How to Calculate Norwegian VAT (MVA)

Norway's Value Added Tax (VAT), known locally as "Merverdiavgift" (MVA), is a consumption tax applied to most goods and services. Norway is not in the EU but has a VAT system aligned with EU principles. The standard rate is 25%, with multiple reduced rates of 15%, 12%, and 11.11% for specific categories. VAT is administered by the Norwegian Tax Administration (Skatteetaten). Although not an EU member, Norway maintains VAT compliance through the EEA agreement.

Adding VAT to a Price

When you need to add VAT (MVA) to a VAT-exclusive price, use these formulas:

Example for 25% standard rate: If the base price is kr 1,000 (excluding VAT):

VAT Amount = kr 1,000 × 0.25 = kr 250.00

Total Price = kr 1,000 + kr 250 = kr 1,250.00

Example for 15% food rate: If the base price is kr 1,000 (excluding VAT):

VAT Amount = kr 1,000 × 0.15 = kr 150.00

Total Price = kr 1,000 + kr 150 = kr 1,150.00

Example for 12% reduced rate: If the base price is kr 1,000 (excluding VAT):

VAT Amount = kr 1,000 × 0.12 = kr 120.00

Total Price = kr 1,000 + kr 120 = kr 1,120.00

Removing VAT from a Price

When you need to calculate the VAT-exclusive price from a VAT-inclusive price, use these formulas:

Example for 25% standard rate: If the total price is kr 1,250 (including VAT):

Base Price = kr 1,250 ÷ 1.25 = kr 1,000.00

VAT Amount = kr 1,250 - kr 1,000 = kr 250.00

Understanding Norway's VAT System

What is MVA (VAT)?

Merverdiavgift (MVA) is Norway's value-added tax. It's a consumption tax collected at each stage of the supply chain, with the final burden falling on the consumer. Although Norway is not an EU member, its VAT system is harmonized with EU principles through the EEA agreement. Businesses can claim input tax credits for VAT paid on business-related purchases, preventing tax accumulation.

The Four Norwegian VAT Rates

Standard Rate (25%): Applies to most goods and services including electronics, clothing, motor vehicles, alcohol, tobacco, and professional services.

Reduced Rate (15%): Applies to food and beverages including:

• Fresh and processed food items
• Fruits, vegetables, and agricultural products
• Bread and bakery products
• Milk and dairy products
• Meat and fish (most categories)
• Water supply and sewage services (effective July 1, 2025)

Reduced Rate (12%): Applies to specific services including:

• Passenger transport (buses, trains, flights)
• Hotel room rental and accommodation
• Cinema admissions
• Theatre and cultural events
• Sports events admission
• Amusement park entry
• Broadcasting services
• Vehicle transport on vessels

Reduced Rate (11.11%): Applies to wild marine resources including:

• Fresh and processed fish caught in the wild
• Other wild marine resources

VAT Registration Requirements

Businesses in Norway must register for VAT if:

• Annual turnover exceeds NOK 50,000 - Mandatory registration threshold
• Non-residents making supplies to Norway - Must register if making taxable supplies
• Specific activities - Certain activities trigger registration regardless of turnover

Businesses below the threshold can voluntarily register for VAT to claim input tax credits.

VAT Filing and Compliance

VAT-registered businesses in Norway must file VAT returns with the Norwegian Tax Administration (Skatteetaten):

• Quarterly Returns: Most businesses file quarterly VAT returns
• Monthly Returns: Some businesses may file monthly
• Annual Returns: Small businesses with low turnover may file annually

All VAT reporting must be done through Skatteteaten's online portal. Strict invoice requirements must be met, with invoice numbers never to be altered.

VAT-Exempt and Zero-Rated Supplies

Zero-Rated Supplies (0% VAT)

Zero-rated supplies have 0% VAT but allow input tax credits:

• Export of goods from Norway
• International transportation services
• Newspapers and books (printed publications)
• Certain publications and periodicals
• Financial services (in certain cases)
• International postal services

Exempt Supplies (No VAT, No Input Credit)

Exempt supplies are not subject to VAT and businesses cannot claim input tax credits:

• Healthcare Services: Medical and dental services, hospital care
• Education: Education provided by approved educational establishments
• Financial Services: Banking, insurance, investment services (mostly)
• Gambling and Betting: Lottery and betting services
• Certain Property Transactions: Sale and lease of certain properties
• Social Services: Social welfare services

Items Subject to 25% Standard Rate

The following are subject to standard 25% VAT:

• Electronics and appliances
• Clothing and footwear (except children's)
• Motor vehicles and parts
• Alcohol and tobacco
• Haircuts and beauty treatments
• Professional services
• Most entertainment services
• Household goods and furniture
• Gasoline and fuel (except marked agricultural diesel)

Items Subject to 15% Reduced Rate

The following are subject to 15% VAT:

• Fresh and processed food items
• Agricultural and horticultural products
• Water supply services
• Sewage services
• Rental of holiday homes (in certain cases)

Items Subject to 12% Reduced Rate

The following are subject to 12% VAT:

• Passenger transport (all modes)
• Hotel and accommodation services
• Cinema tickets
• Theatre tickets and performances
• Museum entry
• Sports events admission
• Amusement park entry
• Broadcasting services

Norway VAT Quick Reference

Frequently Asked Questions (FAQ)