Foreign companies in Norway will be able to choose to register or not to register for VAT through a representative in accordance with the amendments to the Law on VAT proposed by the Government.
In a statement, the government said the proposed changes are designed to simplify the process of VAT registration and therefore reduce administrative costs for non-resident companies which carry out taxable supplies in Norway. As well as the use of a local representative is required for registration.
Under the current VAT rules companies that do not have a permanent establishment in Norway but making taxable supplies worth more than $ 5,400 per year must register for VAT.
However, the government intends to abolish this requirement and instead to allow non-resident companies to choose whether they want to register a VAT through a local representative. The new rules will apply to companies established in the European Union area.
The Government has yet to decide when they introduced the proposed changes.