for several suppliers in one sales docu-
ment. A common number seri es can be used for such sales documents.
The Directorate of T axes m ay under special ci rcum stances perm it the requirem ents in the
first, second and third subs ection to be departed from.

Section 3.
In connection with the sale of goods and servic es between registered enterprises, the sales
docum ent shall specify the am ount of the paym ent less tax and the am ount of the tax unless oth-
erwise laid down in the present Regulations.
In connection with sales to m unicipalities wh ich are entitled to com pensation for value
added tax according to the Act relating to Co mpensation to Municipalities and County Munici-
palities for Value Added Tax in respect of purchas es of certain services from registered enter-
prises, the sales docum ent shall specify the am ount of the paym ent less tax and the am ount of the
tax.

Section 4.
In connection with sales from a retailer to an other registered enterprise, the sales docu-
ment m ay show the am ount of the paym ent including tax and the am ount of the tax.
In connection with sales from registered ente rprises to retailers, the Directorate of Taxes
may for the individual branch of trade permit th e showing of the am ount of the paym ent includ-
ing tax, and the amount of tax.
The Directorate of T axes m ay furtherm ore agree to make the provision in the first subsec-
tion correspondingly applicable to the transport of goods.

Section 5.
A registered enterprise m ay always dem and th at the sales docum ent show the am ount of
the payment less tax and the amount of the tax, cf. Section 3.

Section 6.
If a sales document comprises both taxable and exem pt sales, including sales which fall
outside the scope of the provisio ns in Chapter IV of the Value Added Tax Act, the amounts relat-
ing to the taxable sales shall be entered and adde d together separately. The same applies if tax-
able sales include supplies with different rates.

Section 7.
In so far as they have been m ade effective, previously agreed but conditional rebates shall
be deducted from the basis for the ca lculation of output and input tax.

Section 8.
In connection with barter, cf. Se ction 3 no. 3 of the Value Added Tax Act, it is sufficient for
one of the parties to the exchange to issue a sa les document, provided th e sales document also
contains information concerning the nature, am ount and price of the goods/ services taken in ex-
change. In the joint sales document, the amount of value added tax must be entered separately in
respect of each party’s selling price in the exchan ge, provided the goods/services supplied or taken
in exchange are liable to value added tax.

Section 9.
Enterprises which are not registered with th e tax authorities m ust not unless otherwise
provided enter output tax in their sales docum ents.

27

Section 10.
Sales documents must be issued in at least tw o copies, one of which shall be retained by
the supplier.

Section 11.
Sales documents must be clearl y legible. T ogether with other docum ents, they m ust be
kept system atically arranged in this country for at least ten years after the end of the accounting
year in question.
The Ministry of Trade and Shipping may exem pt anyone who according to the Accountancy
Act is under a legal obligation to keep accounts fr om the obligation to store the docum ents or lay
down a shorter period for their storage. The Direct orate of T axes m ay do the sam e in respect of per-
sons not obliged to keep accounts according to the Accountancy Act.

No. 12

Regulations relating to the calculation and collection of value added tax on the
importation of goods

(Stipulated by the M inistr y of Financ e on 12 Dec emb er 1975 under the pr ovisions of the VAT Ac t, Sec tion
62, fifth subsec tion, and Sec tion 66.)

I

Chapter 1. Basis for calculation of value added tax.

Section 1 .
At the time of importation, V AT is to be calculated in accordance with the regulations for
the determ ination of the value of the goods for du ty purposes. At the tim e of re-im portation of
goods after refining, processing or repairs overseas, the tax is to be calculated on the expenditure,
including expenses for transmission back and forth.

Section 2.
The basis for calculation shall include custom s duties and other dues charged by the cus-
toms service at the time of importation.

Section 3.
At the time of importation of cinematographic film other than advertising film , VAT is to
be calculated on the reproduction value of the film copies, without addition of the payment for the
right to show the film s. Expenses for subtitling of the film s overseas shall be included in the tax
base. T he im porter is obliged to issue a statem en t on whether subtitling has been carried out or
not.

Section 3a.
At the tim e of im portation of works of art, collectors’ item s and antiquities, a lower basis
shall be used for the calculation of taxes than the basis established under Section 1.
Included in the grouping “works of art, co llectors’ item s and antiquities” are the goods
mentioned in Ministry of Finance’s regulations on the sale of second-hand goods, works of art,
collectors’ items and antiquities, Sections 5-7.
The basis for calculation at the tim e of im po rtation as m entioned in the first subsection
above, is 20 per cent of the basis of ca lculation established under Section 1.

28

Chapter 2. Tax-exempt importation of goods.

Section 4.
VAT shall not be calculated on goods that ar e im ported free of duty pursuant to the Cus-
tom s Tariff introductory provisions, Section 11 no s. 1-20 and nos. 24-29, Section 13 and Section 14
nos. 1-8, no. 10 and no. 14, and Section 17 no.1 c regarding goods that have been repaired free of
charge overseas.
The Customs authorities may demand a deposi t or other security for the value added tax
on goods that are im ported tem porarily, exem pt of duty pursuant to Customs Tariff introductory
provisions, Section 14.

Section 5.
Neither is value added tax to be calculated on:
1. Gift parcels/packages valued at less than NOK 1000. The exception does not apply to al-
coholic beverages or tobacco (including cigarette paper).
2. Other parcels/packages valued at less than NOK 200. The exception does not apply to
alcoholic beverages or tobacco (including cigarette paper).
3. Art and museum objects that are imported directly for approved, publicly funded muse-
um s and collections, to the sam e extent that custom s duties are exem pted.
4. Baggage belonging to UN representatives an d foreigners with diplomatic passports and
Norwegian laissez-passer, to the sam e extent that custom s duties are exem pted.
5. The United Nations’ information material, prov ided that it is received free of charge and
is not to be sold in this country.
6. Visual and audio material of an educational, scientific and cultural nature, to the sam e
extent that custom s duties are exem pted.
7. Documents and printed matter from the author ities of a Nordic country, to the sam e ex-
tent that custom s duties are exem pted.
8. Equipm ent for use in tim ber rafting in Norwegian/ Swedish watercourses, to the sam e
extent that custom s duties are exem pted.
9. Tourist promotion material for re-exportation or consumption in this country, to the same
extent that custom s duties are exem pted.
10. Equipment and provisions belo nging to overseas scientific expeditions, to the sam e extent
that custom s duties are exem pted.
11. Theatre costum es, stage sets and other stage props for loan or hire and later re-
exportation, to the sam e extent that custom s duties are exem pted.
12. Printing plates and matrices in regula r subscription that are imported duty-free by
newspapers and by press agencies or similar in stitutions acting on behalf of newspapers.
13. Motor vehicles that are imported duty-fr ee in connection with the owner moving into
Norway.
14. Spare parts and necessities, including cabin equipm ent as well as service goods for aero-
planes, to the extent that the Directorate of Custom s and Excise grant exem ption from
duties.
15. Animals which:
a. are im ported tem porarily for breeding purposes,
b. are imported temporarily for participat ion in contests and/ or exhibitions,
c. are im ported tem porarily in connection wi th the owner’s temporary stay in Norway,
d. are owned by persons resident in Norway , and which are re-imported after a temporary
stay abroad,
e. are im ported in connection with the owner m oving to Norway, provided that the value of
the animal does not exceed NOK 2000.
16. Human organs, blood and similar that are im ported by hospitals or medical laboratories
for use, examination and/or control.
17. News pictures in ordinary letter dispatches and in express letter dispatches to picture
bureaux and press agencies that are register ed in the VAT census, cf. the VAT Act, Chap-
ter VII.
The exemption embraces ordinary pictures on paper, as well as transparent pictures on
film basis (overheads, colour slides and sim ilar).

29

18. Editorial m atter in ordinary letter dispatches and in express letter dispatches to newspa-
pers, magazines and periodicals (technical/prof essional) issued by newspapers, publishers,
organizations and institutions registered in the VAT census, cf. the VAT Act, Chapter VII.
The exem ption em braces proofs of articles, repo rts, short stories and serial stories with
any associated illustrations, strip cartoons, as well as advertisem ent originals (pasted
texts with attached pictures).
19. Pharmaceutical preparations that are distribu ted free of charge for clinical testing, where
exem ption from registration is granted by the Norwegian Medicines Control Authority.
20. Flight simulators, and parts and components of these for use in connection with civil avia-
tion.
The Directorate of Custom s and Excise m ay grant exem ption from VAT to goods
that are duty-free in accordance with the Custom s Tariff introductory provisions, Section 11 no.
23, provided that the exporter and importer is one and the sam e person, institution or com pany.

Section 5a.
Of electric power that is im ported from abroad, no VAT is calculated upon importation.

Chapter 3. Refund of VAT.

Section 6.
The Directorate of Custom s and Excise cannot refund VAT to businesses that are required
to register pursuant to the VAT Act, or that are voluntarily registered in the VAT census, if noth-
ing to the contrary is determined.

Section 7.
For businesses other than those that are requir ed to register and those that register vol-
untarily, the following regulations on refund apply:
A. The Directorate of Custom s and Excise or whoever it authorises, m ay refund VAT on
goods, which within one year from the im po rtation are re-exported overseas in an unal-
tered condition, if the goods are sent in error, ordered by m istake, delivered too late or are
not in accordance with the recipient’s order. The sam e applies to re-exportation of goods
as stated in the Customs Tariff, Section 14, no. 4 and no. 9.
B. Upon re-exportation of goods that were receiv ed for hire or loan, the VAT is refunded with
a deduction of 5 per cent for each month or part of m onth since custom s clearance.
C. The provisions under B above apply similarly upon re-exportation of construction m achin-
ery, construction or transport material, that have been im ported by overseas businesses
for tem porary use in this country. T he sam e applies to the re-exportation of goods stated
in the Customs Tariff, Section 14, nos. 11-13.
D. If errors are m ade in tariffing, or there is a miscalculation, or incorrect quantity determi-
nation or value assessm ent, the provisions of the Customs Act, Section 59, apply.
E. The Directorate of Custom s and Excise or whoever it authorises, m ay in other cases re-
fund VAT on goods that are re-exported within one year from the date of im portation, in
cases where the custom s duties are or could have been refunded.

Chapter 4 On credit for VAT at importation .

Section 8.
The Directorate of Custom s and Excise or whoev er it authorises, m ay grant credit for VAT
that is charged upon importation accord ing to the provisions of this chapter.

Section 9.
Credit may be granted to single persons as well as to firms that have customs credit.

Section 10.
According to further provisions by the Direct orate of Customs and Excise, the applications
shall provide inform ation necessary for the evalua tion of the creditworthiness of the applicant.

30

Firm s applying for credit shall always provid e inform ation about who is the general man-
ager/managing director, and on the com position of the board.

Section 11.
The Directorate of Custom s and Excise or wh om soever it m ay authorise, m ay dem and se-
curity for VAT. Security may be dem anded in the form of:
A. Surety by a Norwegian bank, or
B. Surety by an insurance company that is auth orised to carry on business in this country, or
C. Surety by another credit company approved by the Directorate of Custom s and Excise.
If it em erges that the pledged security does not give sufficient cove r for continued credit,
the recipient of the credit sh all pledge further security.

Section 12.
Credit granted may at any time be revoked. The reasons for the revocation must be
stated.

Section 13.
The Directorate of Custom s and Excise or whoev er it authorises, m ay refuse the granting
of credit for VAT upon importation of consignmen ts when the value of the consignm ent does not
exceed NOK 5 000, and the dispatch is otherwis e exempt from customs duties and taxes other
than VAT.

Section 14.
For applicants who are granted credit under these regulations, the settling day for
amounts placed and charged to their account during a calendar month, is to be fixed at the 18th
of the next calendar month. If this date falls on a Saturday or holiday/festival day, the settling
day is considered to be the first ensuin g working day. There are no days of grace.
Credited am ounts are deem ed to be paid on tim e when it appears from receipts issued by
banks, the postal service or the custom s cashier in Oslo, that the am ounts owing have been paid
not later than the due date.

Section 15.
Interest shall be paid on tax amounts that are not paid on time. The interest rate shall be 3
percentage points above the interest rate at any time fixed in regulations pursuant to Section 3, first
subsection, first sentence, of the Act of 17 Dece mber 1976 No. 100 on Interest on Overdue Payments.
The interest is to be calculated from th e settling-day and until payment is discharged.
Interest amounts below N OK 50 shall not be claimed.

Chapter 5. Special provisions on security.

Section 16.
As a rule, security is not demanded upon granti ng of credit to traders with custom s credit
who are registered under the VAT Act.

Section 17.
The Directorate of Custom s and Excise, or wh om soever it m ay author ise, m ay require the
provision of security if the VAT due is not paid at settling-day.

II

The regulations come into force on 15 Decemb er 1975. With effect from the same date, the
regulations of 25 September 1970 on the calculation and collection of VAT upon importation, with
amendments of 25 February and 13 October 1975 are repealed.

31

No. 18

Regulation relating to proportional deduction s in res pect of input tax according to the
Act relating to Value Added Tax.

(Issued by the M inistr y of Financ e 20 Dec ember 1969 in pur suanc e of the fir st subsec tion of Sec tion 26, c f.
Section 23, of the Act relating to Value Added Tax .)

Section 1. Basis of apportionm ent.
The basis for the apportionment of input tax according to Section 23 of the Value Added
Tax Act is the intended use of the goods or servic es in the part of the business which falls within
the scope of the Act. The person engaged in trade or business can claim a deduction in respect of
input tax on the part of the purchase price whic h is proportional to this supposed use.

Section 2. Building and m anagem ent of buildings.
If it can be assumed that the building costs can be divided more or less evenly among the
square metres of floor space devoted to various us es, the input tax on the construction of a build-
ing can be apportioned on the basis of the propor tion between the floor space intended for use in
the part of the business which falls within the scop e of the Act and the building’s total floor space.
The same applies correspondingly to ex tensions, additions and alterations.
The sam e apportionm ent as m entioned in the first subsection can be applied to propor-
tional deductions in respect of input tax on ov erall m aintenance and repairs. The sam e applies to
tax on other expenses relating to the m anagem ent of the building. If a different distribution of
such expenses has been agreed with the tenants, this can be used as the basis for the apportion-
me nt.

Section 3. Overall operating expenses.
Of input tax on goods and services acquired for use as a whole in the overall operation of
the enterprise, a deduction can be claimed in re spect of a part corresponding to the proportion
between the enterprise’s taxable sales and total sales in the past accounting year.
Sales means sales excluding value added tax.

Section 4. Limitation of the right to proportional deduction.
If the taxable sales are insignificant in propor tion to the other activities, no deduction can
be made in respect of any part of the input tax on goods and services acquired for the use of the
activities as a whole. This prov ision does not apply to businesse s whose main sales derive from
services that are covered by the exem ption provisio n for financial services pursuant to Section 5 b
no. 4 of the Value Added T ax Act.
If the sales which are not covered by the Act are insignificant in proportion to the other
activities, a deduction can be made without apporti onment of input tax among acquisitions for the
use of the activities as a whole.
Sales are considered as insignificant if they do not norm ally exceed 5 per cent of the total
sales of the business.

Section 5. Various provisions.
The provision in Section 1 can be applied corresp ondingly to input tax on electricity, fuel
and telephone services acquired as a whole for business and private use.
The provisions in Section 2 can be applied corre spondingly to the building etc. by persons
registered as engaged in trade or business of prem ises intended in part to m eet needs for housing
or leisure, holiday or other recreational needs, cf . Section 14 second subsection no. 2 of the Value
Added Tax Act. By “taxable sales” in Sections 3 and 4 is mean t sales covered by the provisions in Chapter
IV of the Value Added T ax Act.

32

The Ministry of F inance has issued the follo wing comments and guidelines concerning the
provisions in Sections 1 – 5 above of the Regulation:

Comments on Section 1.
The right to deduction according to Section 21 of the Act only extends to input tax on
goods and services for use in business activities wi th sales as mentioned in Chapter IV of the Act.
A registered person engaged in business and trade who also carries on activities which fall out-
side the scope of the Act, for instance the letting of prem ises, hotel activities, passenger transport
etc., is not entitled to deduction in respect of inpu t tax on acquisitions for use in that part of the
activity. T he person engaged in business or trad e m ust therefore in his or her accounts distin-
guish clearly between purchases according to their use in the activity. If the item or service was
acquired for use in the activities as a whole, a proportional dedu ction can be claimed according to
Section 23 of the Act.
The basis for the calculation of the proportional deduction is the supposed use of the good
or service in the part of the activity which falls within the scope of the Act.
In some cases, only a limited part of the asset is put to the use of the part of the activity
which falls within the scope of the Act. An example would be a commercial building part, of which
the person engaged in the business lets. In other ca ses, an asset as a whole is put to the joint use
of both parts of the activity, as in the case of a hotel laundry which at the sam e tim e does washing
for both the hotel operation and the restaurant operation.
When calculating the proportional deduction, the person engaged in business or trade will
have to exercise sound co mmercial judgement. As a rule, the calc ulation has to be made before the
goods or services are put to use. As an aid in th e exercise of judgem ent, he or she will be able to
make use of previous experience of the use of co rresponding goods or services. In general, he or
she must aim at an apportionment of costs whic h accords with the standards of good business
practice.
With regard to groups of goods and services wi th the sam e proportional use in the part of
the activity which falls within the scope of the Act, the person engaged in business or trade can
use the sam e proportion when calc ulating the proportional deduction in respect of input tax. This
applies for instance to purchases of office equipm ent, office m aterials etc. for use in the j oint ad-
ministration of the activities, or j oint purchases of necessary equipm ent etc. for m eans of trans-
porting goods and conveying passengers.
On certain conditions, Sections 2 and 3 of the Regulation perm it the use of specific propor-
tions when calculating the proportional deduction in respect of acquisitions relating to the build-
ing and management of buildings and purchases for use as a whole in the overall operation.
The accounts m ust show how the proportional deduction has been calculated, cf. Section 3
of the Regulation issued by the Directorate of Taxes relating to the obligation to keep accounts
and book-keeping.
The provisions concerning proportional deduct ions do not apply to goods and services of a
kind sold in the course of the bu siness activity, cf. the last senten ce of Section 23. A full deduction
of input tax on such goods and services can be clai med. If any of them are to be put to use in the
part of the business activity which falls outside th e scope of the Act, output tax shall be paid ac-
cording to the withdrawal rule in the first subsection of Section 14.

Comments on Section 2.
The provision in the first subs ection is likely to apply especially to com mercial and other
buildings with more or less uniform standards in the various storeys. T he condition for applying
the provision is that the building costs can be assumed to be practically evenly distributed among
the square m etres of floor space devoted to the various purposes. T he building costs in question
here are those charged to the owner. F urnishing and equipment costs chargeable to individual
tenants cannot be included. Building costs include th e costs of preparing the site and the costs of
road, water supply and sewerage construction etc. The sam e applies to expenses for installations
and special furnishings or equipm ent in the build ing, such as lifts, heating and ventilation sys-
tems, etc.
A share of corridors and other common areas in the building for use in the part of the
business which falls within the scope of the Act, is also considered a floor space.

33

The provision applies correspondingly to extens ions, additions and alterations for use in
the activity as a whole.
If the conditions for applying the provision in the first subsection are not met, the propor-
tional deduction must be calculated in a ccordance with the provision in Section 1.
According to the second subsection, the propor tional deduction in respect of input tax on
joint maintenance and repairs can be calculated on the basis of the propor tion between the floor
space for use in the part of the activity which fa lls within the scope of the Act and the building’s
total floor space. Norm ally to be considered as joint m aintenance and repairs are work on the
exterior and interior work relati ng to common corridors and storag e space, joint pipeline system s,
etc.
The sam e proportions can also be used for prop ortional deductions in respect of input tax
on other operating expenses relating to the build ing, such as charges for water, chimney sweep-
ing, street sweeping and snow clearing, waste disposal, joint cleaning, heating, etc.

Comments on Section 3.
The goods and services in question here are on ly those acquired for use as a whole in the
joint operation of the activities. All acquisitions exclusively for use in the part of the activity
which falls within the scope of the Act carry full deduction rights, whereas the right to deduction
does not com prise acquisitions solely for use in the rest of the business.

Comments on Section 5.
If goods or services are purchased for use as a whole in an activity which falls within the
scope of the Act and for private use, a deduction can be claimed in respect of input tax according
to Section 21, while tax is payable on withdrawals for private use according to the first subsection
of Section 14. For practical reasons, the first su bsection of Section 5 of the Regulation perm its
proportional deductions in respect of input ta x on electricity, fuel and telephone services.
According to Section 22 of the Act, the right to deduction does not comprise input tax on
goods and services acquired exclusively for use as m entioned in the second subsection of Section
14. According to the last-m entioned provision, tax shall be paid as for withdrawal when the goods
and services from the enterprise are used for the pu rposes m entioned there. In these cases, too, it
will for practical reasons be appropriate to perm it proportional deduction with regard to the
building etc. of com mercial prem ises which are al so intended to m eet the housing needs of the
owner of the enterprise or its em ployees. In such cases, Section 2 of the Regulation can be applied
correspondingly.

No. 24

Regulation relating to the sale of goods and services for use abroad, etc.

(Issued by the M inistr y of Financ e 23 Febr uar y 1970 in pur suanc e of litr a a of the last subsec tion of Sec tion 16,
cf. liter as a, c and d and no. 2 of the fir st subsec tion an d the sec ond subsec tion of Sec tion 22 and Sec tion 75, of
the Act relating to Value Added Tax ..)

Chapter 1. The sale of goods and services for use abroad, on Svalbard and Jan Mayen, and on
foreign ships and aircraft.

Section 1.
On conditions as m entioned in Section 2, registered persons engaged in business or trade
shall not pay value added tax (zero-rate) on the sa le of goods to abroad, Svalbard and Jan Mayen,
and for the use of foreign ships and aircraft as me ntioned in Section 17 first subsection literas a-c
of the Value Added T ax Act.
Regarded as equivalent to sales to abroad are
a. —
b. the sale of goods as gift consignm ents to recipients resident abroad or staying on Svalbard
or Jan Mayen,

34

c. the delivery of advertising or propaganda mate rial which the registered person engaged in
business or trade sends direct to abro ad on behalf of a Norwegian client.
Advertising publications printed in foreign languages and advertising films with foreign
speech which are intended for use abroad are, subj ect to more detailed conditions laid down by
the Directorate of T axes, exem pt from tax even if delivered from the prin ter/advertising film pro-
duce r to a clie nt in No rway. (Se e R egulatio n no . 35.)

Section 2.
The condition for the tax exem ption in the firs t subsection of Section 1 where the sale is
concerned of goods for the use of foreign ships and aircraft as mentioned in Section 17 first sub-
section literas a-c of the Value Added Tax Act, is that the goods are delivered to the foreign ship
or aircraft in question. Otherwise the condition for the tax exemption in the first subsection of
Section 1 is, where nothing to the contrary has been decided, that the goods are cleared for export
by the Custom s.
The condition for the tax exem ption in the second subsection of Section 1 is that the seller
has the goods cleared for export by the Custom s.
In connection with tax-free sales according to th e first and second subsections of Section 1,
a seller effecting a consignment to abroad can, unl ess obliged to present a com pleted export decla-
ration to the Custom s, use a m ail receipt book as docum entation of the export.
The Directorate of T axes m ay issue m ore deta iled rules concerning authentication of the
tax-free sale. (See Regulation no. 35. )

Section 3.
If goods have been re-sold to abroad by a regi stered Norwegian purchaser before he or she
has taken delivery of the goods, the supplier of the goods can supply it free of tax provided it is
directly cleared for export by the Customs.
The Directorate of T axes m ay issue m ore deta iled rules concerning authentication of the
tax-free sale. (See Regulation no. 35. )

Section 4.
In airport transit lounges, value added tax shall not be paid on the sal
e of
1. alcoholic beverages, tobacco products, choc olate and sweets, perfum es, cosm etics and toi-
letry,
2. other goods to persons resident in other countries than Denmark, Finland, Norway or
Sweden.
The Directorate of T axes m ay issue m ore deta iled rules concerning authentication of the
tax-free sale. (See Regulation no. 35. )

Section 5.
Notwithstanding the provision in the first subs ection of Section 22 of the Value Added Tax
Act, a registered person engaged in business or tr ade can claim a deduction in respect of input tax
on goods for use as gifts to abroad and for distri bution abroad for advertising purposes. Nor shall
tax be payable on goods as mentioned as on with drawals according to the second subsection of
Section 14 of the Value Added Tax Act.
The Directorate of T axes m ay issue more de tailed rules concerning authentication. (See
Regulatio n no . 35.)

Section 6.
The tax exem ption in the first subsection of Se ction 1 does not compri se deliveries to ships
and aircraft in passenger traffic between Norway and Denmark, Sweden or Finland of goods for
sale to passengers from kiosks or sim ilar outlets on board. This does not apply to alcoholic bever-
ages, tobacco products, chocolate and sweets, perf umes, cosmetics and toiletries, to the extent
that and subj ect to the conditions under which such goods can be released by the Custom s un-
taxed.

35

Section 7.
The tax exem ption in the first subsection of Se ction 1 does not apply to sales to ships laid
up in Norwegian waters of provisions and othe r goods which are consum ed during the laid-up
period.

Section 8.
A registered person engaged in business or trade shall not pay tax on the sale of services
exclusively intended for use abroad, on Svalbard and Jan Mayen, or for foreign ships and aircraft,
as m entioned in Section 17 first subsection literas a-c of the Value Added T ax Act. Nor shall tax
be paid on the sale of services that is capable of delivery from a rem ote location 1) when the recipi-
ent of the service is a business resident abroad, on Svalbard or Jan Mayen or a public activity
abroad, on Svalbard or Jan Mayen. In the case of the sale of services that can be supplied from a
distance to others resident abroad, on Svalbard or Jan Mayen, the stipulation in the first subsec-
tion applies. The condition for the tax exem ption a ccording to the first subsection is that the ser-
vice:
a. is performed abroad, on Svalbard or Jan Maye n, for foreign ships or aircraft as mentioned
in the first subsection, or
b. is performed in this country for a client resident abroad, on Svalbard or on Jan Mayen.
With regard to a service as mentioned under lit ra b of the second subsection and involving
work on goods, it is m oreover a condition for th e tax exem ption, where nothing to the contrary has
been decided, that the person engaged in business or trade has the goods cleared for export by the
Customs.
The Directorate of T axes can issue m ore deta iled rules concerning authentication of the
tax-free sale. (See Regulation no. 35. )
1 See regulation no. 121 of 15 June 2001 relating to value added tax on the purchase of services
from abroad.

Chapter 2. Sale of goods and services for the use of ships and aircraft in international transport.

Section 9.
Subject to conditions as m entioned in Sectio n 11, a registered person engaged in business
or trade shall not pay value added tax (zero-rate) on the sale of goods for the use of ships of over
15 metres maximum length and aircraft in internat ional transport when they carry cargo or con-
vey passengers for payment.
As ships in international transport are reckoned ships which sail regula
rly between for-
eign ports or between Norwegian ports and ports abroad or on Svalbard or Jan Mayen. The same
applies correspondingly to aircraft.
The tax exem ption in the first subsection al so applies to goods for ocean station vessels
and for ships engaged in pelagic whaling in the Antarctic.
The tax exem ption in the first subsection moreover applies to provisions and goods for
consumption on individual voyages supplied to ships of over 15 m etres m axim um length which
carry freight or convey passengers for paym ent in dom estic trade when they are cleared out to
ports abroad or on Svalbard or Jan Mayen. Unde r the same conditions, the same applies corre-
spondingly to goods for salvage vessels and tugb oats with m axim um lengths of over 15 m etres,
Naval vessels and training ships and aircraft as mentioned in the first subsection of Section 17
first subsection no. 1 litra c of the Value Added T ax Act.

Section 10.
In respect of ships which are abroad, the tax ex em ption in the first subsection of Section 9
also applies to goods for the personal use of crew m embers and all goods for the slop chest.
With regard to the supply of goods for the slop chests of ships lying in Norwegian ports,
the tax exem ption only applies to goods which can be released by the Custom s free of custom s
duties and taxes.

36

Section 11.
The condition for the tax exem ption in Section 9 is that the goods are delivered to the ship
or aircraft in question or, if the ship or aircraft is abroad, that the goods are cleared for export by
the Custom s.
The condition for the tax exem ption in the firs t subsection of Section 10 is that seller has
the goods cleared for export by the Custom s.
The condition for the tax exem ption in the se cond subsection of Section 10 is that the
seller has the goods cleared for export by the Custom s as goods on which custom s duties and
taxes are to be refunded.
The Directorate of T axes m ay issue m ore deta iled rules concerning authentication of the
tax-free sale. (See Regulation no. 35. )

Section 12.
The tax exem ption in the first subsection of Section 9 does not include deliveries to ships
and aircraft in passenger traffic between Norway and Denmark, Sweden or Finland of goods for
sale to passengers from kiosks or sim ilar outlets on board. This does not apply to alcoholic bever-
ages, tobacco products, chocolate and sweets, perf um es, cosm etics and toiletries in so far as and
subject to the conditions under which they can be cleared for export by the Custom s untaxed.

Section 13.
The tax exem ption in the first subsection of Section 9 does not apply to sales to ships laid
up in Norwegian waters of provisions and othe r goods which are consum ed during the laid-up
period.

Section 14.
The tax exem ption in the first subsection of Se ction 9 does not apply to deliveries of goods
to shipping com panies or airlines in this country.
Subject to m ore detailed conditions laid down by the Directorate of T axes, registered ship-
ping companies and airlines can, the provision in the first subsection of Section 22 of the Value
Added Tax Act notwithstanding, claim a deduction in respect of input tax on goods for use as
mentioned in the first subsection of Section 9. Sh ipping com panies or airlines which are not regis-
tered in the chief county tax inspector’s census of liable registrants can claim refunds of input tax
on conditions laid down by the Direct orate of T axes. (See Regulation no. 35. )

Section 15.
Registered persons engaged in business or trade shall not pay value added tax on sales of
services for use by ships and aircraft as mentione d in the first, second and third subsections of
Section 9 if the service relates to
a. work on the vessel or aircraft or its permanent working equipment,
b. towing of the vessel,
c. the leasing of permanent working equi pment delivered to the vessel or aircraft.
Nor shall value added tax be paid on a co mmission paid by a Norwegian shipping com-
pany for the voyage chartering of a ship in in ternational transport or for the affreightment of
cargo on a ship in international transport.

Chapter 3. Crediting with value added tax on sales to tourists etc.

Section 16.
On conditions as m entioned in Sections 17 – 19, the seller can be credited with value
added tax calculated on sales of goods to person s resident abroad when the goods are taken out as
luggage. The same applies to sales of goods to persons staying on Svalbard or Jan Mayen.

Section 17.
When goods are sold to persons resident in Denm ark, Finland or Sweden, the seller can be
credited with the value added tax when the account s document that the buyer imported the goods
into his or her home country in immediate connection with the sale, and that payment of value

37

added tax or a corresponding general purchase tax was demanded on the im
portation of the
goods.

Section 18.
When goods are sold to persons resident in other countries than Denmark, Finland or
Sweden, the seller can be credited with the value added tax when the accounts docum ent that the
goods were taken out of the country by the buyer within a m onth of its delivery. The sam e applies
to sales of goods to persons st aying on Svalbard or Jan Mayen.

Section 19.
The selling price of each com modity sold to a person resident in Denm ark, Finland or
Sweden must be at least NOK 1,000 excluding tax. The same applies to sales to persons staying
on Svalbard or Jan Mayen. A group of goods norm ally constituting an item of goods are also re-
garded as one com modity.
For sales to persons resident in other countries, it is sufficient for the individual invoice
amount to be at least NOK 250 excluding the tax.
The Directorate of Taxes m ay issue m ore deta iled rules concerning authentication as a
condition for being credited with valu e added tax. (See Regulation no. 35. )

Chapter 4. Delivery of goods to free warehouses.

Section 20.
A registered person engaged in business or trade shall not pay value added tax (zero-rate)
on sales of goods which he or she with the cons ent of the Custom s authorities delivers for storage
to the buyer’s free warehouse.
The Directorate of T axes m ay issue m ore deta iled rules concerning authentication of the
tax-free sale. (See Regulation no. 35. )

Comments:
Comment on the third subsection of Section 2, in a letter dated 2 December 1987 from the
Ministry of Finance:
As of 1 July 1986, export declarations are no t as a general rule required for goods worth
up to NOK 5 000. Special rules apply to fish, conc erning which information can be obtained from
the Custom s authorities.

With regard to Section 5 and Section 14 of the Regulation, the Ministry of F inance com –
mented as follows in a letter dated 27 Fe bruary 1970 to the Directorate of Taxes:

Re Section 5.
According to section 22 first subsection no. 3 of the Value Added Tax Act, the right to de-
duction does not extend to input tax on goods an d services acquired exclusively for use as m en-
tioned in the second subsection of Section 14 of the Act, with a corresponding obligation according
to the latter provision to pay tax as on withdrawal s if the right to deduction m entioned is not pre-
cluded.
In order that registered persons engaged in business and trade shall not be charged tax on
goods used as gifts to abroad and for distribution abroad for advertising purposes, Section 5 of the
Regulation lays down that a deduction can be clai med, the provisions in the first subsection of
Section 22 of the Value Added Tax Act notwithstand ing, and moreover that tax shall not be paid
as on withdrawals.

Re Section 14.
According to Section 14 of the Regulation, the ta x exemption does not apply to ships and aircraft
in overseas trade for deliveries of goods to ship ping com panies or airlines in this country. The
second subsection of the Section contains a prov ision which, notwithstanding the first subsection
of Section 22 of the Value Added T ax Act, conveys a right to deduction in respect of input tax on
goods for use as m entioned in the first su bsection of Section 9 of the Regulation.

38

No 27.

Regulations relating to sales of goods and se rvices for use offshore in connection with
exploration for and exploitation of submarine natural resources

(Issued by the M inistr y of Financ e 19 Febr uar y 1974 in pu rsuanc e of Sec tion 16, sec ond subsec tion litr a a, c f.
first subsec tion no. 1 litr a b and Sec tions 70 and 75 in the Ac t r elating to Value Added Tax of 19 June 1969
No. 66.)

Chapter 1. Sales to drilling and licensed com panies etc.

Section 1.
Persons engaged in trade or business and liable to registration, shall not, on conditions laid
down in the Value Added T ax Act and these Regula tions, charge and pay tax on goods to licensed
com panies, drilling com panies, platform owners and lessees of platform s, provided that the goods
are for use in sea-areas outside Norwegian territo rial waters in connection with exploration for
and exploitations of subm arine natural resources.
Regarded as equal to sales to licensed and drillin g com panies are sales to persons in trade or
business, who as for registration are non-liable, bu t render services offshore relating to plant and
installations as referred in Section 2 a in these Regulations.
The exem ption under the first and second subsection shall not apply to:
a) goods for use within the country,
b) goods for sale to the crew.

Section 2.
Persons engaged in trade or business and liable to registration, shall not, on conditions laid
down in the Value Added Tax Act and these Regula tions, charge and pay Value Added Tax on the
rendering of services to assign ors m entioned in Section 1 if:
a) the service is perform ed at the drilling well or expl oitation site or in the exploration area or on
or at storage installations, installations for generating electric power, pipelines, place for
shipment or other plant and installation connect ed with the exploitation of natural resources
in sea-areas outside Norw egian territorial waters,
b) the service is perform ed in Norway on equipm ent and plant related to such plant or installa-
tions as mentioned under litra a) above,
c) the service involves proj ecting, drafting, engin eering or technical assistance related to plant or
installations as m entioned under litra a) above,
d) the service relates to transportation between shore and drilling well, exploitation or installa-
tion site in sea-areas outsid e Norwegian territorial waters.

Section 3
Persons engaged in trade or business and liable to registration, shall not charge and pay Value
Added T ax on the sales of goods in connection with rendering such services as m entioned in Sec-
tion 2.
Chapter 2. Sales to owners or lessees of specialised ships.

Section 4.
Persons engaged in trade or business and liable to registration, shall not, on the conditions
laid down in the Value Added Tax Act and these Regulations, charge and pay Value Added Tax on
goods for use of a specialised ship.
“A specialised ship” is any ship specially built or rebuilt for use in the petroleum industry or
for carrying out assignments in such industry.
On conditions as mentioned in the first subsec tion, a person engaged in trade or business and
liable to registration shall not charge and pay Va lue Added T ax on services for the use of special-
ised ships providing the service involves:
a) work on the ship or the ship’s perm anent equipm ent,
b) towing of the ship,

39

c) hiring out perm anent working equipm ent delivered to the ship.
Nor shall Value Added Tax be chargeable or payable on fees paid by a Nor
wegian shipping
company for the negotiation of a vo yage chartering of, or a freight of cargo with a specialised ship.

Chapter 3. General rules.

Section 5.
Base companies liable to registration, shall not ch arge and pay tax on the sale of services in-
volving storage, unloading, transport etc. (handlin g) for account of assignors referred to in Chap-
ter 1 and Chapter 2, providing such sales are made on the base site.

Section 6.
Tax exemption under these regulations shall apply on condition that the goods are supplied in
compliance with a Purchase Order and furthermore on conditions of verification as provided by
the Directorate of Taxes in Rules issued 22 February 1974.

Section 7.
These Regulations shall enter into force on 1 March 1974.

No. 31.

Regulations relating to zero-rated tr ansport directly to or from abroad.

(Stipulated by the M inistr y of Financ e on 26 M ay 1970 an d under the pr ovisions of the VAT Ac t, Sec tion 16,
last subsection litra a, cf . first subsection no. 3. )

Section 1.
No VAT (output tax) shall be charged on tran sport services in Norway when the transport
occurs directly to or from abroad.
Direct transport, as referred to in the first subsection, occurs when an agreem ent exists cov-
ering the uninterrupted transport from one location in Norway to a location abroad, or vice versa.
Concerning connection transport (transport of transit or transfer passengers) to or from
abroad, the exem ption only applies if
a. an agreement about through transport has been made in advance,
b. a ticket has been issued from the first point of departure in this country to the final destina-
tion abroad, or vice versa,
c. subsequent transport is carried out by th e use of the identical m eans of transport,
d. subsequent transport is started within 24 hours and is directly linked to the initial transport,
and
e. any checked in luggage is checked in from the start.
The rules set out in the third subsection apply regardless of the transport taking place by the
use of a means of transport that is scheduled an d/or chartered, and regardless of the subsequent
transport involving a change of station, airport, seaport etc. provided that the other conditions
are met.
The exemption does not apply to any part of a round trip in this country that exceeds 24
hours.

Section 2.
The zero-rated VAT in Section 1 also applies to services rendered generally in connection
with transport services in Norway.

Section 3.
The services referred to in Sections 1 and 2, and that concern the transport of goods can only
be invoiced at zero-rate VAT in accordance wi th the transit document, and only to the con-
signee/shipper or the foreign carrier, shipping ag ent etc. Persons engaged in trade and business

40

who transport goods directly between locations in Norway and abroad can also invoice the Nor-
wegian carrier at zero-rate VAT.

Section 4.
The Directorate of T axes m ay stipulate m ore detailed regulations regarding direct transport
and the necessary documentary proof etc. for zero -rated supplies pursuant to these Regulations.
(See Regulation no. 34. )

No. 34.

Regulations relating to direct transport to and from abroad, and to proof of zero-rate
entitlements pursuant to the Ministry of Finance Regulations of 26 May 1970.

(Stipulated by the Dir ectorate of Tax es on 28 July 1970 and pur suant to the M inistr y of Financ e Reg ulations
Sec tion 4. )
(See Regulations No. 31.)

1.
An agreem ent regarding the transport of goods as referred to in Section 1, second subsection
of the regulations m ust be in writing, either in the form of a written com mission, consignm ent
note, bill of lading or bordereau for the entire rout e. As proof of the zero-rated supply can also be
used a m anifest, if the m anifest states the nam e of the sender, the place of dispatch, the receiver,
the recipient place and in addition the freight char ge and other charges that are collected for each
shipment.
An agreem ent regarding the transport of person s as referred to in Sect ion 1, second subsec-
tion of the regulations can be verified beside s through a written agreement, through a sales
document or a ticket. The documentation shall furt hermore contain an account of the journey, in
which the times of any connection transport, cf. the regulations section 1, third subsection, are
listed. The sam e rule applies to connection transport.
However, in the case of co-ordinated transpor t to or from abroad, m ore than one transport
docum ent may be used as proof of the zero-rated supply for the entire route, on condition that
cross-references are appended to the shipping ag ent’s documents. The sa me applies to connection
transport.

2.
The person responsible for the zero-rate invo icing in accordance with Section 1 of these
regulations shall keep a copy of the docum ent re ferred to under (1) as a voucher for the accounts.

3.
Sales documents for services as stated in Sectio ns 1 and 2 of these regulations, m ust contain
a reference to the docum ent stated under (1) above.
Both a copy of the sales document and the docu ment stated under (1) above shall be kept as
vouchers for the accounts.

4.
The tax exem ption (zero-rating) for the transport of goods in Sections 1 and 2 of these regula-
tions applies only to services rendered prior to the goods being m ade available to the consignee or
his representative at the destination stated in the docum ent stated under (1).

41

No. 35

Regulation relating to authentication ru les for sales of goods and services for use
abroad, etc.

(Issued by the Dir ectorate of Tax es 31 July 1970 in pur sua nce of the M inistr y of Financ e’s Reg ulation No. 24 of
23 Febr uar y 1970.)

The rules relate to the respec tive Sections of the Ministry of F inance’s Regulation.

1. The first subsection of Section 1 of the Regulation.
Goods for the use of foreign ships or aircraft as mentioned in the first subsection of Sec-
tion 1 of the Regulation can be supplied free of tax in Norway on the following conditions:

It must be stated in a sales voucher which shipping company/airline is the buyer and
when and to which ship/aircraft delivery has been made. The supplier must on his copy of the
sales voucher demand a receipt from the person responsible on board confirm ing receipt of the
good(s) for the ship’s use. Reference is also m ade to the Ministry of Finance’s Regulation of 14
October 1969 relating to the contents of sale docume nts etc. (No. 2). The receipt must be kept by
the supplier in the m anner laid down by the Directorate of T axes, see item 9 below.

The third subsection of Section 1 of the Regulation.
Advertising publications printed in foreign languages and advertising film s with foreign
speech which are exclusively intended for use abroad, can be delivered free of tax by the
printer/film producer to a client in Norway who is not an intermediary (advertising agency), pro-
vided the assignm ent has been carried out on the basis of a written order stating that the publica-
tions/ advertising film s are for use abroad.
The printer/ film producer m ust retain the orde r and a copy of the tax-free publication/film
as laid down by the Directorate of T axes, see item 9 below.
The provisions in the first and second subsec tion apply correspondingly to deliveries of
advertising publications/advertising film s as m entio ned from an advertising agency to a client in
Norway. T he delivery from the printer/ film produc er to a Norwegian advertising agency is liable
to tax unless the publication/film is an ad vertisem ent for that agency for use abroad.

2. Section 2 of the Regulation.
In the cases in which clearance for export by the Custom s is laid down as a condition, the
exporter is obliged to keep a copy of the custom s declaration as authentication of the tax-free sale
of goods for use abroad etc. The custom s declaration shall be kept as laid down by the Directorate
of T axes, see item 9 below.
In connection with consignments for which the current Customs Regulations do not re-
quire the presentation of a custom s declarat ion, the condition for tax-free delivery is:
a. For dispatch by road, air, railway or ship, th e seller shall keep a copy of the invoice stam ped
by the Custom s and a waybill stam ped and bearing the charterer’s receipt showing that the
consignment has been received for dispatch abroad.
b. For dispatch through the Postal Services, the seller shall use the Postal Services Adm inistra-
tion’s customs declaration form 147, or a mail receipt book, clearly showing the buyer’s (con-
signee’s) name and address, the value of the good s, and the post office’s stamp and receipt for
the consignment.
c. For dispatch through a forwarder, the seller can use a declaration (manifest) issued by the
forwarder and stamped by the Customs and clearly showing the individual buyer’s (con-
signee’s) nam e and address, a description of the goods, and the value of the goods, together
with a reference to the seller’ s sales voucher and bearing the charterer’s stamp and receipt
for the consignment for dispatch abroad.

A copy of the invoice, the waybill, and the Postal Service’s customs declaration form 147
shall be kept as laid down by the Tax Director ate, see item 9 below. A m ail receipt book is a

42

voucher and must be retained in this country fo r 10 years from the date of the last consignm ent
entered in the book. A declaration (manifest) issu ed by a forwarder is a voucher and must be re-
tained in this country for 10 years from the date when the declaration (manifest) was stamped by
the Customs Administration.
The Ministry of T rade m ay exem pt a person who is obliged to keep accounts and books ac-
cording to the Accounting Act from the obligation to retain the documents or fix a shorter period
of retention. T he Directorate of T axes may do th e sam e for a person who is not obliged to keep
accounts and books according to the Accounting Act.

The third subsection of Section 2 of the Regulation.
(Repealed with effect from 1 June 1983 by an amending Regulation of 19 May 1983.)

The fifth subsection of Section 2 of the Regulation.
(Repealed with effect from 1 June 1983 by an amending Regulation of 19 May 1983.)

2A. Section 3 of the Regulation.
A registered Norwegian supplier can deliver goods which have been resold to abroad to
the exporter free of tax on the following conditions:
The exporter shall issue an order form with a copy. The order form shall be clearly writ-
ten, numbered, dated, and signed (also the copy), and shall state:

a. The exporting firm’s name, address and regist ration number in the census of registrants
liable to VAT.
b. The name and address of the person engaged in business or trade who is to supply the good.
c. The nature of the goods.
d. The quantity of the delivery requested.
e. In the event, the price if it has been fixed.
f. The tim e and place of the delivery.
g. That the goods have been resold to abroad and to which country.

On his or her copy of the order form , which m ust be retained as a voucher, the exporter
shall enter a reference to the supplier’s voucher, to the invoice to the foreign buyer, and to the
export document.
In the invoice to the exporter, the supplier of the goods shall refer to the order form , which
is to be attached to the supplier’s copy of the in voice and retained as a voucher. The invoice (and
copies) shall be clearly marked:
“Value added tax not calculated.”

2 B. Section 4 first subsection no. 2 of the Regulation.
The seller m ust issue a dated invoice co ntaining the following information:

a) The seller’s name and address.
b) The buyer’s name, address and passport number.
c) The buyer’s flight number.
d) A clear description of the goods.
e) The quantity or volum e sold.
f) The am ount paid for the goods.

3. Section 5 of the Regulation.
The condition for claiming a deduction in resp ect of input tax according to Section 5 is
that the person engaged in business or trade ha s the goods cleared for export by the Custom s.
The provisions in item 2 above relating to th e retention of the custom s declaration and of
authentication of consignm ents for which no cu stoms declaration is required apply correspond-
ingly.

43

4. Section 8 of the Regulation.
The condition for tax exem ption according to litra a of the second subsection of Section 8 is
that the sales voucher states when and where the service was performed. With regard to the tax
exem ption in litra b of the second subsection of Section 8, docum entation is also required showing
that the service is entirely for use abroad, on Svalbard or Jan Mayen, cf. Section 43 of the Value
Added Tax Act.

5. Section 11 of the Regulation.
In cases where the condition is stipulated of clearance for export by the Custom s, the
seller is obliged to retain the custom s declaration. The customs declaration shall be kept as laid
down by the Directorate of T axes, see item 9 below.
Provided delivery is made in Norway, goods de livered to ships or aircraft as mentioned in
Section 9 can be delivered free of tax on the following conditions:
The sales voucher must state which shipping company/airline was the buyer and when
and to which ship/aircraft the delivery was made. On his or her copy of the sales voucher, the
supplier must demand a receipt from the person responsible on board showing receipt of the
good(s) for use on board. See also the Ministry of Finance’s Regulation of 14 October 1969 relating
to the contents of sale docum ents etc. (No. 2). The receipt m ust be retained by the supplier as laid
down by the Directorate of T axes, see item 9 below.
Goods delivered in Norway to a shipping co mpany’s forwarder for forwarding by him or
her to ships abroad m ay be delivered free of tax on the following conditions:
The order m ust be m ade from the shipping com pany to the supplier in writing. The order
must state the name and address of the forwarder who is to arrange the transport and which ship
the goods are to be delivered to. T he order m ust be retained by the supplier as laid down by the
Directorate of T axes, see item 9 below.
The forwarder must ship the good(s) out through the Custom s on behalf of the shipping
company and send a copy of the customs declaratio n and the vouchers which must be presented to
the Custom s to the shipping com pany. The custom s declaration and vouchers must be kept by the
shipping company as laid down by the Di rectorate of T axes, see item 9 below.

6. Section 14 of the Regulation.
The condition on which a shipping company or airline in pursuance of Section 14 can
claim a refund in respect of input tax on goods fo r use as m entioned in the first subsection of Sec-
tion 9 is that the shipping company or airline keeps separate stock accounts, with a separate ac-
count for deliveries/withdrawal s for each ship or aircraft.
A receipt for item s withdrawn or delivered sha ll be issued by the person responsible on
board.
The receipt shall be retained by the shipping company/airline as laid down by the Direc-
torate of T axes, see item 9 below.
On the conditions mentioned above, shipping companies and airlines which are not regis-
tered in the chief county tax inspector’s census of liable registrants may apply to have taxes paid
refunded by the chief county tax inspector. The application m ust include a list of the particular
deliveries/withdrawals, the name of the vessel/aircra ft, its signal letters if any, and the trade in
which it is engaged.

7. Section 16 and Section 17 of the Regulation.
It is a condition for being credited with valu e added tax calculated on sales to persons
resident in Denmark, Finland or Sweden that a numbered and dated sale document is issued
stating:

a. The name and address of the person engage d in business or trade who supplies the good.
b. The buyer’s name and home address.
c. The nature and quantity of the goods.
d. The am ount paid for the goods excluding tax and the am ount of tax.

44

The seller m ust present a duplicate/ copy of the im port docum ent from the buyer’s hom e
country which shows the date of the im port and that value added tax/ the general purchase tax
has been paid.

Section 16 and Section 18 of the Regulation.
It is a condition for being credited with valu e added tax calculated on sales to persons
resident in other countries than Denmark, Finland or Sweden during a temporary stay in this
country that the seller can present a completed fo rm RG-135. The same applies to sales to per-
sons staying on Svalbard or Jan Mayen. An export attestation from the Customs must be entered
on the form within a m onth after the delivery of the goods.
In connection with crediting through a privat e com pany, the seller m ust present an in-
voice or bill from that com pany, and a copy of the issued refund form .

8. Section 20 of the Regulation.
The condition for tax exemption according to Se ction 20 is that the seller’s invoice clearly
shows that the place of delivery is the buyer’s free warehouse.
In addition, a copy of the customs declaratio n shall be retained by the seller in the m an-
ner laid down by the Directorate of T axes, see item 9 below.

9. Declarations and other documents which acco rding to the present rules shall be retained
by the person engaged in business or trade shall be clearly written. They are vouchers, and must
be kept in this country in good order together with other documents for at least 10 years after the
expiry of the accounting year in question.
The Ministry of T rade m ay exem pt persons who are obliged to keep accounts and books
according to the Accounting Act from the obligatio n to keep the docum ents, or require a shorter
period of retention. The Directorate of T axes m ay do the sam e for persons who are not obliged to
keep accounts and books according to the Accounting Act.

No. 42.

Regulations relating to exemption from Va lue Added Tax (zero-rate) for the repair,
maintenance, new-building and con version of sh ip s etc.

(Stipulated by the M inistr y of Financ e on 22 Januar y 1971 and under the pr ovisions of the VAT Ac t, Sec tion
17 fir st subsec tion no. 2 and sec ond subsec tion and Sec tion 75. )

Section 1.
Registered persons engaged in trade or busi ness shall not calculate or pay Value Added Tax
(output tax) on last stage payments invoiced by the business for services provided that are di-
rectly connected to the repair, mainte nance, new-building and conversion of:
1. Ships measuring and exceeding 15 metres in length, and intended fo r commercial passengers,
the transport of cargo, for towing, salvage, rescue, ice-breaking, co mmercial fishing and hunt-
ing activities, and vessels specially designed fo r use in offshore petroleum -related activities.
Tax exem ption (zero-rate) also applies if such vessels are hired out to the Navy.
2. Training ships, Navy vessels and ships used for m eteorological and research purposes.
3. Commercial and military aircraft. Tax exemptio n (zero-rate) also applies if commercial air-
craft are hired out to the Air Force.
4. Oil drilling platform s and other m obile pl atform s used in the petroleum activities.
5. Fixed operational equipment on vessels, ai rcraft and platforms as described under 1-4.

Section 2.
Nor shall persons engaged in trade or business, and who provide the services referred to in Section
1, calculate or pay Value Added Tax (output tax) on goods that they deliver in connection with the
service.

45

Section 3.
The Directorate of T axes can provide m ore de tailed regulations regarding entitlement to tax
exem ption (zero-rate). (See no. 43. )

Section 4.
These regulations take effect from 1 January 1971.

No. 43.

Regulations relating to the rules of en titlement for tax exemption (zero rate)
for the supply of services and goods in co nnection with the repair, maintenance,
new-building and conversion of ships etc. a ccording to the VAT Act, Section 17, first
subsection, no. 2.

(Stipulated by the Directorate of Taxes on 17 February 1971 and pursuant to regulations no. 42
Section 3.)

1. The condition for tax exem ption (zero rate) in Section 1 of the Ministry of Finance regulations
of 22 January 1971 is that the sales voucher stat es both when, and for which vessel, aircraft
or platform as described in Section 1 of the regulations, the services are provided. If the ser-
vice is not provided on/for the vessel, aircraft or platform, there is an additional condition that
the responsible person on board, the shipping com pany or the airline com pany m ust provide a
declaration that the item for which the service is provided is part of the ship’s, aircraft’s or
platform ’s fixed operational equipm ent. T he decl aration must be retained by the supplier as
stipulated by the Directorate of T axes, see (3) below.

2. The condition for tax exem ption (zero rate) in Se ction 2 of the regulations is that the item is
invoiced as part of the same sales document as for the service provided or, in cases where a
separate sales document is used, that reference is made on this to the sales document issued
for the provision of the service. The supplier m ust request a receipt from the responsible per-
son on-board or from the shipping com pany/ air line com pany indicating that the item has been
received. The receipt must be retained by the supplier as stipulated by the Directorate of
Taxes, see (3) below.

3. Declarations and other documents that are to be kept by the persons engaged in trade or
business in accordance with these rules, shall be clearly legible. They are vouchers to the ac-
counts and as such shall be kept in Norway together with other documents in an orderly
manner for at least ten years after the en d of the accounting year in question.
The Departm ent of T rade can grant exem ptio n from the obligation to keep these docu-
ments or stipulate a shorter period of safekeeping.

No. 49

Regulations on delimitation of the expression “passenger vehicle”

(Stipulated by the M inistr y of Financ e on 25 Oc tober 1971 under the pr ovisions of the VAT Ac t, Sec tion 14, thir d
subsec tion, and Sec tion 75.)

Section 1.
The following are to be regarded as passenger vehicles in accordance with the VAT Act,
Section 14, third subsection:
1. A passenger vehicle without m otorised propulsion.
2. A motor vehicle that is registered as a mo ped, light motorcycle, heavy motorcycle or belt
driven motorcycle (snow scooter). If such a m otor vehicle is primarily equipped for the trans-
port of goods, it is not to be considered a passenger vehicle.

46

3. A motor vehicle registered as a passenger ca r, including vehicles prim arily equipped for the
transport of goods, with a total allowable weig ht of less than 3,500 kg, and which behind the
driver’s seat is equipped with built-in seatin g arrangem ents or fitti ngs, mountings, recesses
or similar for such an arrangement.
The following are also to be considered passenger cars
a) Motor vehicle which has been approved for use as a taxi, a hire car with chauffeur or a ho-
tel vehicle.
b) Motor vehicle that has been approved as an ambulance.
4. Belt-driven cars/vehicles that are registered for more than 2 persons including the driver.
5. Motor vehicle registered as a bus under 6 meters with up to 17 seats.
6. Registered caravan.
7. C ampe r vans.

Section 2.
A motor vehicle registered as a combi vehicle is to be regarded as a passenger vehicle for
that part equipped for passenger transport.
Com bi vehicles with only one row of seats behi nd the driver’s seat are not to be regarded
as passenger vehicles according to these regulations.

Section 3.
Persons engaged in trade or business and who ar e registered according to the VAT Act, m ay,
at any one tim e, own one belt-driven m otorcycle (sno w scooter) as stated in Section 1 no. 2 without it
being considered a passenger vehicle. Such vehicl es may not be purchased new more than every two
years, unless the vehicle has been condemned.

No. 50

Regulations on tax exemptions (zero rate) for advertising services on foreign account

(Issued by the M inistr y of Financ e 24 Nov ember 1971 in pur suanc e of Sec tion 16, fir st subsec tion No 11 of
the Ac t r elating to Value Added Tax of 19 June 1969 No. 66.)

Section 1.
Subject to the conditions set out in these Regu lations, persons engaged in trade or business
and liable to registration under the Value Added Tax Act shall not be liable to charge and pay
Value Added T ax on advertising services carried ou t in Norway for account of foreign assignors.
Persons engaged in trade or business, who purs uant to Section 28 a in the Value Added Tax
Act are registered on a voluntary basis, shall in re spect of the provision in the above subsection be
regarded as if they were pe rsons liable to registration.

Section 2.
Advertising services shall be taken to include i.a. services involving:
a) prelim inary work directly relating to advertising (research, reporting and the like),
b) drafting proposals for arranging advertising ca mpaigns, the layout of advertisement, advertis-
ing material and the like,
c) insertion of advertisements,
d) renting space for advertising purposes,
e) renting tim e for film , cinem a and theatre advertisem ents,
f) transm ission of advertisem ents on radio or television,
g) airborne advertising transparencies and the like,
h) mass delivery or distribution of advertising m atter and the like,
i) renting of stands on fairs and exhibitions.

47

Section 3.
The tax exem ptions shall not apply to the deliver y of advertising material such as posters,
printed matter, clichés, matrixes etc. or preparatory work on advertising m aterial or other goods,
land, building or plant serving the advertising purpose.

Section 4.
Tax exem ptions according to these Regula tions are granted on conditions that:
a) the foreign assignor is not registered in Norway,
b) the business activity of the foreign assignor is of a kind wholly covered by Chapter IV in the
Value Added T ax Act, and m oreover that the advertisem ent relates to goods and services sup-
plied in his business.
The provision in the first subsection under b, sh all apply correspondingly to activities which,
had they been carried out in Norway, would have qu alified for registration on a voluntary basis in
accordance with Section 28 a of the Value Added Tax Act.

Section 5.
The Directorate of T axes m ay stipulate detailed rule s as to how tax free sales are to be verified
under these Regulations.

Section 6.
These Regulations shall enter into force on 1 January 1974.

No. 53

Regulations on tax exemption (zero rate) for guarantee repairs perform
ed on behalf of a
foreign principal

(Stipulated by the M inistr y of Financ e on 16 June 1972 und er the pr ovisions of the VAT Ac t, Sec tion 16, fir st
subsec tion no.11, and Sec tion 70)

Section 1.
Pursuant to the conditions stipulated in th ese regulations, persons engaged in trade or
business who are liable for registration shall not calculate or pay value added tax (out
put tax) on
guarantee repairs, performed on behalf of a foreig n principal, on goods or constructions that the
principal has delivered to a buyer in Norway.

Section 2.
The conditions for tax exem ption (zero rate) in accordance with these regulations are that
the foreign principal is not regist ered for business activities in No rway, and that the costs of the
guarantee repairs are to be borne entirely by the foreign principal.

Section 3.
The Directorate of T axes is em powered to stipulate m ore detailed rules on the enforce-
ment of these regulations.

Section 4.
These regulations come into effect from 1 July 1972.

48

No. 55

Regulations relating to tax exemption (zero rate) for certain services regarding public
roads

(Stipulated by the M inistr y of Financ e on 20 Nov emb er 1972 under the pr ovisions of the VAT Ac t, Sec tion
16, sec ond subsec tion, litr a a, c f. fir st subsec tion no. 12.)

Section 1.
No VAT (output tax) shall be paid on the su pply of services by the end supplier in connec-
tion with the planning, design, construction, repair and maintenance of public roads, as well as
the workshop production of bridges or parts of bridges for such roads.

Section 2.
According to these regulations, a public road is a road or street that is open for general
traffic, and which is m aintained by the state, county or municipality pursuant to the provisions of
the Public Roads Act of 21 June 1963 No. 23 chapter IV.

Section 3.
Public roads also include other roads open for general traffic that are constructed by the
private sector, for example by a road, bridge or tunnel construction company, by urban or rural
neighbourhood organisations or other associations , provided that the state, county or m unicipal-
ity has made a binding decision that the road is to be adopted as a public road.

Section 4.
In addition, a road or part of road includes the main body of the road with its surfacing, as
well as other devices constructed or mounted for the sake of its use, preservation or safeguarding
as a perm anent or tem porary thoroughfare fo r vehicular as well as pedestrian traffic.
A road or part of road also includes bridges, tunnels, fill etc. for conveying the road, ferry
quaysides and other quays that are constructed sole ly for the purpose of the further conveyance of
road users, and which are included as part of th e road network, passing places, turning places,
bus stops, bus bays, picnic areas, parking areas and storage yards etc. that are built for the pur-
pose of traffic flow on the road. The sam e ap plies to kerbstones, railings, pavem ents, shoulders
and traffic islands, road signs and other non-au tom atic, non-illum inated fixed arrangem ents for
traffic regulation, as well as pedestrian underpasses/bridges.
A road or part of road also includes the dr ainage system of the road with storm drains,
trenches etc., superstructures, snow shields or other devices for safeguarding against landslide,
rockfall or snow drift, planted areas as well as reinforcem ent walls, counter fills or sim ilar for
protection against slides.

Section 5.
The tax exem ption (zero rate) in Section 1 does not em brace the supply of services pro-
vided in connection with the pla nning, design, construction, repa ir and maintenance of devices
that are not built for the sake of the use of the road or street, its preservation or securing as a
thoroughfare, even if the devices are built with in the area encom passed by the road or street.
In all cases tax liability applie s to services connected with:
a. Fences, gates, barriers, cattle/ livestock grids etc.
b. Shelters or other constructions at bus stops etc.
c. Quays, other than those m entioned in Section 4, wharves, embankments etc.
d. Illum inated road signs, traffic lights, road or street lighting fitted to lam pposts, as well as
other mechanical or electrical equipm ent, such as motors and pumps for bascule bridges, and
cables or other lines for the supply of power to the devi ces mentioned.
e. Rails, cables and other equipm en t for rail wagons or trolleybuses.
f. Sewer conduits, water and gas pipelines, power lines and telephone/telegraph lines.

49

Section 6.
The Directorate of T axes is em powered to provide further rules regarding the supplemen-
tation and im plem entation of these regulations, and may establish interim provisions for contrac-
tors and others that have ongoing work on roads as of 31 December 1972 and in workshops as of
31 December 1980, as well as provisions on simp lified calculation bases for tender works encom-
passing the supply of materi als. (See No. 56 and No. 84).

Section 7.
These regulations come into force as of 1 January 1973.

No. 60

Rules relating to the verification of tax-fr ee sales of goods for use offshore in connec-
tion with exploration and exploitation of submarine natural resources

(Issued by the Dir ectorate of Tax es 22 Febr uar y 1974 in pur suanc e of Sec tion 6 of the Reg ulations laid down
by the M inistr y of Financ e 19 Febr uar y 1974.)

Purchase Order as mentioned in Section 2 in the Regulations laid down by the Ministry of
Finance 19 February 1974 shall contain:
The Purchase Order shall be distinguishe d with number and date and shall state:
a) name and address of the purchaser,
b) name and address of the supplier,
c) type of goods,
d) quantity requested,
e) tim e and place for the delivery of the goods,
f) the place where the goods are to be used.
The Purchase Order shall be written legibly in at least 2 copies whereof one copy shall be kept
by the purchaser.
The supplier m ust in his invoice provide a refere nce to the Purchase Order which must be kept
with a copy of the invoice. The invoice (with copies) shall clearly be
m arked:
“Value Added Tax not included.”

No. 71

Regulations concerning the registration of persons engaged in trade or business who
are aliens, by a representative in Norway

(Issued by the M inistr y of Financ e 31 M arch 1977 in pu rsuanc e of Sec tion 10 subsec tion 7 and Sec tion 61 a
of the Ac t r elating to Value Added Tax of 19 June 1969 No. 66.)

Section 1.
Any person engaged in trade or business, who is an alien, and who has no place of business or
residence in Norway, shall through a representati ve be included in the census of liable regis-
trants, providing he makes such sales in this co untry as m entioned in Chapter IV in the Value
Added Tax Act.
The representative is bound to have his reside nce or his place of established business in Nor-
way.

Section 2.
A notice as mentioned under Section 27 first subs ection of the Value Added T ax Act, shall con-
tain such inform ation, both regarding the alien pe rson and his representative, as required in the
form issued by the Directorate of T axes. The notice shall be signed by both of them .

50

Section 3.
The alien person engaged in trade or business as well as his representative are both responsi-
ble for the calculation and the payment of the Value Added Tax.

Section 4.
Any sales document (invoice etc.) relating to sales of goods and services m ade in this country
by the alien person shall be se nt through his representative.
The representative shall enter the following in the sales docum ent:
a) his own name and address and the organisati on num ber of the alien person followed by the
letters MVA according to Regulations issued by the Ministry of Finance 14 October 1969 con-
cerning contents of sales documents etc. Sectio n 2 first subsection litra b and second subsec-
tion.
b) Value Added Tax (output tax) calcul ated on the basis of the paym ent.
A sales document shall be issued in at least 3 copies and one of them shall be preserved by the
representative.

Section 5.
The representative shall for such supplies as ar e relating to the alien person (purchases and
sales), keep separate and complete tax accounts. The accounts shall be so arranged as to make the
tax authorities able to check whether Value Added Tax and Investment Tax
have been charged
correctly. In other respects Chapter II in Rules of 20 August 1969, issued by the Directorate of
Taxes, regarding the Accountancy and Book-keeping of P ersons covered by the Value Added T ax
Act and the Tax on Investments Act etc., shall apply.
Tax accounts, sales documents, vo uchers etc. and the accounts kept for purposes of the alien
person’s activities in Norway, shall by the repres entative be orderly preserved in this country for
at least 10 years after the expiry of the relevant financial year.
The Banking, Insurance and Securities Com mission m ay grant exem ption from liability to
preservation or prescribe a shorter period of pr eservation for persons under obligation to keep
accounts pursuant to the provisions in the Accountancy Act.

Section 6.
Tax demands against an alien who, in contravent ion of Section 1 above, has failed to register
through a representative, may be enforced agai nst buyers or assignors hereinafter listed:
a) the State, m unicipality or institutions which are operated by the State or m unicipality to the
extent these or assignors have not the right to deduct the Value Added Tax charged on the
supplies,
b) persons engaged in trade or business, not liabl e to registration in accordance with the Value
Added Tax Act,
c) persons engaged in trade or business, liable to registration in accordance with the Value
Added Tax Act, when the right to deduction of the Value Added Tax (input tax) charged on
the supplies in question is not allowed, cf. the Value Added Tax Act Section 22.
The provisions set out in the first subsection shall not apply to interest and additional tax.

Section 7.
The Directorate of T axes m ay stipulate detailed ru les for im plem entation of these Regulations.

Section 8.
These Regulations shall enter into force as from 1 May 1977. From the same date cancel-
lation shall be effected for Regulations of 14 April 1970 issued by the Ministry of Finance and
relating to sales of taxable serv ices to the State, m unicipality and not registered persons in trade
or business, where the services are rendered by an alien, not registered with the Norwegian tax
authorities, and Regulations of 16 June 1972 relating to the registration through a representative
in Norway of an alien person engaged in trade or business.

51

No. 106

Regulations relating to refunds of value a dded tax to persons engaged in trade or busi-
ness who are aliens.

(Issued by the M inistr y of Financ e 25 June 1996 in pur suanc e of Sec tion 26 a, six th subsec tion, of the Ac t
relating to Value Added Tax of 19 June 1969)

Section 1.
Persons engaged in trade or business who are alie ns and who are not liable to registration in
Norway are on application entitled to refunds of input tax, provided:
1. the input tax relates to the purchase of goods or services in Norway or im ports of goods into
Norway for use in the enterprise, and
2. the sale abroad would have entailed liability to registration or the right to voluntary registra-
tion according to Chapter VII of the Value Added Tax Act if the sale had take
n place in Nor-
way, and
3. the input tax would have been deductible if the enterprise had been registered in Norway.
Value added tax on goods acquired or im ported and sold in this country is not refunded. The
same applies to value added tax on goods impo rted for delivery to purchasers in Norway.

Section 2.
An application for a refund m ust relate to a pe riod of not less than three months and at most
one calendar year. The period can be less than thr ee m onths if it is the rem ainder of a calendar
year.
The application can only comprise value added tax relating to goods and/or services supplied in
the period m entioned in the first subsection.
The refund applied for must not be less than N OK 2 000. If the period to which the amount of
the refund relates is a whole calendar year or the remainder of a calendar year, refunds can nev-
ertheless be allowed down to a lower limit of NOK 200.

Section 3.
An application for a refund according to the pr esent Regulations m ust be m ade on a special
application form (RF-1032), and must be submitted no later than six months after the end of the
calendar year to which the application relates.
Enclosed with the application m ust be original invoices or corresponding documents which
meet the requirem ents for authenticating deductib ility according to the provisions in Chapter VI
of the Value Added T ax Act. Also enclosed with the application must be a clear description of the
nature of the activity and a certificate from a pub lic authority in the country in which the activity
is carried on, confirm ing that the applicant was enga ged in such activity during the period of the
application. Submission of a certificate can be om itted if such a certificate was submitted with a
previous application in the current year.
If tax is refunded on goods which were not cons umed by the foreign enterprise during the ap-
plication period and which could be object of resale in Norway, docum ent ation must also be en-
closed with the application showing that the goods have been exported from the country.
If the circumstances so indicate, the tax author ities can require further documentation to en-
able them to allow a refund.

Section 4.
With regard to the payment of interest according to the fourth subsection of Section 26 a of the
Act, the am ount shall be calculated from the date on which the tax was paid to the time-limit set
for the paym ent of the refund. Interest can also be calculated from the due date and until pay-
me nt i s made .

Section 5.
The provisions in the Act of 19 June 1969 apply as appropriate to applications for refunds to
persons engaged in trade or business who are aliens in so far as nothing to the contrary appears
from the present Regulations.

52

Section 6.
The present Regulations enter into force on 1 July 1996.

No. 117

Regulations relating to the voluntary registra tion of the lessor of buildings or plants
for use in businesses that are registered under the VAT Act

(Stipulated by the M inistr y of Financ e on 6 June 2001 under the pr ovisions of the VAT Ac t,
Sec tion 28a.)

Section 1.
Whoever rents out buildings or plants that are used by a business registered under the
VAT Act, m ay on application to the County Tax Offi ce, be registered in the VAT census according
to the provisions of chapter VII of the VAT Act an d on the conditions stated in these regulations.
The sam e applies to whoever rents out buildings or plants to
a. municipalities and county munici palities with municipal and county
municipal enterprise where the highes t authority is the local council, the
county council or other governing bodies pursuant to the Local Government
Act or special laws that relate to local governm ent.
b. inter-municipal or inter-county munici pal fusions that are organised pursuant
to the Local Government Act or special laws that relate to local governm ent
The registration covers the areas where the user would have had the right to claim deduc-
tion for input tax or would have had the right to be compensated for value added tax pursuant to
the Act of 12 December 2003 No. 108 on compensation of value added tax to municipalities and
county municipalities etc. if the user had owned the building or plant.
There must be an unbroken chain of voluntar ily registered persons between the lessor and
the person using the areas in a registered business.

Section 2.
The registered lessor of the building or plan ts shall calculate output VAT on the supply
that is covered by the registration.
VAT shall also be calculated on the taxable supplies of goods and services from the lessor’s
business, even if this supply does not, in the cour se of a twelve-m onth period, exceed the lim its for
registration pursuant to the VAT Act, Section 28.

Section 3.
The registered lessor of the building or plant has the right to claim deduction for the input
VAT on acquisitions for use in the business covere d by the voluntary registration, in accordance
with the provisions of the VAT Act, Chapter VI.

Section 4.
The provisions of the VAT Act apply to those th at are registered in accordance with these
regulations.

Section 5.
The registered lessor of the building or plant is obliged to com ply with the provisions and
conditions for registration that may exist at any time.

Section 6.
The registered lessor of the building or plant shall docum ent how the building or plant is
used through dimensional drawings or similar of the building or plant and through lease con-
tracts. The area to be let for deductible purposes must be clearly indicated.
At the end of each year an account must be pr ovided of the use of the prem ises during the
year. If sub-letting has taken place, an account must be provided by the ultimate tenant of his use

53

of the prem ises. T he im mediate tenant m ust also confirm that he has registered for the letting
voluntarily.
Each building or plant must be registered in such a way that a breakdown of the con-
struction costs for each individual user can be provided. T he sam e applies to subsequent exten-
sions, additional expenditure etc. on areas of the building or plant.

Section 7.
The Directorate of T axes has the authority to lay down further rules regarding documen-
tation and regarding the implementation of this regulation.

Section 8.
This regulation will come into effect on 1 July 2001.
Repealed from the same date are Regulati on (No. 80) of 3 May 1983 No. 918 regarding the
voluntary registration of the lessor of buildings or plants for use in businesses registered under
the VAT Act, and Regulation (No. 87) of 6 May 1983 No. 1017 regarding the implementation of
the regulations relating to voluntary registration of the lessor of buildings or plants for use in
businesses registered under the VAT Act. However, this does not apply to buildings or plants
under construction as at 1 July 2001 or completed before this date.

No. 120.

Regulations relating to reduced VAT rate on foodstuffs.

(Stipulated by the M inistr y of Financ e on 15 June 2001 and pur suant to the r uling of the Stor ting (Par lia-
ment) relating to VAT, Section 4.)

Section 1. Sco pe
These regulations apply to foodstuffs which, pursuant to the ruling of the Storting (P ar-
liament) relating to VAT and Investment Tax etc., I Section 2, shall be calculated at a lower rate
of VAT.
Reduced VAT rate shall be calculated at all stages of supply.

Section 2. Definition of foodstuffs
A foodstuff is regarded as any item of food or drink, or any other com modity, intended for
human consumption.
A commodity is defined as being inte nded for human consumption when it
1. possesses characteristics that deem it suitabl e for human consumption, in that it has been
approved, or has passed a sample analysis wh ere such procedures ar e established for the
commodity, and
2. is in fact supplied for consum ption
If there is any doubt as to whether a commodity ma y be regarded as a foodstuff, reference in this
respect can be made to the Act of 19 May 1933 No.3 related to Inspection of Foodstuffs etc.

Section 3. Exemptions to the scope of reduced VAT rate
The following com modities are not regarded as foodstuffs:
a) medicines; narcotics, drugs, or preparations defined as medicines pursuant to the Medicines
Act of 4 December 1992 No. 132. Medicines which, pursuant to the Medicines Act must have a
commercial license, are not regard ed as medicines according to these regulations prior to is-
sue of the license, or until the issue of a specific exem ption from the obligation to have such a
license.
b) water from water utilities; water from water utilities as defined in the regulations of 1 Janu-
ary 1995 no. 68 related to water su pply and drinking water etc.
c) tobacco products; commodities as defined in Section 3 third subsection of the P rotection
against Tobacco-related Illne sses Act of 9 March 1973 No. 14.
d) alcoholic drinks; drinks which contain mo re than 0.7 per cent alcohol by volume.

54

Section 4. Raw materials and input commodities
Reduced rate of VAT shall be paid on the suppl y etc. of raw materials and input commodities
that are regarded as foodstuffs pursuant to Sectio n 2 cf. Section 3, including raw materials and input
commodities that are supplied for the production of commodities as stated in Section 3.

Section 5. Composite commodities
A composite commodity is defined as a food stuff which, when combined with another
com ponent com modity with its own function or value, em erges as a single entity.
A reduced rate of VAT shall be paid in resp ect of the supply of a com posite com modity if
the com ponent com modity com prises only an insignificant part of the final product.

Section 6. Other costs
Other costs associated with the supply of a food stuff are also liable to the same VAT rate as
the foodstuff itself, provided that they constitute part of the calculation basis pursuant to Section 18
of the VAT Act.
If the packaging of the foodstuff has a value or function beyond that of sim ply packaging
the com modity, this will be regarded as supply of com posite goods according to Section 5.

Section 7. Services connected with the serving of foodstuffs
Foodstuffs that form part of the supply of se rvices connected with the serving of foodstuffs
are not regarded as supply of foodstuffs.
Services connected with the serving of foodstu ffs m eans the serving of foodstuffs from the
serving premises pursuant to the Act relating to Serving Businesses of 13 June 1997 No. 55, i.e. the
place where food and/or drink is/are served and wh ich is designed for consum ption on the prem ises.
Services connected with the serving of foodstuffs al so include serving as stated in Section 2 second
subsection, b, c, d, e, f and g of the Serving of Foodstuffs Act, unless the serving is part of another
service that is covered by the exem ption in Se ction 5 b second subsection of the VAT Act.
Adj oining room s/areas to serving prem ises onbo ard ships, in hotels, at places of work, in
theatres and cinem as etc. , are regarded as part of the serving prem ises. The Directorate of T axes
is em powered to stipulate regulati ons with further provisions regarding what are to be considered
as adj oining room s/areas pursuant to these regulations.
Serving prem ises also include the place wher e a catering business, in addition to deliver-
ing foodstuffs, provides services such as the hiri ng out of waiters/ waitresses, the laying and clear-
ing of tables etc.
The supply of foodstuffs from serving prem ises is not regarded as constituting a part of
the supply of services connected with the serving of foodstuffs if:

a) the foodstuff is not to be consum ed on the prem ises, or
b) the foodstuff is regarded as a traditi onal commodity available from a kiosk.
The Directorate of T axes is em powered to stip ulate further provisions concerning what is
considered to be serving prem ises. T he Directorate is also empowered to stipulate regulations with
further requirements for businesses that both su pply foodstuffs and services connected with the
serving of foodstuffs.

Section 8. Imports
These regulations apply equally to the import of foodstuffs as appropriate, and until other
regulations are issued to the contrary.

Section 9. Implementation
These regulations come into effect as of 1 July 2001.

55

No. 121.

Regulations relating to VAT on the purchase of services from abroad.

(Stipulated by the M inistr y of Financ e on 15 June 2001 and pur suant to the VAT Ac t Sec tions 65 a and 66.)

Section 1. VAT liability in connection with th e purchase of services from abroad
Pursuant to these regulations, VAT shall be paid on services which are purchased from
abroad, and which are liable when supplied in the domestic market.
The service is liable when it is supplied to a business that is resident in Norway, or to the
state, a municipality, or to an institution that is owned or m anaged by the state or a Norwegian
municipality. Unless it is docum ented that VAT on the service has been calculated abroad, it is
also liable for VAT when it is supplied to a recipi ent abroad if the service is intended for use in
Norway by any of those stated in the previous sentence.
The provision in the first subsection applies on ly to services that can be supplied from a
remote location, that is to say in cases where th e perform ance or supply of the service cannot, by
its ve ry nature , o r only with difficulty, be associated with a given physical location.

Section 2. Who shall calculate VAT (paym ent liability)
VAT shall be calculated and paid by th e recipient as defined in Section 1.
A recipient who is not enrolled in the VAT register shall not calculate or pay VAT when
the amount for a term is less than NOK 500.

Section 3. Basis for calculating VAT
VAT shall be calculated based on the remune ration for the service, cf. the VAT Act of 19
June 1969, no. 66 chap. V.
Remuneration stated in foreign currency sha ll be converted to Norwegian kroner based on
the exchange rate at the time of supply as stipul ated in Section 10 of the regulations of 3 Decem –
ber 1980 no. 4917 relating to the determination of the value of goods for customs purposes.

Section 4. Reporting and payment of VAT etc.
Liable recipients that are not enrolled in th e VAT register shall report VAT pursuant to
these regulations on a separate VAT return as stip ulated by the tax authorities. T he return pe-
riod is 3 months, and follows the quarter. The returns shall not be submitted for those periods
where no liability accrues. In all other respects, th e provisions in the VAT Act apply as appropri-
ate.
Liable recipients who are enrolled in the VAT register shall report VAT pursuant to these
regulations as output taxes on a return that is dealt with in Section 29 of the VAT Act.

Section 5.
These regulations come into force as of 1 July 2001.

No. 122.

Regulations relating to the s ubmis sion of annual year-end returns by bus ines ses that
are required to register an d that have low turnover.

(Stipulated by the M inistr y of Financ e on 29 June 2001 and pur suant to the VAT Ac t of 19 June 1969 no. 66
Sec tion 31 a.)

Section 1.
Businesses that are required to register an d that have a turnover below a threshold of
NOK 1 000 000 exclusive of VAT, can apply to the Co unty Tax Inspector for permission to submit
annual year-end returns. Year-end re turns shall cover the calendar year.

56

Section 2.
The tax authorities can reject an application to submit annual year-end returns if the busi-
ness has failed to carry out its obligations to pay tax or submit returns, or if it has seriously in-
fringed other provisions of the VAT Act.

Section 3.
The return m ust reach the tax authorities by the deadline stipulated in Section 33 of the
VAT Act. VAT is due for paym ent on the sam e date, cf. Section 34 of the VAT Act.

Section 4.
Registered businesses that submit annual year -end returns and that anticipate that their
turnover for the calendar year will exceed NOK1 000 000, shall inform the tax authorities imme-
diately.

Section 5.
Registered businesses can request that the reporting period be amended.
In the event of an am endm ent to bi-m onthly reporting periods the request must reach the tax
authorities by 1 December at the latest in order that it m ay take effect from 1 January the follow-
ing year. The amended reporting period shall apply for at least the two succeeding calendar years.
In the event of an amendment to annual year-e nd returns, the deadline is 1 February of the
same year.

Section 6.
In the event that the business has failed to carry out its obligations to pay tax or submit re-
turns, or has seriously infringed other provisions of the VAT Act, or if turnover during the calen-
dar year has exceeded the threshold, the tax auth orities can stipulate that returns be submitted
at bi-monthly intervals. The am endment shall apply for at least two succeeding calendar years,
and may take effect for the calendar year in whi ch the infringe me nt was co mmi tte d. The same
conditions apply in cases where the threshold is significantly exceeded.

Section 7.
These regulations come into effect as of 1 July 2001.
For businesses that become liabl e to pay VAT as a result of the VAT reform, annual year-end
returns can be submitted for 2001. Other businesses can submit a nnual year-end returns for the
first time for the year 2002.
If at least 50 per cent of a bu siness’s total turnover is associated with activities that are VAT-
liable from 1 July 2001, the business can submit a nnual year-end returns pursuant to the regula-
tions stipulated in Section 1.

57