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VAT on supply of services to Norweigan Firm

Post-Brexit where the supply is happening both in the UK and in Norway

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Thanks in advance for any advice on this.

My firm provides consultancy to a Norweigan mining firm who are selling some equipment. This includes acting as an agent from the UK and also travelling to Norway regularly (when available to do so!) to participate in meetings with our customer and other clients.

We invoice in USD (not sure if this makes a difference, assume not) and traditionally (last 18 months before Brexit) my company would invoice as a zero rated supply.

Going forward do we need to appoint a Norweigan representative for VAT purposes, and do we now start charging VAT at UK rates for 'at home' consultancy and Norweigan rates when we provide the services over there?

Thanks 

Replies (4)

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VAT
By Jason Croke
26th Mar 2021 14:20

Norway wasn't in the EU, so Brexit shouldn't affect anything.

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By mosleyowl
26th Mar 2021 15:06

Thanks Jason - however I thought their involvement as an EEA country included an agreement with EU countries to trade with the same VAT rules - now that we are a '3rd party' country was curious as to rule changes

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Replying to mosleyowl:
VAT
By Jason Croke
26th Mar 2021 15:26

Place of supply of services rules, pre or post Brexit hasn't changed, so you supply consultancy services and the place of supply of consultancy services is where the customer is, so whether Norway, France or Canada, your services are outside the scope of UK VAT.

Norway, like Switzerland, is not part of the EU for VAT purposes even though they may align elsewhere with EU legislation , same goes for Channel Islands, not the EU for VAT purposes.

But re-reading your post does lead to another question. What exactly is this consultancy? Because if its land related, there may be a requirement to register for VAT in Norway. The place of supply of services has an exception for land related supplies and if, for example, you are performing geological tests on rocks from a mining site, that might be deemed a land related service.

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By mosleyowl
26th Mar 2021 18:49

Thanks again.

The consultancy is purely introducing the Norwegian firm to potential buyers of their equipment

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