VAT rates for cultural events, sports events and player rights

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As a general rule, the VAT rate for entry tickets for museums, galleries, amusement parks, major sports events, etc. is 10%.

The rate applies for the income year 2017

By "income year", we mean the year in which the income or expense arises. The rates for the income year are used in the tax return and tax calculation.


By "assessment year", we mean the year after the income year and in which the tax return for the income year must be submitted/checked and the tax calculated.

Entry tickets to exhibitions in museums and galleries

Goods or service

VAT rate

Remarks

Entry tickets

10%

General rule for entry tickets for cultural and sports events.

See also the VAT Tax Act, Section 3-1 first paragraph. 

Other services which come under general museum or gallery activity, e.g. teaching or tours,

10%

 

Other vatable activity, such as catering, cloakroom service and advertising.

25%

 

Sales of programmes, souvenirs, etc.

25%

The exception concerning sales of goods of insignificant value (NOK 100 or less) by charitable and benevolent institutions and organisations may apply. See the VAT Act, Section 3-12 first paragraph letter a

Mediation of entry tickets to museums and galleries. 

10%

The mediation of entry tickets to exhibitions which take place abroad are exempt from VAT. You can read more about the tax liability for mediation in Section 3-1 first paragraph of the VAT Act. The rules for the reduced rate are explained in Section 5-9 and Section 6-29 second paragraph (d) of the VAT Act. 

 

Entry tickets to amusement parks and experience centres

Goods or service

VAT rate

Remarks

Entry tickets and payment for activities which form a natural part of the product, e.g. roller-coaster rides.

10%

General rule for entry tickets for cultural and sports events.

 

Concerts and theatre and stage performances included in an entry ticket for amusement parks and experience centres.

10%

 

Concerts, theatre and stage performances in amusement parks and experience centres which are not included in the entry ticket.

0%

See the VAT Act, Section 3-7 first paragraph

Other vatable activity which is carried on by an amusement park or experience centre, e.g. café or restaurant activity and advertising.

25%

 

Sales of food and beverages from a kiosk in an amusement park or experience centre, for example.

15%

 

Sales of hunting or fishing rights, or the right to extract soil, stone or other materials from the ground

25%

This is because such sales must take place subject to identical conditions.  Private landowners must calculate VAT at the rate of 25 percent on sales of the same rights.

Access to fishing lakes or prospecting in disused mines or “gold-digging” in experience centres and amusement parks.

10%

 

Rental of goods at experience centres and amusement parks

25%

It is not considered letting when the public are permitted to use facilities in an amusement park, e.g. radio-controlled cars. 

Operation of amusement machines.

25%

A reduced rate applies if the use is included in the entry ticket.

Mediation of entry tickets to amusement parks and experience centres in Norway. 

10%

The tax liability for mediation is laid down in Section 3-1 first paragraph of the VAT Act; the scope of the reduced rate is stated in Section 5-10 of the VAT Act, and the exemption follows from Section 6-29 second paragraph (e) of the VAT Act. 

 

The mediation of entry tickets to amusement parks and experience centres abroad is exempt from VAT.

 

0% (Exempt)

 

Entry charges to funfairs and tickets for using various entertainment facilities at funfairs.

0% (Exempt)

Travelling funfairs must not calculate VAT on any entry fees or on fees which are paid in order to use various entertainment facilities. There is also no deduction entitlement for input VAT on purchases for this entertainment activity. See also the VAT Tax Act, Section 3-7 first paragraph.

Withdrawal VAT linked to free tickets or discounts

If a museum or gallery gives the public either free entry or entry at a reduced price, this will generally constitute a vatable gift withdrawal, or alternatively a withdrawal for advertising purposes. Ordinary discounts, e.g. for large groups of visitors, do not result in an obligation to calculate withdrawal VAT.

Exceptions for withdrawal VAT

You should not calculate withdrawal VAT if the value of the withdrawal is NOK 100 or less. It is the benefit for the individual recipient that is decisive for the threshold amount. If an entry ticket costs NOK 100 or less (inclusive of VAT), you should not calculate withdrawal VAT when students or pensioners, for example, have free entry. 

You should not calculate withdrawal VAT if the service is provided free of charge on a charitable basis. For example, free entry to people who would otherwise not have been able to afford to visit the place. Free entry for pensioners and students generally are not covered by this exemption. 

More about the obligation to calculate VAT in connection with withdrawals: VAT Act, Sections 3-21 to 3-26 More about the exception for goods of insignificant value: VAT Act, Section 3-23 More about the exemption for services which are provided free of charge on a charitable basis: VAT Act, Section 6-19 first paragraph 

Entitlement to deduct input VAT

Museums and galleries which are registered for the sale of entry tickets to exhibitions have a deduction entitlement in respect of input VAT on purchases for use within the enterprise.

This does not apply to input VAT on personal vehicles, catering, entertainment, construction and management of real property for residential or welfare purposes and subsistence for employees.  

Museums and galleries may deduct input VAT paid on purchases of works of art and antiques. The objects must be of the same kind as, or an element of, the exhibitions.

Some museums and galleries offer free entry to their exhibitions. These cannot deduct input VAT paid on goods and services purchased for use in the exhibition.   This is because they do not meet the condition for tax liability, i.e. that there must be a sale.

If the museum or gallery charges an entrance fee to certain sections only, there will only be a deduction entitlement for purchases made for these sections. As regards joint purchases, e.g. expenses for shared entrances, offices, etc., they will be able to claim a deduction for the part of the goods or service which is assumed to be intended for use in the vatable activity.  

More about the entitlement to deduct input VAT VAT Act, Sections 8-1 and 8-2; see Section 8-3 first paragraph (c) last part. 
More about the limitations on the deduction entitlement: VAT Act, Sections 8-3 and 8-4

 

Adjustment of input VAT

You must adjust previously deducted input VAT if the use of capital goods (fixed assets) changes from a purpose which gives entitlement to a deduction to a purpose which does not give such entitlement, or vice versa.

A museum or gallery which is registered for ticket income and constructs a building for use in its exhibition activity will be entitled to deduct input VAT paid on the construction costs. If the ticket income subsequently falls below the threshold amount, but the museum or gallery still has vatable activity linked to the building, e.g. café activity or advertising revenues, we will consider this to represent a change of use of the building. The change in use will require the enterprise to adjust the input VAT that it has previously deducted.

The relevant adjustment provisions are laid down in Chapter 9 of the VAT Act. 

Entry tickets to sports events

 

Goods or service

VAT rate

More information

Entry tickets to sports events

10%

When we assess whether or not an event is a sports event, we will check whether the activity is affiliated to the Norwegian Olympic and Paralympic Committee and Confederation of Sports (NIF). Entry to motorsport and trotting events will be covered by the tax liability.

 

Letting of other premises at sports facilities, e.g. the letting of premises for meetings, courses or conferences.

10%

Read more about the tax liability for mediation in Section 3-1 first paragraph of the VAT Act.

Other taxable turnover, e.g. from parking activity and advertising.

25%

 

Sale of food and beverages, e.g. from a kiosk

15%

 

Sale of programmes, souvenirs, etc.

25%

The turnover may be covered by the exemption concerning sales of goods by charitable and benevolent institutions and organisations of insignificant value (NOK 100 or less).

In connection with the letting of premises at sports facilities where the landlord is also responsible for catering.

25%

This must be calculated on the full fee if the catering is not insignificant in terms of amount. If the catering service is of insignificant importance, it should be subject to a rate of 25%, while the letting of the premises should be subject to a rate of 10%. These are the same rules as apply in connection with the letting of company premises in connection with catering; see the VAT Act, Section 3-11 second paragraph (b).  Read more about the scope of the reduced rate in Section 5-11 of the VAT Act.

Mediation of entry tickets to sports events which take place abroad.

0% (Exempt)

 

 

Player rights

Goods or service

VAT rate

More information

Sale and hire of sportspersons

25%

Entities that base their services on at least 80% voluntary contributions (sports clubs, etc.) are protected from this tax liability. You must be able to document the voluntary contribution in the event of an audit. Read more about this in Section 3-8 second paragraph of the VAT Act.

Sale and hire of sportspersons abroad

0% (Exempt)

If the buyer of the player rights is a foreign business, the sale or letting will be exempt from VAT under Section 6-22 second paragraph of the VAT Act.  

If the sale or leasing of player rights takes place to a buyer abroad that is not a business and the player will actually be used abroad, the sale will be exempt from VAT under Section 6-22 first paragraph of the VAT Act; see second paragraph, second point. 

 

Entitlement to deduct input VAT

Entities that are registered for sports events (ticket revenues) are entitled to deduct input VAT paid on purchases for use in activity with such turnover. This does not apply for example to purchases of personal vehicles, catering services, works of art and antiques, entertainment, construction and management of real property for residential or welfare purposes or subsistence for employees, etc. The deduction entitlement also does not apply to VAT paid on subsistence and beverages for use by players during matches and training.  

The deduction entitlement for input VAT is subject to the condition that the purchases are intended for use within the registered enterprise. If a registered sports organiser constructs a sports facility which will also be loaned to the sports club, the input VAT must be allocated. In such cases, the sports facility must also be considered for use for purposes outside the registered activity. 

The deduction entitlement for input VAT follows from Sections 8-1 and 8-2. The limitations in the deduction entitlement are set out in Sections 8-3 and 8-4 of the VAT Act. 

Adjustment of input VAT

Registered enterprises must adjust previously deducted input VAT if the use of capital goods (fixed assets) changes from a purpose which gives entitlement to a deduction to a purpose which does not give such entitlement, or vice versa.

A sports club which is registered for ticket income and constructs a sports facility for use in this vatable activity will be entitled to deduct input VAT paid on the construction costs. If the ticket revenue falls below the threshold amount for registration (see Section 2-1 second paragraph of the VAT Act), but the club still has vatable activity linked to the sports facility, e.g. advertising revenue, this will be deemed a change of use. The change in use will require the enterprise to adjust the input VAT that it has previously deducted.

Read more about the adjustment provisions in Chapter 9 of the VAT Act. 

Withdrawal VAT

If entry to a sports event is either free or discounted for individuals or groups, this will generally be deemed a vatable gift withdrawal, or alternatively a withdrawal for advertising purposes. However, ordinary discounts, e.g. for large groups of visitors, do not result in an obligation to calculate withdrawal VAT.  

Withdrawal VAT should also not be calculated if the value of the withdrawal is insignificant, i.e. NOK 100 or less. It is the individual benefit for the individual recipient that is decisive for the abovementioned threshold amount. If the entry ticket costs NOK 100 or less (inclusive of VAT), you should not calculate withdrawal VAT when students or pensioners, for example, are given free entry. 

Withdrawal VAT should also not be calculated if the service is provided free of charge on a charitable basis. For example, free or discounted entry for people who would otherwise not have been able to afford to visit the place. Free entry for pensioners and students generally will not be covered by this exemption. 

Withdrawal VAT must be calculated if staff are loaned between a club and a separate company. It is a condition that the person provides services which are sold in, used in or otherwise linked to the vatable activity. 

The obligation to calculate VAT follows from Sections 3-21 to 3-26 of the VAT Act. The exception for goods of insignificant value is laid down in Section 3-23 (d) of the VAT Act, while the exemption for services which are provided free of charge on a charitable basis follows from Section 6-19 first paragraph of the VAT Act.

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