Which purchases can I deduct MVA from?

I run a renovation business and after getting a bigger payment from a client i bought tools, a phone and work clothes. But only afterwards i thought: can i deduct MVA from all of it? I also have a question, what about fuel and lunch when travelling to a client, can i deduct MVA here right?

Business purchases can include both minor materials and expensive machinery. However, each expense must be assessed based on its connection to MVA-liable sales, how it is used, and the documentation available.

In this article, we explain which purchases you can deduct MVA from in Norway in 2026, which expenses are excluded by law, and what to do when a purchase is used for both business and private purposes.

When a business is entitled to deduct MVA

A business registered in the Merverdiavgiftsregisteret (MVA Register) deducts MVA on purchases intended for MVA-liable business activities. The purchase must have a natural and sufficiently close connection to the sales carried out.

The right to deduct follows the rules set out in the merverdiavgiftsloven (Norwegian VAT Act). In practice, all of the following conditions must be met:

• the business is registered in the MVA Register;
• the purchase is used for MVA-liable sales, including sales subject to a 0% rate;
• the expense does not fall within a category excluded from deduction by law;
• the business has a valid invoice or other required document;
• the deducted amount has been correctly charged as Norwegian MVA;
• where there is mixed use, only the business portion is deducted.

The rules are generally the same for sole proprietorships and limited companies. In a limited company, the invoice must be issued to the company, not privately to a shareholder, board member, or employee.

The registration obligation arises once you exceed NOK 50,000 in MVA-liable turnover excluding MVA during any 12-month period. This is not an annual limit. Sales subject to a 0% rate count towards the threshold, while sales excluded from the MVA system are not included. We discuss the details in our article on registering a business in the MVA Register.

A business that provides only services excluded from MVA, such as most healthcare, educational, or financial services, generally cannot deduct MVA on related purchases.

Purchases you can most often deduct MVA from

The right to deduct is assessed based on the actual purpose of the expense. Simply recording a purchase in the accounts or treating it as an expense for income tax purposes is not enough.

When renting commercial premises, MVA is usually charged on rent when the landlord is covered by voluntary registration for rental activities. If the invoice does not include MVA, the tenant has no tax to deduct.

You deduct the amount actually and correctly charged on the purchase. A reduced rate on a ticket or accommodation does not reduce the right to deduct if the entire expense is used for MVA-liable activities. We present the applicable tax rates in the article What MVA rates apply in Norway?

Purchases excluded from deduction

Norwegian regulations exclude certain categories of expenses, even where the business incurs them in connection with its activities. An expense may qualify as a tax-deductible cost while still not giving the right to deduct MVA.

In 2026, the insignificant value threshold is NOK 100 gross market value per individual item. Promotional goods exceeding this limit generally do not give the right to deduct MVA. The restriction does not cover typical informational materials such as brochures, catalogues, and price lists distributed free of charge.

Special restrictions apply to passenger cars, motorcycles, and class 1 varebil. As a general rule, you cannot deduct MVA on their purchase, leasing, fuel, repairs, maintenance, or parking. We discuss the exceptions and the rules for class 2 varebil in the article Can I deduct a car in a Norwegian business?

Partial deduction and special situations

If a purchase is used both for MVA-liable activities and private purposes or activities excluded from MVA, you may deduct only the relevant portion of the tax. The allocation should reflect actual use and be possible to explain in the event of an inspection.

Examples of allocation methods include:

• time spent using the equipment;
• floor area of the premises;
• number of transactions;
• turnover of the individual parts of the business;
• mileage or documentation of vehicle use.

Example: a phone cost NOK 6,250 gross, including NOK 1,250 MVA, and is used 70% for business. The business may deduct NOK 875 MVA if the 70% proportion reflects actual use and is documented.

For common costs relating to activities that are both MVA-liable and excluded from MVA, the 5% rules also apply:

The 5% rules apply to common costs. A purchase directly attributable to one part of the business is settled according to the purpose of that specific part. You can find more examples in the article MVA-liable and MVA-exempt activities in one business - what are the rules?

Purchases made before registration

After registration, you can deduct MVA on certain purchases made up to 3 years before registration, provided they have a direct connection to later MVA-liable activities. This also applies to certain business start-up expenses.

The deduction does not cover goods and services sold before registration without MVA, or purchases previously used solely for private or hobby purposes. The claim is included in the main mva-melding (MVA return) for the registration period, and the deadline for submitting it is generally 3 years from registration.

Purchases from abroad

Foreign VAT, such as Polish or Swedish VAT, is not Norwegian MVA and cannot be deducted in the Norwegian MVA return. When importing goods, an MVA-registered business calculates import MVA itself. If the purchase is used for activities giving a full right to deduct, the tax can usually be reported simultaneously as output and input tax.

For purchases of remote services from abroad, such as online advertising, software, hosting, or consultancy, the reverse charge applies. This means that the buyer calculates Norwegian MVA itself and, where there is a full right to deduct, reports the same amount as input tax.

Documents needed for deduction

A valid invoice should state, among other things, the seller and buyer, the document number and date, the type of purchase, the price, the taxable amount, and the MVA amount in NOK. The organisation number of the registered seller must end with MVA.

For a retail purchase exceeding NOK 1,000 gross, the document should generally identify the business as the buyer. An exception may apply to payment by a card belonging to the business, but the purpose of the purchase must still be documented.

An invoice issued privately to the owner, shareholder, or employee generally does not give the business the right to deduct MVA. If the document contains an error, ask the seller for a correction or a new invoice before reporting the MVA.

For a payment totalling NOK 10,000 gross or more, you must pay through a bank or an authorised payment service provider. Several instalments for the same delivery or agreement are treated together. For recurring services such as telephone, licences, accounting, or rent, payments eligible for deduction in the relevant year are taken into account.

FAQ - frequently asked questions

Summary

• You deduct MVA on purchases that have a natural and documented connection to MVA-liable activities.
• Food services, business entertainment, private expenses, most passenger car costs, and other purchases excluded by law do not give the right to deduct MVA.
• In cases of mixed use, you must determine and document a proportion that reflects actual business use.
• The invoice must be issued to the correct business, and a payment of at least NOK 10,000 gross must be made through a bank or authorised payment provider.

If you need help deducting MVA on business purchases, call us: +47 21 38 38 21. We help Polish people in Norway settle business MVA correctly.

Article author: Marcin - marcin@efirma.no