Are the deadlines for reporting and payments the same as before?
Yes, the VAT return follows the same reporting periods and deadlines as the turnover statement does today.
Note the following two changes:
New businesses with a low turnover cannot be granted an annual reporting period until they have submitted returns for ordinary reporting periods for one year, with punctual reporting and payment. This represents a change from the current practice, where an annual reporting period can be granted upon initial registration.
If a business fails to submit a VAT return or make payments by the relevant deadline, the tax office may decide that it should be given monthly reporting periods instead of two-monthly reporting periods. (This is proposed in the Regulation pursuant to the new Tax Administration Act. The Regulation is currently being distributed for consultation.)
Is import VAT to be deducted during the same reporting period as that in which it is reported?
Yes. The date for customs clearance determines the reporting period in which the tax must be reported and deducted.
As both reporting and deductions take place at the same time and on the same VAT return, businesses with a full deduction will not have to pay any VAT. This will see the end of the current scheme where businesses must first pay Norwegian Customs and then claim a deduction back from the Norwegian Tax Administration.
How do we submit reports for tax payers with split activity?
Tax payers registered for VAT who carry on what is known as 'split activity' must be treated in the same way as all other businesses that are registered for VAT. If they are registered in the VAT Register, they must not report or pay import VAT when importing. They must report and pay the tax in the VAT return for the reporting reporting period.
Import VAT for the non-taxable part of the activity must also be reported and paid. In this case, there will only be an output tax without a corresponding deduction, because this part of the purchase will not be deductible.
How do we submit reports for municipalities?
Municipalities which are registered in the VAT Register must report all import VAT in the VAT return. Municipalities will claim deductions from the VAT return for the taxable component. They will claim refunds for the remaining VAT in the VAT return for VAT compensation (RF-0009) in accordance with the provisions of the Compensation Act.