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Vat Registration in Norway for foreign business

If a foreign business not having any establishment in Norway makes taxable supplies there, the business should be VAT registered through the help of a representative.
In this case the representative should not be a competent auditor or accountant, only applicable eligibility is that he or his business is inhabitant in Norway. Both the foreign business and the representative must sign the registration form mutually.

The foreign business will maintain a full individual account for its taxable activity in Norway. The representative will also maintain a separate complete account for purchases and supplies made by the foreign business in Norway.

All the invoices for the supplies made by foreign business to Norway should be handed over to the representative. The representative will himself mark the invoice with his name and address, the foreign registration number/organization number foreign business followed by the letters MVA and the VAT (output tax) for the total supplies.

Both the foreign business and the representative will be held liable for the VAT calculation and the payment.

The following conditions should be fulfilled for getting VAT refunds for foreign business in Norway

1. the eligibility does not arise for foreign business to be VAT registered in Norway;
2. the VAT is concerned with the applicant’s business activities performed in abroad;
3. the business is executed in Norway and eligible for registration along with the Norwegian Act concerning VAT. The VAT will be deductible in this case.
4. achieve an invoice from the shop

Obligations and rights as a result of registration in the vat register
As per the provision stated in Norwegian VAT Act, section 21, registered foreign businesses will have to calculate and reimburse VAT (output tax) on their supplies of goods and services in Norway. A foreign business is eligible to deduct VAT paid on goods and services going to be used in his Norwegian business (input tax). The deductions will be applicable if VAT is collected through the Customs authorities at the importation of goods and VAT paid on the purchase of services from abroad.

Foreign business will have to submit returns on a bimonthly basis to the County Tax Office. There exists some exception if input tax regularly surpasses output tax by 25 percent or more. If the supplies for taxable persons will come under NOK 1 million annually, he has the option to submit an application for VAT refund.

The foreign business has to submit the VAT return and pay VAT one month and ten days after the end of each period.

The Central Coordinating Register for Legal Entities (CCRL) is considered as a central register of economic entities in Norway. It has six associated registers:

1. the Register of Employers
2. the Register of Business Enterprises
3. the County Governors' Register of Foundations
4. the Value Added Tax Registration List
5. the Business Register of Statistics Norway
6. the Corporate Taxation Data Register

All businesses that are registered in an associated register must be registered in the CCR and acquire an organization number. A form alias the “co-ordinate registration notification” form is obtainable, which is also considered as a general registration form for registering with the CCR and associated registers. The consist of the following parts:

1. Part 1 – Main form
2. Part 2 – Supplement for the Value Added Tax Registration List.

Part 2 of the synchronized registration notification form must be filled up as business activities regarding business supplies initiate or are taken over which comes under the provisions of the VAT Act. It is also usable in the event of the cessation, closing down or transfer of taxable business activities. It must be submitted to the County Tax Office in the county of residence, to the CCR, or to one of the other associated registers. Part 2 should be sent only if the application is for registration in the VAT registration list for businesses that are already registered in the CCR. It is a precondition, however, that all the necessary information on the main form was provided upon registering with the CCR.



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