New VAT Compensation Rules from 2026: Easier Applications and Lower Costs for Local Organizations

• The new regulation for VAT compensation will make it easier for local organizations to apply, allowing them to focus more on activities.
• The requirement for a state-authorized auditor is raised from 5 million to 7 million kroner, reducing costs for over 95% of recipients.
• The threshold for making deductions in the simplified model is also raised from 5 million to 7 million kroner.
• The term “benefit the public sector” is removed from the rules.
• The new regulation takes effect in 2026, with guidance to be provided before the September 1, 2026 application deadline.

Source: regjeringen.no

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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