- Loss Recognition on Receivables: Starting January 1, 2026, businesses can only recognize VAT losses on trade receivables between related parties within a 24-month period from the date VAT is calculated. After this period, receivables may be reclassified as loans, which do not qualify for VAT deduction, unless the debtor is under estate administration. Existing VAT regulations will apply for calculations made before this date.
- VAT on Remotely Deliverable Services: From July 1, 2026, foreign enterprises will be required to calculate VAT on remotely deliverable services consumed by their Norwegian branches. This change aims to equalize tax burdens between Norwegian and international companies by ensuring VAT is applied to services used in Norway, with provisions to avoid double taxation if VAT is already paid abroad.
- Reduction of VAT Exemption for Electric Cars: Effective January 1, 2026, VAT exemption for electric cars will be limited to sales prices up to NOK 300,000, down from NOK 500,000. The government plans to phase out the exemption entirely by January 1, 2027, contingent on EFTA Surveillance Authority approval, with proposals to further reduce the threshold to NOK 150,000 in 2027 and to NOK 0 by 2028.
Source Grant Thornton
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