- Norway has adopted new VAT rules for cross-border services within multi-location entities (MLEs), effective from 1 July 2026.
- The changes aim to ensure VAT is applied where services are used in Norway, addressing previous imbalances and aligning with OECD guidelines.
- The rules introduce a reverse charge mechanism for remotely deliverable services purchased abroad but used in Norway, covering both direct and indirect use.
- Businesses may face increased complexity, risk of double taxation (mitigated by a safety mechanism), and higher administrative burdens.
- VAT will be applied proportionally based on the extent of service use in Norway, requiring MLEs to estimate and document allocations.
Source: globalvatcompliance.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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