- The Norwegian Ministry of Finance has proposed a consultation to address VAT imbalances, where international companies can currently avoid VAT on significant service purchases, while national companies face tax liabilities on equivalent services.
- The proposal aims to align VAT treatment for all businesses, ensuring equal competition in the market, particularly targeting the exploitation of tax rules by international financial institutions with cross-border operations.
- Additionally, the proposal includes expanding the right to deduct input VAT on remotely delivered services used outside Norway, aiming to mitigate tax burdens on international companies and is projected to generate around NOK 800 million annually.
Sources
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.
