Tax Commission wants 12% rate supplies merged into 15% rate; deemed supplier sharing platforms
Norway’s Tax Commission has recommended simplifying the country’s reduced VAT rate structure as part of a broad package of tax reforms aimed at creating a more predictable and efficient tax system.
Hike VAT to 15% on passenger transport, hotels and cinema
The commission proposes increasing the current 12% reduced VAT rate to 15%, effectively merging Norway’s two reduced rates into a single rate. The 12% rate currently applies to:
- passenger transport;
- hotel accommodation; and
- cinema tickets
The current 15% rate covers foodstuffs and water. The Norwegian standard VAT rate is 25%. See more in our Norwegian VAT guide.
If adopted, the reform would simplify VAT compliance by reducing the number of reduced rates businesses must administer, although it would increase VAT costs for sectors currently benefiting from the 12% rate.
Commission’s wider tax recommendations
The commission also recommends reviewing the introduction of VAT on non-life insurance and examining the VAT treatment of short-term accommodation rented through digital sharing platforms, signalling Norway will follow EU ViDA Platform Economy 2030 reforms with deemed supplier for intermediary platforms.
The proposals form part of a wider review commissioned by the Norwegian government in December 2025 to identify long-term tax reforms capable of attracting broad political support. The Ministry of Finance will now consider consultation responses before deciding whether to draft legislation.
