September 28, 2025
If a service is not tied to a specific location in Norway, the obligation to account for VAT generally falls on the recipient (reverse charge mechanism). This applies to, for example:
If the service requires physical presence in Norway, the supplier must register for VAT and issue Norwegian invoices including VAT.
A typical case: a foreign supplier sells equipment to a client in Norway and also offers installation services.
Even if the equipment itself is sold directly to the Norwegian client, the installation service is subject to Norwegian VAT.
A foreign company providing location-based services in Norway must register for VAT once its turnover exceeds NOK 50,000 within 12 months.
To register, the company must first establish a NUF (Norwegian-registered foreign company) in the Brønnøysund Register Centre and obtain a Norwegian organization number. Only then can it issue invoices with Norwegian VAT.
🔹 Import of remotely deliverable services
Norwegian VAT rules can surprise many foreign entrepreneurs. The key is to distinguish whether a service:
Not all foreign businesses are required to register in the Norwegian VAT Register (MVA-registeret). However, companies supplying goods and performing services that require physical presence in Norway—such as installation, assembly, or service work—must register.
⚠️ Remember! A company that delivers such services without registering may face tax liabilities and penalties.
In other countries, it is usually the buyer who accounts for VAT on these types of services. In Norway, however, there are specific rules.
Who Is Responsible for Accounting for VAT?
Remote services
If a service is not tied to a specific location in Norway, the obligation to account for VAT generally falls on the recipient (reverse charge mechanism). This applies to, for example:
- IT services
- Accounting services
- Consulting or marketing services
- Staff leasing
Exception: if the customer is a private individual, then the foreign supplier must register for VAT in Norway.
⚠️ Note: Staff leasing is subject to additional regulations unrelated to VAT. More on this topic can be found in our article about the ban on staff leasing in Norway.
Location-based services
If the service requires physical presence in Norway, the supplier must register for VAT and issue Norwegian invoices including VAT.
Examples:
- Installation and assembly of equipment
- Construction and electrical work
- Rental of trade fair stands
- Real estate services
- On-site inspections and audits
A Common Mistake – Installation in Norway
A typical case: a foreign supplier sells equipment to a client in Norway and also offers installation services.
Even if the equipment itself is sold directly to the Norwegian client, the installation service is subject to Norwegian VAT.
VAT Registration – When Is It Mandatory?
A foreign company providing location-based services in Norway must register for VAT once its turnover exceeds NOK 50,000 within 12 months.
To register, the company must first establish a NUF (Norwegian-registered foreign company) in the Brønnøysund Register Centre and obtain a Norwegian organization number. Only then can it issue invoices with Norwegian VAT.
Import of Services – How Does It Work in Practice?
🔹 Import of remotely deliverable services
- VAT is accounted for by the recipient (if it is a business or public entity).
- VAT registration is required for foreign companies when providing such services to private individuals.
🔹 Import of location-based services
- The supplier must register in Norway and account for VAT directly.
- The general rule under § 3-1 of the VAT Act applies unless a specific exemption is provided.
Summary
Norwegian VAT rules can surprise many foreign entrepreneurs. The key is to distinguish whether a service:
- can be delivered remotely (in which case the client usually accounts for VAT), or
- requires presence in Norway (in which case the supplier has VAT registration and reporting obligations).
It is important to verify before starting cooperation in Norway whether your company needs to be VAT registered. Incorrect handling may lead to tax arrears and additional costs.
👉 Do you need help with VAT registration in Norway or assessing whether your services are subject to VAT?
Contact Novum Økonomi – we support foreign companies in correctly managing taxes and compliance obligations in Norway.
Contact Novum Økonomi – we support foreign companies in correctly managing taxes and compliance obligations in Norway.
Questions about doing business & accounting services in Norway?
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