Up until now we have been operating as an intermediary in accordance with a written assessment from The Norwegian Tax Administration, East Office. However, our business is now deemed to fall under the sales on commission definition, for tax purposes. This means that, with regard to the tax authorities, Skistar Norge AS avd. Trysil shall as of 1 May 2010 take on the role of commission agent in our holiday property rental transactions.
What does this mean for me as a holiday property owner?
The fact that we will go from making intermediary sales to making sales as a commission agent will not entail any changes to the fees payable to the owner for those whose properties are already registered as rental businesses.
Those who have not registered their holiday properties as rental businesses will see a change. You will no longer be required to pay 25% VAT on our commission; instead, the rental fee will be subject to VAT at 8%, meaning that the calculation basis for the owner’s share will be 8% lower.
See examples:
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Non-registered property |
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Intermediary |
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Commission agent |
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Property rental for guest |
NOK 10,800 |
Property rental for guest |
NOK 10,800 |
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Property rental for guest excl. VAT |
NOK 10,000 |
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Our commission (30%) |
NOK 3,240 |
Our share (30%) |
NOK 3,000 |
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VAT on our commission |
NOK 810 |
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NOK 4,050 |
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Payable to the owner |
NOK 6,750 |
Payable to the owner |
NOK 7,000 |
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The owner's share of the property rental paid by the guest |
62.5% |
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64.8% |
Click here to access the form for registering in the VAT register at the Brønnøysund Register Centre
Click here for further information about the introduction of VAT on the leasing out of holiday properties
If you have any questions relating to VAT, please contact The Norwegian Tax Administration, East Office by telephone on 800 80 000 (+47 22 07 70 00 from outside Norway), or your local tax office. The Norwegian Tax Administration will determine whether you fulfil the requirements for registration.
In order to ensure your treatment as a VAT-registered owner, Skistar Trysil requires written confirmation that the holiday property is registered in the VAT register.
