This also applies within the sharing economy, where private individuals sell services such as renting out property (however, see below for renting out residential property).

VAT becomes relevant when activity is  of a scope that means  it is considered to be business activity. The business activity requirement means that the activity must have a certain duration and scope, be able to generate a financial profit in the foreseeable future and be carried out at the owner’s own expense and risk.

The assessment has similarities with the assessment of activity for tax purposes, , and the information that is provided for this kind of assessment , e.g. what distinguishes a hobby from a business activity, can generally also be used as a basis for the assessment in relation to VAT. Such distinctions can sometimes be difficult to determine. If you are unsure, you can contact us. You can also read more at “How VAT works”.

In one respect, the assessment for VAT differs from that for tax:

In the case of VAT, it’s a requirement that turnover exceeds NOK 50,000 over a period of 12 months before the obligation to register arises. For more information on how this threshold is calculated, see “Do I have to register in the VAT Register?”.

Letting of housing

The letting of housing (houses, apartments or individual rooms) is considered as letting of real property, and this constitutes a rental service that is exempt from the obligation to calculate and pay VAT.

This means that you can let housing without having to consider the obligation to pay VAT, even if you earn more than NOK 50,000 over a 12-month period.

There is an important exception from this general rule:

If the scope and nature of an activity means that it's similar to hotel activity, or if the activity involves the letting of a holiday home (cabins or holiday apartments), there's still an obligation to calculate VAT. This assessment can be difficult and we recommend that you contact us to find out more.