Norway propose increase in reduced VAT
VAT News Updates
19th October 2017: Norway set to increase the reduced VAT rate
The Norwegian Government recently announced it’s planned Budget 2018.
In the budget, it included a proposed increase in the reduced VAT (or MOMS as it’s known) rate, from 10% to 12%, to be in effect from January 2018.
It is expected that this reduced rate will soon increase to 15% – equal to the current intermediate rate, and thus disappear completely.
This lower VAT/MVA rate applies to:
- Travel & cultural services, such as hotel accommodation, mass transit and taxi fares.
- Admissions to cinemas, museums, sporting events, amusement parks, etc.
- Intermediation of such services by travel agencies, airlines etc.
It is important to be aware of this rate change, particularly in regards to foreign business and corporate travel to Norway. This will impact the VAT refund amount that can be gotten on hotels, accommodation, etc. in T&E expenses for companies.
Norway isn’t alone in its plan to increase their lower rate of VAT. The Dutch are also planning on implementing an increase in their reduced VAT rate from January 2018.
If you would like more information about this update, please contact our team for free bespoke advice.
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