Taxi owner
There are several requirements for businesses that operate taxi and cab services.
Here you can get help to understand the tax rules and what you need to provide in your tax return.
Does this apply to me?
This applies to you if you’re a taxi owner and is considered self-employed.
You must have a taxi license and your own business, such as a sole proprietorship or private limited company. See the advantages and disadvantages of private limited companies and sole proprietorships (Altinn.no)
What you need to do
Tax deduction card and advance tax
Check your tax deduction card, and remember to pay advance tax. You must pay advance tax on the expected profits.
Accounting
You must keep accounts. Record the income and expenses you have in the business continuously throughout the year.
All businesses have a bookkeeping obligation and must keep accounts. Private limited companies also have an accounting obligation. This means that private limited companies must keep continuous accounts and must also submit annual accounts that show the profit, balance sheet and notes as a minimum.
The annual accounts must be submitted to the Register of Company Accounts in Brønnøysund. The submission of the annual accounts must be done in addition to the submission of the tax return to the Tax Administration.
Income and expenses
Self-employed taxi owners must enter income and expenses in the accounts.
You must install a taximeter in the taxi. All payment of taxi journeys by card, mobile phone (including Vipps), or cash must be registered in the taximeter.
You must prove this payment with shift slips and a report from the taximeter that shows each sale. The shift slips must be numbered continuously by the system, and it must also contain the license number and serial number on the taximeter.
Sales revenue
Examples of sales revenue: Revenue from driving passengers and goods. Other income from transport.
The sale of used equipment that is not depreciated in the balance sheet, such as used office equipment, must also be included as sales revenue.
Other income
Examples of other income: Public subsidies
Expenses
Operating expenses such as car expenses, expenses for telephone, internet and office supplies, leasing or rental expenses, and salary expenses.
If you run a sole proprietorship and use a room in your own home for home office, you can claim a deduction under the rules for home office.
Car expenses
Examples of car expenses: Fuel (including electricity for electric cars), service and other maintenance, insurance, membership in a car recovery company, expenses for roadside assistance.
You’re entitled to deductions for road tolls and parking when you drive in connection with the business. This should be entered as travel expenses, not as car expenses
- Car expenses and sole proprietorships:
If you run a sole proprietorship, different rules apply for deductions depending on whether you use the car only for taxi business or whether you use the car both privately and in the taxi business. If you only use the car for the transport business, you can claim a deduction for all car expenses. If you also use the car for private driving, you will only be entitled to a deduction for the portion of the expenses that relate to the taxi business. More about deductions for the use of a car for business purposes. - Car expenses and private limited companies
Private limited companies can claim deductions for all expenses for cars. If the car is used privately by the owner or other employees, the benefit of private use must be assessed and reported on the a-melding together with other salary. If the owner is not employed by the company, the benefit of private use of the car must be declared as a dividend.
Assets in the business
If you have assets that are used in the business, such as a car, you can claim a deduction for depreciations. Depreciation means that you get a deduction for the purchase price as the car is used and worn. This means that you’re not entitled to a deduction for the entire purchase price in the accounts in the year of purchase but will instead receive it over time.
There are exceptions for assets that cost less than NOK 15,000 (NOK 30,000 in 2024), then you’re entitled to a deduction for the full amount in the year you buy the asset.
Read more about Deductions for purchases - The Norwegian Tax Administration
More about other relevant deductions: Topics and deductions for businesses
Fill in the business information in the tax return
The accounts form the basis for completing the business information. You must state all the income and expenses from your business activity.
Information about the taxi
Information about the taxi must be entered in the field for "Commercial vehicle". You must fill in a field for each car.
Information for those who have a taxi licence
Under the topic "Other circumstances" and "Licence for taxi and cargo transport”, you must provide additional information about the taxi business. If you have several taxi licences, you must provide information about each licence. If you use several cars for each permit, you must provide information about each car.
Please note that the information you provide about income in this field is only additional information. You must enter income and expenses in the business in the fields for income and expenses elsewhere in the business information.
- licence number
- the vehicle's registration number
- number of litres of fuel used
- income from transport from public enterprises paid by card or invoice
- income from other passenger transport paid by card or invoice
- income related to other types of goods transport paid by card or invoice
- number of kilometres driving school children
- tips paid by card or invoice
- income from transport paid by cash
- tips paid by cash
- type of taximeter
- number of kilometres from passenger/road freight transport registered on the taximeter
- amount for unsuccessful trips registered on the taximeter
- is the taxi business linked to a taxi dispatch centre (include the name of the office)
Tax return
You must submit the tax return with the business information by 31 May at the latest.
The tax return for private limited companies and other types of companies must be submitted through an accounting or annual accounts system.
The tax return for sole proprietorships can be submitted through an accounting or annual accounts system or submitted directly at skatteetaten.no. Sole proprietorships with an audit obligation must submit the tax return through an accounting or annual accounts system.
If you have a sole proprietorship, you must calculate and state personal income for your business activity.
Value added tax
If you’re registered in the Value Added Tax Register, you must submit VAT returns.
If you run a taxi business and have sales revenues of more than NOK 50,000 over a period of 12 months, you must register in the Value Added Tax Register
When you’re registered in the Value Added Tax Register, you must calculate value added tax at a reduced rate on sales revenues from passenger transport. The reduced rate is currently 12 percent.
You can deduct value added tax on purchases for the taxi business when you are registered in the Value Added Tax Register. An example is expenses for the operation of the car, such as service and fuel.
More information about value added tax: How VAT works - The Norwegian Tax Administration.
You can claim a deduction for the value added tax you pay when you buy a new taxi.
Using the car outside of your taxi job is considered as private driving. You cannot claim a deduction for the value added tax regarding the portion of the driving that is private use. In this case, you must allocate the paid value added tax between the driving that gives the right to a deduction and the driving that does not give the right to a deduction.
Read more about deductions and allocation of value added tax. Here you’ll also find good examples of how to allocate the value added tax.
You’ll get a deduction for the value added tax you pay when you buy a new taxi. If the taxi is a passenger vehicle and you sell or stop using it in the taxi business before 4 or 8 years have passed, you must repay part of the value added tax. The length of the binding period depends on when you bought or leased the taxi.
The obligation to repay value added tax only applies to passenger vehicles used as taxis (for example, passenger cars).
This also applies if the taxi was delivered after this date, but the purchase agreement was entered into before 14 May 2024.
If the taxi is sold within 4 years of being registered in the motor vehicle register under the company, you must repay part of the value added tax that you were entitled to deduct when you bought the car. The same applies if you change the use of the car yourself to private use only.
When you’re calculating the amount that must be repaid, you must take into account the number of months the car has been used as a taxi. You do this by deducting 1/30 for each month the car was used in the first year and then 1/60 for each full month the car was used in the following three years, calculated from the date of registration.
You do not have to repay value added tax when the sale or change of use is due to the car being condemned, if you are undergoing bankruptcy proceedings or public debt negotiations, or if the owner dies.
Example of how to calculate an amount for reversal
The deducted value added tax when you bought the taxi is NOK 90,000. The use of the car will be changed to private use after 20 months.
Deducted VAT NOK 90,000
– NOK 90,000 x 12/30 = NOK 36,000
– NOK 90,000 x 8/60 = NOK 12,000
Amount to be reversed NOK 12,000
If the taxi is sold within 8 years of being registered in the motor vehicle register under the company, you must repay part of the value added tax that you were entitled to deduct when you bought the car. The same applies if you change the use of the car and only use it privately.
How to calculate the amount:
VAT to be deducted at the time of purchase x The value of the car at the time of sale (change of use)
The value of the car at the time of purchase
You use the new price as the value when buying and the market price as the value when you sell or change the use of the car.
You do not have to repay value added tax when the sale or change of use is due to the car being condemned, if you are undergoing bankruptcy proceedings or public debt negotiations, or if the owner dies.
Example of how to calculate the reversal amount
You buy a new taxi for NOK 1,250,000 (new price). Deducted value added tax on the purchase is NOK 250,000.
The use of the car is changed to private use after 4 years. A valuation from a car dealer shows that the market value of the car is NOK 625,000 when you change its use.
VAT to be repaid:
NOK 250,000 x NOK 625,000 = NOK 125,000
NOK 1,250,000
Estimated amount in the event of missing accounting documents
If you do not have access to accounting documents, you can use estimated amounts. The calculation for reversal will be the same as if you have access to accounting documents, but the deducted input value added tax and the value of the car at the time of purchase are estimated. Estimated amounts only apply in cases where you sell or change the use of the car more than 5 years after the accounting year in which the car was purchased and registered. The five-year period is calculated from the end of the year of purchase and five full years into the future.
Specific information if you
As an employer, you must report salary, employer's national insurance contributions, and deduct tax. The reporting takes place via the a-melding.
Who must submit the a-melding - The Norwegian Tax Administration
More about your duties: The role as an employer – The Norwegian Tax Administration.
If you’ve been granted a full or partial exemption from the one-off registration tax when you bought the taxi and you stop using it in your business within 3 years, you must pay the part of the one-off registration tax that remains. To keep the reduction in the one-off registration tax, you must use the taxi in the business for 3 years.
Report changes in use: Write to us - The Norwegian Tax Administration
Requirements for a taxi licence
Enterprises running a taxi business must have a taxi licence. You can read more about the rules and apply for a permit on the website of the county municipality in the county where the company is registered.
Requirements for a taxi driver exam and passenger carrying vehicle (PCV) driver’s licence requirement
Those who drive taxis are required to have passed a taxi driver exam and have a passenger carrying vehicle (PCV) driver’s licence. More about taxi driver CPC at the Norwegian Public Roads Administration and driving licence at the police.