Changes have been made to Norway’s VAT legislation providing that as of 1st July 2019, electronic books, magazines and journals magazines are subject to VAT at the zero rate.
Before this date, these supplies were subject to VAT at the 25% standard rate albeit that their printed versions were already enjoying the zero VAT rate. This amendment was part of the 2019 Norwegian Budget law and has come into effect now that the EFTA Surveillance Authority has granted its approval.
The zero rate also applies to electronic books and publications that contain sound, moving pictures and other functionality, but predominantly comprise of text and images. Streaming and downloading audio books will also be covered by the exemption.
This action has been taken by the Norwegian government with the view that aligning the VAT rate on printed and electronic versions of magazines and newspapers will enhance competitivity within the media industry. This change in law is consistent what is going on throughout the EU at the moment, as a result of the European Commission changing the VAT treatment of digital publications at the end of last year. Countries that have recently adopted similar measures include Belgium, Luxembourg and Malta.
Contact our VAT experts now and find out how this change could affect your business.