Norway VAT
Important: The Information in this communication does not constitute tax, legal, or other professional advice. If you have questions, please contact your tax, legal, or other professional advisor.
What is value Added Tax (VAT)?
Value Added Tax (VAT) is a tax which consumers pay on almost all goods and services. In accordance with Norwegian VAT legislation, WP Engine is required to charge VAT on all electronic services provided to consumers residing in Norway and remit it to the Norwegian Tax Administration. Norway VAT is levied at the standard rate of 25%.
Why is WP Engine collecting Norway VAT?
As a provider of electronic services, WP Engine is obligated to charge VAT to Norwegian consumers (B2C) once certain sales thresholds are met. WP Engine has now exceeded these thresholds and will start charging VAT effective February 1, 2021.
Does Norway VAT apply to me?
WP Engine is required to charge VAT on all sales to consumers (B2C) with a Norway address. Norway VAT will not apply to business customers (B2B) with a Norwegian VAT Number (MVA) on file. Please note that businesses that do not provide a VAT Number will be charged VAT by default.
How do I obtain a Norwegian VAT Number?
Businesses must register with The Norwegian Tax Administration to obtain a Norwegian VAT Number (MVA). For information, please visit the Norwegian Tax Administration website at: https://www.skatteetaten.no/en/business-and-organisation/vat-and-duties/vat/register/
How do I enter my Norway VAT Registration Number into the User Portal?
To provide your Norwegian VAT Number (MVA), login via the User Portal and click the “Update Contact Info” dropdown caret. Once here, enter your VAT number in the “VAT/GST ID” field and click Update.
How does WP Engine calculate the VAT amount for each sale?
If WP Engine determines that Norway VAT should be collected, WP Engine will charge the Norway standard rate of 25%.
Will I be retroactively charged for VAT?
WP Engine will not retroactively charge customers VAT, but will charge VAT beginning February 1, 2021 on a prospective basis. VAT will be based on the invoice date.
Example 1
If an annual subscription renews and is invoiced on January 31, 2021, VAT will not be included on that invoice. However, the following annual renewal date of January 31, 2022 will include VAT.
Example 2
If an annual renewal date is May 1, 2021, the renewal invoice will include VAT for the May 1, 2021 – April 30, 2022 period and no additional VAT will be added for the retroactive period of May 1, 2020 – April 30, 2021.
