What are the MVA (VAT) rates in Norway?

Norway's MVA (merverdiavgift) system has three positive rates plus zero-rating and exemption categories. Understanding which rate applies to which goods and services is critical for correct invoicing and MVA recovery.

25% standard rate

The 25% rate is the default — it applies to everything not specifically covered by a lower rate or exemption. This includes: - Professional services: consulting, legal, accounting, IT, marketing, management - Software and SaaS products - Electronics, computers, phones, appliances - Clothing and footwear - Restaurant and café meals and takeaway food (hot or with table service) - Alcoholic beverages at all points of sale - Entertainment and leisure activities (gym memberships, active sport participation — note: this is different from spectator sport at 12%) - Advertising services - Construction and repair services - Most retail goods not specifically categorised below

15% reduced rate — food and non-alcoholic beverages

The 15% rate applies to food and non-alcoholic drinks sold at the point of retail — supermarkets, shops, kiosks, market stalls. The key test is: is this a sale of food/drink itself, or a restaurant/catering service?

15% applies to: - Fresh produce, vegetables, fruit - Packaged foods, tinned goods, bakery products from a shop shelf - Non-alcoholic beverages (water, soft drinks, juices) in bottles and cans sold at retail - Baby food and specialist dietary products - Pet food (treated as food)

25% applies (NOT 15%) to: - Restaurant meals and café drinks, regardless of content - Hot takeaway food sold at counters - Catering services - Alcoholic beverages at all rates

The line between 15% food retail and 25% restaurant can be complex. A deli counter selling cold pre-packaged sandwiches: typically 15%. The same sandwich heated in a microwave for a customer: arguably 25%. Skatteetaten has published guidance (bindende forhåndsuttalelser) on various specific cases.

12% low rate

The 12% rate applies to: - Passenger transport: all modes — domestic flights, train, bus, tram, metro, boat/ferry, taxi for passengers - Hotel and guesthouse accommodation - Holiday cabin letting (hytteutleie) - Camping sites - Cinema tickets - Sports event entry (as a spectator) - Amusement parks and similar entertainment venues - Museum entry (some)

Does NOT apply to: - Car hire (25%) - Freight transport (25%) - Gym memberships and active sport participation (25%) - International transport — typically zero-rated, not 12%

Zero-rated (0%)

Zero-rated supplies are within the MVA system — the supplier is MVA-registered and charges 0%, but can still recover input MVA on related purchases. This is different from exempt supplies.

Zero-rated includes: - Export of goods outside Norway - Services performed outside Norway's MVA territory - Newspaper and periodical subscriptions (physical) - Physical books - Services to vessels and aircraft in international service - Supplies to oil platforms on the Norwegian Continental Shelf

Exempt (outside MVA)

Exempt supplies are outside the MVA system — no output MVA charged, and no input MVA recovery on related costs. Partial exempt businesses must apportion input MVA: - Financial services (banking, insurance, securities trading) - Healthcare and medical services - Education and courses - Social services - Letting of residential property (long-term) - Funeral services - Lottery and gambling services - Postal services

Reverse charge on imported services

When a Norwegian MVA-registered business buys services from abroad (Google Ads, AWS, Microsoft 365, LinkedIn ads), the Norwegian business must account for 25% output MVA via the reverse charge mechanism. This is reported on the MVA return as both output MVA (sales to self) and input MVA (recoverable if used for taxable activities), typically netting to zero for fully taxable businesses. Foreign suppliers of digital B2C services must register under the VOEC scheme.