Purchasing Services from Abroad and MVA - When Does a Business Apply the Reverse Charge?

Hi, I bought advertising and software from companies in Poland and the USA. The invoices have no MVA, what now? (the client has an AS company - accountant's note)

Foreign subscriptions, advertising, IT services and consulting appear among the costs of many Norwegian businesses. However, an invoice without Norwegian MVA requires checking whether the tax should be accounted for by the buyer under the reverse charge mechanism.

In this article, we explain which purchases are subject to this mechanism, how MVA registration status affects the settlement, and when the calculated tax becomes an actual cost for the business.

When Does the Purchase of a Foreign Service Create an Obligation to Account for MVA?

Reverse charge means that the Norwegian buyer calculates and reports Norwegian MVA, instead of paying it to the foreign service provider. The mechanism may apply to ENK and AS businesses, as well as partnerships, NUF entities and businesses carrying out MVA-exempt activities.

The obligation arises when all of the following conditions are met:

1. You purchase a service for consideration.
2. The supplier provides it from outside the Norwegian MVA area.
3. The buyer is a business or public institution connected to Norway.
4. Due to its nature, the service can be provided remotely and is not strictly linked to a specific physical location.
5. The same service would be subject to MVA if it were sold by a business in Norway.

The Norwegian MVA area does not include Svalbard or Jan Mayen. A service purchased from a supplier in these areas is therefore assessed in the same way as a purchase from another country. The supplier's country does not have to belong to the EU or EEA.

The most important factor is the nature of the service, not how the result is delivered. A consultant's report remains a service that can be provided remotely regardless of whether you receive it by email, post or during a meeting.

Which Services Are Most Often Subject to the Reverse Charge?

Services Usually Covered by the Mechanism

Most typical business services purchased from abroad meet the condition of being provided remotely.

In 2026, the standard MVA rate is 25%. For imports, you apply the rate applicable to an identical service sold in Norway. We discuss the other rates in the article Which MVA rates apply in Norway?

Services Requiring a Separate Assessment

A foreign invoice alone does not determine whether the reverse charge applies. Services which, by their nature, must be performed in a specific location are settled differently.

What matters is the actual content of the service, not the name stated on the invoice. For example, a subscription to a system providing financial data may be a taxable information service, even if it is used by a business conducting MVA-exempt financial activities.

How Does MVA Registration Status Affect the Settlement?

The reporting method and financial impact of the tax depend on whether the business is listed in the Merverdiavgiftsregisteret (MVA Register).

Business Registered in the MVA Register

If you are registered, you must report even a small purchase that meets the reverse charge conditions. In the return, you report:

• the taxable amount,
• the calculated output MVA,
• input MVA available for deduction, if the purchase gives that right.

When the service is used entirely for taxable sales, output and input tax will usually offset each other. The transaction is then financially neutral, but it must still be reported.

If the purchase is used for exempt, private or other activities that do not give a right to deduction, all or part of the calculated tax becomes a cost. We discuss deduction rules in more detail in the article Which purchases can I deduct MVA on?

Business Not Registered in the MVA Register

A non-registered business must add up the taxable amount of foreign purchases subject to reverse charge in each quarter. If the total exceeds NOK 2,000 excluding MVA, a special return must be filed and the tax must be paid.

The deadlines for purchases made in 2026 are as follows:

The NOK 2,000 threshold is unrelated to the regular MVA registration threshold, which in 2026 is NOK 50,000 in net sales during any 12-month period. A business may have sales below NOK 50,000 while still being required to pay MVA on foreign services. We explain registration itself in the article Registration in the MVA Register - when is it required and what does it provide?

How Do You Calculate and Bookkeep the Reverse Charge?

The taxable amount is the full consideration due to the supplier, excluding Norwegian MVA. The taxable amount also includes commissions, fees and other amounts that are part of the price of the service.

Convert an invoice in a foreign currency into NOK using the Tolletaten exchange rate applicable when the service is delivered. Keep a record of the exchange rate used.

The following examples show when reverse charge is neutral and when it results in tax payable:

For mixed activities, you must apply a representative allocation key, for example based on how the system is used, working time or the number of users. You can read more about combining both types of sales in the article MVA and MVA-exempt activities in one business - what are the rules?

Mark the purchase separately in your accounting software (e.g. Efirma.no) so that the return shows the taxable amount, output tax and the correct deduction. You must also retain documentation enabling the settlement to be reconstructed, in particular:

• the invoice or another purchase document,
• a description of the scope and type of service,
• the performance or delivery date,
• the contract, order or subscription terms,
• the exchange rate applied,
• the calculation of the taxable amount and MVA,
• the justification for the full or partial deduction.

FAQ - Frequently Asked Questions

Summary

• The purchase of a foreign service that can be provided remotely creates a reverse charge obligation if an identical service would be taxable in Norway.
• A business registered in the MVA Register accounts for such a purchase regardless of its value. For a non-registered business, the quarterly threshold is more than NOK 2,000.
• Most business services are subject to the 25% rate in 2026, while the scope of deduction depends on how the service is used.

If you need help accounting for MVA on services purchased from abroad, as well as help with the full bookkeeping of your business by an authorised accounting firm in Norway, call us: +47 21 38 38 21.

Article author: Marcin - marcin@efirma.no