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Refunds of Value Added Tax to foreign businesses

Application form

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Foreign businesses can on application obtain refunds of value added tax paid on purchases of goods and services in Norway or on imports of goods into Norway.

With effect from 1 May 1999, the general refund scheme also applies to value added tax paid on purchases of goods, including fuel, and services for use by foreign lorries, and to value added tax paid on purchases of standing timber.

To apply for a refund of value added tax, a special form, RF-1032, must be completed and sent to:

Ostfold fylkesskattekonton

(the Ostfold county tax office)

Postboks 430

1502 Moss Norway

Tel: + 47 69 24 7000

Fax: +47 69 24 7151

Further information about the refund scheme is obtainable on rrequest from the Ostfold county tax office.

Conditions for refunds

The conditions for refunds of value added tax (VAT) are that:

the foreign business is not liable to register for VAT in Norway,

the value added tax relates to the applicant's business activities carried out abroad,

the business would have been liable to registration in accordance with the Norwegian Act relating to Value Added Tax if it had been carried out in Norway, and

the value added tac would in that case have been deductible.

Re 1.

The foreign business must not, during the period to which the application relates, have been registered or have been engaged in an activity which is subject to registration in Norway. Value added tax on goods imported for delivery to a buyer in Norway and on goods imported/purchased for sale in Norway is accordingly not refunded.

Re 2.

Foreign businesses can have value added tax refunded to the same extent as businesses in Norway are entitled to deduct value aded tax - i.e. the purchase must be for use in the activity which is liable to tax.

Foreign businesses engaged in both VAT liable and non-liable activities and which acquire goods or services for the use of the business as a whole, will only be entitled to refunds of proportional amounts of the value added tax, based on the assumed use of the goods/services.

Re 3.

A number of services are not covered by the Act relating to Valued Added Tax in Norway, among which are the letting of real property including the letting of hotel rooms, passenger transport, legal, banking and financial services, health services, and administrative and organisational consultancy services. Foreign businesses which are exclusively engaged in such activities will therefore not be entitled to refunds of value added tax.

Re 4.

In respect of certain goods and services purchased for the use of an enterprise, there is no entitlement to refunds of value added tax. This applies among other things to purchases of art and antiques, expenses relating to meals, entertainment and gifts, the conveyance of passengers, work on and management of real property intended to meet housing, leisure or other welfare needs, and board and in kind remuneration of the owner, management, employees and pensioned staff of the enterprise.

Sales of certain goods/services are exempt from tax charges (zero rate). In addition to the exemptions which apply to sales of goods and services to foreign countries and for use in offshore petroleum activities, and to sales of books, newspapers, etc,. tax exemptions also apply to advertising services and repairs carried out in this country under guarantees at foreign expense/for foreign clients.

The seller shall not charge tax on such sales and therefore the question of refunds does not arise. Any mistakenly charged value added tax will in the event not be refunded. The foreign business must in such a case seek to have the error made good through the seller.

Documents to be enclosed with applications:

1. Original invoices and import document as required in the general rules for authenticating the right to deduction. Invoices must be numbered and dated and state the name and address of the Norwegian seller, his or her organisation number followed by the letters MVA, the name and address of the applicant, a clear description of the nature of the goods or services, its quantity/extent, the place and day of delivery and the payment. The value added tax must be specified and stated in Norwegian Kroner (NOK).

2. A clear description of the commercial activity carried out abroad

3. A certificate from a public authroity confirming that the applicant is engaged in such a commercial activity.

4. A certified export document if the goods covered by the application have been exported.

5. An original authorisation if the refund is being applied for by an authorised representative.

The description of the commercial activity and the certificate from a public authoirty can be omitted if the same have been submitted previously in the same year.

The application with all enclosures must be in Norwegian, Swedish, Danish or English. The description of the commercial activity and the certificate from a public authoirty can be in another language but must if so be accompanied by a certified translation.

Declarations

the foreign business must in its application declare that the goods or services have been used in the enterprise. The purpose of the purchases must be stated. If a good comprised in the application has not been used, the applicant must either declare that the good was exported from the country as shown in an enclosed certified export declaration, or explain what the good is used for in Norway.

The applicant must in addition declare that the goods covered by the application have not been or will not be sold in Norway or supplied to a buyer in Norway, and that the value added tax paid is not covered by another refund scheme, for instance the repayment scheme for re-exports of goods administered by the Directorate of Customs & Excise.

Application periods

An application must relate to a period of at least three months and at most one calendar year. The period can be less than three months if it is the rest of a calendar year. The cliam for a refund must relate to goods and/or services supplied/imported during the application period.

Minimum amounts

refunds applied for must amount to at least NOK 2,000. If the application relates to a whole calendar year or the rest of a calendar year, amounts to a lower limit of NOK 200 can be refunded.

The applicant can choose whether the payment is to be made in Norwegian Kroner (NOK) or in other currencies. Thoe costs of payment outside Norway are payable by the applicant.

Deadline

Applications must be sent to Ostfold county tax office (Ostfold fylkesskattkontor) no later than 30 June of the year after the calendar year to which the application relates.

Processing time

The time neede to process applications at the county tax offices shall not normally exceed six months. Should the processing take less time, the amount refunded will nevertheless not be paid earlier than four months after receipt of the application by the county tax office.

Incorrect information

If the applicant has provided insufficient or incorrect informatin and on that basis has had too much tax refunded, repayment of the incorrect amount plus interest can be demanded. Incorrectly refunded amounts including interest can also be offset against subsequent applications for refunds.

Refunds paid can also be offset/claimed back in cases when the incorrect payment is due to an obvious error on the part of the tax authorities, for instance a calculation error, or when a considerable amount is involved.