Norway cuts 12% reduced VAT rate to 6%; delays returns on COVID-19 crisis

7 Mar - six-monthly payment plans options for approved taxpayers is being extended. The new end period for the payment plan is 30 June instead of 28 February 2021.

3 Feb - VAT deferrals available between 28 Feb and 12 Apr, but there is an 8% interest charge.

26 Nov - the temporarily reduced 6% VAT rate has been extended until June 2021. This applies to accomodation; leisure and transport

25 Nov - VAT payments may be defered until February 2021, and then allow for up to six monthly payments between April and September 2021.

20 Oct - the reduction to 6% VAT rate for hotels, tourism, cultural admissions and public transport has been extended again.

13 May update - Jan-Feb VAT return filing deadline has been extended from 14 April to 10 June 2020.

7 April update. Standard Audit Files for Tax (SAF-T) accounting transaction reporting submissions due by 10 April may be postponed on application.

Update: Norway has cut its reduced VAT rate for a second time during the coronavirus crisis. This time on 27 March from 7% to 6%.  This will still apply from 1 April until 31 October 2020.

On 20 Norway, the Norwegian government will cut its reduced VAT rate from 12% to 7% between 1 April and October 2020. The rate applies to cinema admission, public transport, hotel accommodation services, entrance to cinemas, museums and amusement parks.

The rate was set in 2018 following a rise from 10%.

The VAT payment for the first returns has now been deferred from the 10th April deadline until 10 June.

Follow Avalara’s live  global coronavirus Covid-19 VAT measures tracker.

In other measures, Norway will offer companies at least kr100 billion (Norwegian Crowns) in funding in the form of guarantees for loans and bond issues to support the economy during the coronavirus outbreak, the government said earlier this week.