Norway: Consultation on VAT rules for remote services
Intended to support the new allocation approach for cross border remote services within multinational groups
The Norwegian Tax Directorate launched a public consultation on a proposed bill amending the practical rules on when VAT becomes payable in light of the upcoming remote services reforms effective July 1, 2026.
The proposal would allow businesses to report VAT using budgeted allocations over periods of up to 12 months, distribute amounts across reporting periods, and later reconcile those allocations to actual costs. The alternative timing rule is optional but must be applied consistently to all relevant services within the scope of Section 3-30 (2) and (3) for the chosen budget period; mixing with the ordinary timing rule is not permitted.
The proposal is intended to support the new allocation approach for cross‑border remote services within multinational groups, when Norwegian VAT may apply to services acquired externally but used wholly or partly in Norway.
The proposed amendments would also expand input VAT deduction or refund when services acquired in Norway are used by foreign establishments and narrow reverse‑charge obligations in cases of fully deductible use.
For more information, contact a KPMG tax professional in Norway:
Petter L'Orange Svensson | petter.svensson@kpmg.no
Thor Inge Skogrand | thor.skogrand@kpmg.no