Are you a non-profit organization, or are you engaged in non-profit work and have substantial VAT expenses? If so, you could save money by using this scheme.
You can be compensated for parts of the Value Added Tax (VAT) on goods and services.
The purpose of the scheme is to enable non-profit organizations to apply for compensation for VAT on goods and services. That means that if an art club, for example, buys a new coffee maker, the club can be compensated for the VAT on it and on other goods and services, if they otherwise meet the criteria.
Who can apply?
It is a requirement that you are a non-profit organization in which voluntary work accounts for an important part of the organization’s activities. In addition, the organization must
- be registered in the Register of Non-Profit Organizations by the deadline for applications, 1. September.
- be able to document that voluntary work is an important part of the organization’s activities (you must enclose a self-declaration on voluntary work with the application. Read about what is defined as non-profit activity in Section 3 of the Act relating to a register of non-profit activities.)
- meet the other criteria.
Local and regional levels
Is your organization a branch at the local level or regional level? If the organization you apply for is a member (branch) of a national organization (e.g. the Norwegian Olympic and Paralympic Committee and Confederation of Sports, the Norwegian Red Cross, the Norwegian Women’s Public Health Association, etc. ), the central organization must submit the application on behalf of all of its branches. Contact your central organization for information about reporting and internal deadlines.
The Register of Non-Profit Organizations
Central organizations and individual applicants must be registered in the Register of Non-Profit Organizations by 1. September the year they apply. Branches at the regional and local levels do not have to be registered. This means that all regional and local branches can be included in the central organization’s application regardless of whether they are registered in the Register of Non-Profit Organizations. Please note that branches at all levels must be independent legal entities, cf. Section 3 of the Regulations.
To be able to apply, your organization must have operating expenses or VAT expenses that exceed a lower limit:
- Pursuant to a simplified model, the organization must have total operating expenses of at least NOK 100 000 after delimitations and deductions.
- Pursuant to the documented model, the organization must have actual VAT expenses that qualify for compensation of at least NOK 7000.
The lower limits do not apply, however, if you are a lower-level branch of a central organization. In such case, the total sum for the whole organization will apply.
All applicants must have approved and signed annual accounts, an annual report and an auditor’s report for the previous year. Which other enclosures are mandatory depends on the model chosen and the size of the organization.