Norway Proposes VAT Amendments for Cross-Border Services to Ensure Equal Tax Treatment

• The Norwegian Ministry of Finance is consulting on changes to VAT rules for remotely delivered services.
• These services include marketing, consulting, and ICT services.
• VAT is based on the destination principle, meaning it is due where services are consumed.
• International companies have an advantage over Norwegian companies under current rules.
• The consultation proposes extending VAT obligations to international companies using services in Norway.
• It also suggests expanding VAT deduction rights for services bought in Norway but used outside.
• A special rule is proposed for equal treatment of international and local companies selling financial services.
• Norway is the first European country to propose using the OECD model for these services.
• Consultations are open until June 21, 2025, for public input.

Source: vatabout.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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