Proposal for amendments to the VAT Act

The Government proposes amendments in the representative scheme of registration in the Norwegian VAT Register. The proposal will make it easier for foreign businesses to comply with their VAT obligations at a lower cost.

Under the current VAT legislation a taxable person which is not a resident or does not have a place of business in the Norwegian VAT area and makes VAT taxable supplies in Norway, shall be registered in the Norwegian Value Added Tax Register through a representative. The Government proposes to abolish the mandatory requirement to register through a representative for businesses resident or established in an EEA State. A condition is that there is an agreement in place between the EEA State and Norway providing for mutual administrative assistance in the exchange of information and the recovery of VAT. Such businesses may choose to be directly registered in the Value Added Tax Register as an alternative to the representative scheme.

Due to the practical implementation of the proposed changes in the representative scheme, it is proposed that the Government is authorized to determine when the amendments shall enter into effect.