Norway to loosen VAT representation requirements

Sun 12th Jul 2015

Foreign companies may faces less onerous requirements for VAT registering as non-residents traders in Norway.

Following a ruling made by EFTA (European Free Trade Association) in 2012, Norway changed the fiscal representation rules to drop the tax agent requirement for countries with which Norway had signed up for Mutual Assistance Directive. This allows national tax authorities to assist each other in recovering unpaid tax. This includes most of the EU.

The Ministry of Finance is publically consulting of easing the obligation to appoint a local tax agent / fiscal representative by foreign entities. The new consultation extends this to any country that has a tax information exchange policy.

Norwegian VAT is currently 25%; the EU average VAT rate is just below 22%.