Due to the Covid-19 pandemic, the Norwegian Government has introduced several emergency measures earlier this year. The services previously subjected to the reduced VAT rate of 12% were temporarily reduced to 6% from the 31st of March, 2020. The temporary reduction in the VAT rate was expected to last until the end of October 2020. Several political parties have suggested postponing the change of the VAT rate to the 1st of January, 2021.
The governing parties have agreed to continue the reductions of the low VAT rate from 12% to 6%. The 6% rate applies to passenger transport, accommodations, public broadcasting, cinemas, museums, amusement parks, and large sporting events.
This was officially confirmed last week in the Official journal.
Contribution by JB Fiscal Consulting
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