Exemptions from the VAT obligation
Some enterprises and services are exempt from the scope of the VAT Act. If you run such an enterprise, you should not be registered in the VAT Register or calculate VAT on your sales. You will then also not be entitled to deductions for VAT on purchases you make for your enterprise.
Services which are exempt from the VAT Act include:
- health services (e.g. doctors, dentists, psychologists, chiropractors, physiotherapists, dental technicians and ambulance services)
- alternative forms of treatment provided by authorised medical personnel or practitioners registered with the voluntary register scheme for practitioners of alternative treatments
- social services (e.g. minding of children in private or municipal pre-schools, care services in nursing homes and home help services)
- teaching services (including school teaching, leisure-oriented teaching and driving instruction)
- cultural services (including theatrical, operatic, ballet, circus and dance performances with live music)
- services in the form of artistic performances of intellectual property and the mediation of such services. The exception also covers services which are an integral and essential part of the performance.
- guide services
- financial services (e.g. insurance, financing services, payment assignments, valid payment means, financial instruments and securities fund management). The exception also covers broker services linked to financial services)
- lottery services
- ceremonial services in connection with funeral and burial services
- provision of public authority services (e.g. registration procedures and issuing of passports and driving licences)
- sale and letting of real property and rights to real property.
There are a number of important exceptions from the latter exemption, which mean that the sales may still be subject to VAT. This applies for example to turnover relating to the letting of rooms in the hotel sector, the commercial letting of holiday properties, the leasing of parking spaces in the parking sector and the letting of storage units. It is also possible to register voluntarily in connection with the letting of real property for use in activity which is subject to VAT.
Contact the Norwegian Tax Administration for an assessment if you are unsure whether or not your enterprise is exempt from the VAT obligation.