The value added tax (VAT) return in Norway will be replaced with a new and more detailed version of the form, effective from the first VAT reporting period of 2017. The new version of the VAT return applies to transactions conducted as of 1 January 2017. The VAT return for the period November-December 2016 (i.e., the VAT return having a due date of 10 February 2017) as well as any additional or corrective VAT returns for periods prior to 2017, will be reported on the “old” format.
The deadlines (due dates) for filing the VAT return and for payment of VAT are the same—only the VAT return is changing. VAT-registered entities therefore need to determine that their accounts, VAT codes, and accounting system conform to the new VAT return as of 1 January 2017.
The most important change on the new VAT return is that VAT on imports of goods is to be specified on the new VAT return and settled together with the domestic VAT. The import VAT on imports of goods is, under the existing system, listed on the customs declaration and settled separately at the time of importation. From 2017, the basis and the import VAT amount will not necessarily appear directly on the customs declaration. The importer / company therefore will need to keep additional documentation of the VAT basis and amount of import VAT. This change is expected to have a positive liquidity impact for VAT-registered entities.
Other changes on the new VAT return include the following:
The new VAT return is currently only available in Norwegian, but an English version will be prepared (date unknown). Below is an overview of the different sections and boxes in the new VAT return.
|Section one – Identification of the business|
|Account number (for any VAT refunds) / amendment to the account number|
|Section two – Information about the return, type of return and period|
|Main (standard) return|
|Type of return (yearly, bi-monthly, monthly, weekly, etc.)|
|Section three - VAT items and additional information|
|Item A: Total sales, withdrawals (self-supplies) and imports|
|Box 1: Total VAT exempt (out of scope) sales value|
|Box 2: Total VAT liable and zero-rated sales value, including value of imported goods and services|
|Item B – Domestic sales and withdrawals|
|Box 3: Domestic sales, etc., subject to 25% VAT (base and VAT amount)|
|Box 4: Domestic sales, etc., subject to 15% VAT (base and VAT amount)|
|Box 5: Domestic sales, etc., subject to 10% VAT (base and VAT amount)|
|Box 6: Zero-rated sales, etc.|
|Box 7: Domestic sales subject to reverse charge, e.g., supply of gold and emission allowances|
|Item C – Export|
|Box 8: Zero-rated exportation of goods and services|
|Item D – Import of goods|
|Box 9: Importation of goods subject to 25% VAT (base and VAT amount)|
|Box 10: Importation of goods subject to 15% VAT (base and VAT amount)|
|Box 11: Importation of zero-rated goods|
|Item E – Purchases subject to reverse charge|
|Box 12: Purchases of remote services from abroad subject to 25 % VAT (base and VAT amount)|
|Box 13: Domestic purchases of goods and services subject to reverse charge, e.g. gold and emission allowances (base and VAT amount)|
|Item F – Deductible VAT on domestic purchases|
|Box 14: Deductible VAT on purchases subject to 25% VAT|
|Box 15: Deductible VAT on purchases subject to 15% VAT|
|Box 16: Deductible VAT on purchases subject to 10% VAT|
|Item G – Deductible VAT on importation of goods and purchases of remote services from abroad|
|Box 17: Deductible VAT on imports of goods and services subject to 25% VAT|
|Box 18: Deductible VAT on imports of goods and services subject to 15% VAT|
|Box 19: Payable/refundable amount|
Today, typically the forwarding agent or the company's customs department calculates and reports the import VAT on the customs declaration. Beginning in 2017, the accounting department will have a key position regarding calculation and reporting of the import VAT.
Import VAT is calculated on basis of the customs value of the goods. Beginning 2017, import VAT will no longer be stated in the customs declaration, but the information on the customs declaration will be a starting point from which basis of the correct customs value can be calculated. Special rules may however apply in certain situations, such as for re-importation of goods. Any customs and excise duties will, as a general rule, still be stated in the customs declaration and settled directly with the customs authorities. All imported goods must still be reported, presented, and declared to the customs authorities in the same way as today.
The changes in the provisions regarding VAT will afford a liquidity advantage for companies that import goods. The import VAT will no longer need to be paid cash on importation or through a duty deferment account (customs credit), as it is paid (and deducted if entitled) through the VAT return. When it comes to imports made by non-VAT-registered entities, the import VAT will be treated in the same way as today and will be calculated and paid to the customs authorities at the time of importation.
For more information contact a KPMG tax professional in Norway:
Geir Arne Øien | + 47 406 39 328 | firstname.lastname@example.org
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