VAT AND TAX

VAT returns and the tax return

An error in the VAT return can lead to additional tax, and a missing tax return can lead to an enforcement penalty. We take these filings on for you and check them before they are submitted. Greenleaf is an approved accounting firm and files VAT and tax returns for limited companies, sole proprietorships and holding structures across Norway.

The VAT return

Most VAT-registered businesses file every two months. We reconcile the documents, check the rate – 25 per cent as the main rule, 15 per cent on food and 12 per cent on passenger transport, accommodation and cinema among others – assess zero-rated and exempt transactions, calculate VAT on imported goods, handle the reverse charge on purchases of remotely deliverable services, and file the return. You get the figures and the payment details well before the due date. Not everyone files every two months. Small businesses can apply for annual filing, subject to conditions. Errors in the VAT return can be costly. Input VAT has to be documented to be deductible, so missing or incorrect documentation can mean the business loses the deduction. Errors can also make it necessary to correct VAT returns that have already been filed. We can go through earlier returns, find discrepancies and help you with the corrections needed.

The tax return

Limited company: the tax return with its business specification is due 31 May, including in a year with no turnover. We calculate the tax, check accruals and depreciation, and file with the documentation in place. Sole proprietorship: the business figures form part of your personal tax return through the business specification, with the same deadline. We make sure deductions for a home office, mileage, phone, professional literature and pension are handled correctly. A one-month extension can be applied for, but it does not arrive on its own – the application has to be sent before the ordinary deadline. Electronic applications are granted automatically, and the new deadline for businesses is 30 June. Errors in the tax return can be costly too. Incorrect or missing information can lead to the wrong tax, or to the business missing deductions it is entitled to. Both limited companies and sole proprietorships can amend their own tax return for the last three income years, and we can go through earlier tax returns and help with corrections where needed.

Cross-border VAT and the reverse charge

If you buy remotely deliverable services from abroad – advertising, cloud services, software – you generally have to calculate and report the VAT yourself under the reverse charge rules. This is among the most commonly forgotten obligations in small businesses. The rules are not the same for every service, and construction work on Norwegian property follows different rules again.

What if a document is missing just before the deadline?

Do not guess. Try to get the documentation from the supplier. If it does not arrive in time, the return is still filed by the deadline on the basis of what can be reported correctly – and amended once the documentation exists. For recent periods you can normally file a new VAT return for the same period, and the most recent filing is the one that applies. Self-correction can generally be made within three years of the original deadline. This is why we agree an internal deadline ahead of the public one, so a missing document surfaces while there is still time to get it.

What happens if something is not filed?

The Tax Administration does not start charging the day after the deadline. First comes a notice and a conditional decision with a new deadline. If that one passes too, the enforcement penalty begins to run. It stops when the information is filed or the maximum is reached. One thing worth knowing in advance: if the Tax Administration has assessed VAT by discretion because the return was missing, you should normally not send an ordinary letter of appeal. File the missing return – it is then treated as an appeal against the assessment. If you have had notice of a change or of additional tax, we help with the correspondence and the documentation. If you find an old error yourself, there are separate rules on voluntary correction.

Frequently asked questions

When is the VAT return due?

The main rule is one month and ten days after the period ends. The exception is May–June, which is due 31 August. The other deadlines are 10 April, 10 June, 10 October, 10 December and 10 February.

What happens if the VAT return is wrong?

If the business gives incorrect or incomplete information that could produce a tax advantage, additional tax can be imposed. The ordinary rate is normally 20 per cent of the advantage, and in cases of intent or gross negligence aggravated additional tax can be added on top, bringing the total to 40 or 60 per cent. We reduce the risk by reconciling before filing.

Can we avoid VAT if we are small?

You are not required to register until VAT-liable turnover and withdrawals have exceeded NOK 50,000 within a twelve-month period. Before the threshold is reached, advance registration may be possible subject to conditions, for example where the business makes significant purchases directly connected to later VAT-liable turnover. That is different from voluntary registration, which applies to letting commercial property among other things.

How do you file the tax return?

Electronically on your behalf. For a limited company, the tax return with its business specification is filed from an accounting or year-end system. A sole proprietorship can file from such a system or on skatteetaten.no, but where it has a duty to prepare annual accounts (regnskapsplikt) or to be audited, the business specification has to be filed from an accounting or year-end system. You get a review before filing and can approve the final figures.

Get your VAT and tax filings in order

We take over the filings and make sure deadlines, deductions and documentation are in place. Get in touch for a quote.