Norwegian VAT Imposed on International Cruises Within Norwegian Waters, Court Upholds Decision

• International cruises in Norway are affected by Norwegian VAT.
• Cruises starting and ending outside the Norwegian VAT area are only exempt from VAT when in transit.
• The Oslo District Court upheld a decision to impose VAT on parts of cruises within the Norwegian VAT area.
• VAT applies to passenger transport, catering, and other taxable services within the area.
• The judgment has been appealed, but no hearing date is set.
• For VAT exemption, a cruise must be in transit, assessed by time spent, ports visited, and stay duration.
• Cruises in question started and ended in England and Germany, visiting multiple Norwegian ports.
• The District Court ruled that goods and services are subject to VAT unless exempted.
• VAT exemption does not apply to round trips within the VAT area over 24 hours.
• The cruise company’s argument of a long-standing practice was rejected by the court.

Source: kpmg.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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