Coronavirus - important information from the Tax Administration

Expenses for mobile phone, broadband, telephone, etc.

You may be entitled to a deduction for electronic communication services (EC services) that you use for business purposes: mobile phone, land lines, IP-telephone, broadband and Wi-Fi.

You'll be entitled to a deduction for your expenses for EC services you use for business purposes and not privately. Usually, you do this by deducting all expenses and adding the share that relates to private use to your income ("reversal"). If you do not use EC services privately, you must substantiate this.

What to do

You enter all expenses relating to EC services including VAT in the Income statement 1 item 6995 or in the Business Tax Return item 6800, reduced by the VAT on the business share (if you're vatable).

You reverse your expenses for private use under items 7098 and 2068.

Private benefit

The taxation is carried out through a standard fixed annual addition to your income of NOK 4,392. If the total costs for EC services are lower, the additional income will amount to the total costs.

All these figures apply to EC services throughout the whole year.

Calculation examples

When you use communication services for parts of the year, the calculation is based on full months and part thereof.

Used from 1 January to 5 May included (5 months)

Total costs NOK 6,250 incl. VAT

Total costs

NOK 6,250 incl. VAT

 

Calculated benefit

NOK 6,250

NOTE! max 5/12 of 4,392 = 1,830)

Reversal

NOK 1,830

 

 

Total VAT                     6,250 : 1.25 = 5,000 excl. VAT (i.e. 1,250 is VAT)

VAT private share       1,830 : 1.25 = 1,464 excl. VAT (i.e. 366 is VAT)

Under item 6995 of Income Statement 1, enter total costs excl. VAT on business.

1,250 – 366 = NOK 884 should be deducted from 6,250.

Enter NOK 5,366 under item 6995 of Income Statement 1 and NOK 1,830 under item 7098.

Total costs

NOK 12,500 incl. VAT

 

Calculated benefit

NOK 12,500

Max NOK 4,392 on one, two or more EC services

Reversal

NOK 4,392 

 

 

 

 

Total VAT                  12,500 : 1.25 = 10 000 excl. VAT, i.e. 2,500 is VAT

VAT private share   4,392 : 1.25 = 3,513 excl. VAT, i.e. 879 is VAT

Under item 6995 of the income statement, enter total costs excl. VAT on business.

2,500 – 879 = NOK 1,621 should be deducted from 12,500.

Enter NOK 10,879 under item 6995 of the income statement, NOK 4,392 must be reversed under items 7098 and 2068.

Total costs

NOK 6,250 incl. VAT

 

Calculated benefit

NOK 6,250

NOTE! max NOK 4,392,applies regardless of one or more EC services

Reversal

NOK 4,392

 

Total VAT         6,250 : 1.25 = 5000 excl. VAT, i.e.1,250 is VAT

VAT private share        4,392 : 1.25 = 3,513 excl. VAT, i.e. 879 is VAT

Under item 6995, enter total costs excl. VAT on business.

1,250 – 879 = NOK 371 should be deducted from 6,250.

Enter NOK 5,879 under item 6995, NOK 4,392 must be reversed under items 7098

See also

Tax on EC services (mobile phones, broadband, etc.) – New rules from the income year 2014 included.