Here is all you need to know about yearly VAT return
Some businesses can report VAT once a year. Here’s everything you need to know about the annual VAT reporting scheme!
Did you know that small businesses can report and pay Value Added VAT only once a year? For many businesses, this is a little-known scheme that can simplify operations and save time.
What is the annual VAT reporting scheme?
The annual VAT reporting scheme allows businesses with low turnover to submit a single VAT report for the entire year, rather than reporting every two months like most other businesses. This is especially beneficial for small businesses or companies with seasonal operations that prefer fewer administrative tasks.
Who is eligible for the scheme?
To qualify for the annual VAT reporting scheme, your business must meet the following criteria:
- Have a total turnover of less than 1 million NOK during the year.
- Not be registered in the VAT register as part of a VAT group.
- Have been registered in the VAT register for at least one year.
- Have submitted VAT returns on time and correctly for at least one year, in addition to meeting your payment obligations.
Benefits of the annual VAT reporting scheme:
- Simplified administration: You only need to submit one VAT return per year, reducing the burden of regular reporting.
- Better cash flow management: You can defer VAT payment to once a year, providing more flexibility.
How to apply?
Note: It is crucial to meet this deadline!
If you are approved for the annual VAT return scheme, you must submit and pay VAT for the entire year by March 10th of the following year.
To join the scheme, you can apply through the Norwegian Tax Administration’s website. If you are already registered in the VAT Register, you can easily apply for the annual VAT return scheme directly
Need help?
We are an authorized accounting firm with experience in assisting small and medium-sized businesses with everything from VAT reporting to tax obligations, both in Norway and the EU. If you’re unsure whether you qualify for the annual VAT reporting scheme or how to apply, we’d be happy to guide you through the process.