Output and input VAT
Output VAT is VAT which you must calculate and collect when you sell goods and services, provided that you are registered in the VAT Register. Output VAT must be calculated both on sales to other businesses and sales to ordinary consumers. You must also calculate output VAT when you withdraw goods or services for private use as a registered business. VAT must also generally be calculated when you withdraw goods from the vatable part of the enterprise for use in the non-vatable part.
Input VAT is VAT which is included in the price when you purchase vatable goods or services for your business. If you are registered for VAT, you will be able to deduct input VAT against output VAT in your VAT return.
Example calculation of output and input VAT
Butikken AS, which is registered in the VAT Register, purchases goods during a VAT period worth NOK 62,000, including VAT. During the same period, the company sells goods for NOK 150,000 excluding VAT. In the tax return for VAT, it must deduct input VAT from output VAT. See the table.
|Goods sold for NOK 150,000 excluding VAT||NOK 150,000 x 25/100 = NOK 37,500||Output VAT||NOK 37,500|
|Goods purchased for NOK 62,000 including VAT||NOK 62,000 x 25/125 = NOK 12,400||Input VAT||NOK 12,400|
|You must pay the following VAT amount||NOK 37,500 - NOK 12,400 = NOK 25,100||Difference||NOK 25,100|
If you use a suitable software program, this will all be calculated automatically and you will normally be able to print out a report identical to the one you have to submit to the tax office.