Norway Slashes Reduced VAT Rate to 6% in Response to COVID-19
n a bid to ease economic pressure from the COVID-19 pandemic, the Norwegian government introduced a temporary reduction to its reduced VAT rate, cutting it nearly in half, from 12% down to 6%.
What changed and when?
This relief measure came into effect on 1 April 2020 and remained applicable through 30 June 2021. It was explicitly framed as a short-term response to the financial disruption caused by the coronavirus outbreak, not a permanent policy shift.
Who does it affect?
The lower 6% rate applied specifically to sectors hit hardest by pandemic-related restrictions:
- Passenger transport
- Accommodation services
- Cinema tickets
- Sports events
- Activity centres
Why it matters for businesses
For businesses operating in these sectors during that period, the reduced rate directly impacted VAT calculations on invoices issued to customers. Finance and tax teams needed to ensure their invoicing systems reflected the correct temporary rate to stay compliant, and revert back to 12% after the expiry date.
