- The Norwegian Tax Directorate amended the VAT regulation on June 20, 2025, establishing a new regulation § 5-12-1, which specifies the reduced VAT rate for the sale and extraction of water from waterworks and sewage services, effective July 1, 2025. The implementation date was changed from May 1 to July 1, 2025. Transition rules allow for simplified administration, with half of the 2025 water and sewage fees calculated at the standard rate (25%) and half at the reduced rate (15%), regardless of the actual delivery date. The regulation includes a transition rule that can be applied by taxpayers if conditions allow, without reducing subscribers’ rights under local regulations or agreements. Additionally, municipalities with annual or semi-annual billing are exempt from creating a detailed overview as per VAT regulation § 22-1-2. The reduced rate is limited to drinking water supplied from a water supply system.
Source: skatteetaten.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.
