TMT 2025

NORWAY Law and Practice Contributed by: Kari Gimmingsrud, Stian Hultin Oddbjørnsen and Andreas Bernt, Haavind

1.3 Taxation of Digital Advertising Tax (CIT) Norway has not yet introduced a digital advertis - ing tax. Revenue derived from digital advertis - ing is thus currently not subject to taxation in Norway. Digital corporations have to conduct business in Norway (personnel or servers in Norway) in order to be subject to corporate income tax on profit allocated to the business activity in Norway. Nor - wegian tax law prescribes that a non-resident corporation is taxable in Norway on income from business activity that it has performed or partici - pated in, and that is carried on in or managed from Norway. VAT Digital advertising is liable for VAT in Norway. As this is a service that is not considered to be an ongoing subscription, the seller of the service is not allowed to invoice the VAT in advance. This means that the main rule on invoicing VAT applies; the sales document must be issued after the delivery. In order to ensure compliance with tax laws in Norway, companies should always consult tax and VAT advisers before they start doing busi - ness in Norway. 1.4 Consumer Protection Consumer Protection Regulation Norway has implemented EU consumer pro - tection regulation in the TMT sector, including through the Norwegian Act on Digital Content and Services. The Norwegian Marketing Con - trol Act and the Norwegian Cancellation Act also include extensive regulations on, for example, marketing activities, unfair contract terms, pric - ing obligations and the right of withdrawal.

when supplied in the VAT area. This is, however, unless the service is already included in a basis of calculation. If a service is to be used in the VAT area by businesses or public enterprises domiciled in the VAT area, VAT is payable, even if the service is supplied to a recipient domiciled outside the VAT area. This does not apply, however, if it can be documented that VAT was charged on the service outside the VAT area. If the supply of electronic communication servic - es is effected via a fixed terminal in the VAT area, VAT is payable, even if the recipient is not domi - ciled in the VAT area. If supply is effected via a fixed terminal outside the VAT area, VAT shall not be payable, even if the recipient is domiciled in the VAT area. Exports The supply of services that are entirely for use outside the VAT area is exempt from VAT. The supply of services capable of delivery from a remote location is exempt from VAT if the recipi - ent is domiciled outside the VAT area. This does not apply, however, if electronic communication services are supplied via a fixed terminal inside the VAT area. If such services are supplied via a fixed terminal outside the VAT area, the supply shall be exempt from VAT. The main challenge companies face in manag - ing the Norwegian VAT and tax rules is the duty for the buyer of services capable of delivery from a remote location to calculate and pay VAT themselves. This is an exemption to the normal procedure, whereby the seller (not the buyer) is liable to calculate and invoice the VAT.

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