VAT on inland freight

Inland transport in Norway is VAT liable. Vessels loading in one Norwegian port for discharging in another Norwegian port is liable to charge 25 pct VAT on the freight. Hence ship owners should charge freight as per CP (normally in USD). VAT must be calculated in NOK using the rate of exchange as per BL date and issue a separate VAT invoice of 25 pct. In order to charge VAT owners must be VAT registered in Norway and have a Norwegian VAT rep. Falck is registered as VAT rep and undertakes VAT reporting for several foreign clients. Remember that VAT is a “zero game” between businesses hence there are no gain or loss. Owners receive the VAT which are paid bi-monthly to the tax office and charterers pay VAT which is reclaimable bi-monthly from the tax office. Contact Thomas Falck – mail: thomas.falck