| Update: | Compliance Alert – Reduced VAT rate for water and sewage services postponed until July 1 |
| Date: | 2025-05-06 |
On April 11, 2025, the Norwegian government announced a two-month postponement to the planned VAT rate reduction from 25% to 15% for water and sewage services.
The reduction is now expected to enter into force on July 1, 2025, instead of May 1, 2025.
- Initial effective date: May 1, 2025;
- New effective date: July 1, 2025;
- Scope: Water and sewage services;
- Current VAT rate: 25%;
- Reduced VAT rate: 15%.
The postponement follows feedback received during a public consultation, with Norwegian municipalities highlighting that a delay would help avoid unnecessary administrative burdens and costs.