The Norwegian Ministry of Finance has launched an evaluation on implementing mandatory e-invoicing and digital bookkeeping, with initial proposals expected by June 2025. This initiative aims to enhance efficiency, align with EU standards, and potentially save businesses over NOK 5 billion annually by adopting a framework similar to Denmark’s system.
Norway Launches Evaluation for Mandatory E-Invoicing and Digital Bookkeeping
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Norway
Author: Ivana Picajkić
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Fiscal subject related
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Content accuracy validation date:
30.01.2025
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08:08h
The Norwegian Ministry of Finance has initiated a detailed evaluation regarding the potential implementation of mandatory e-invoicing and digital bookkeeping, with Skatteetaten (the Norwegian Tax Administration) tasked with reviewing the options. This evaluation is expected to submit initial proposals by June 2025, and the Ministry is particularly interested in adopting elements from Denmark's established e-invoicing and bookkeeping regime. The overarching goal of this initiative is to achieve efficiency gains that could save local businesses over NOK 5 billion annually.
Norway has already implemented the Standard Audit File for Tax (SAF-T) for VAT returns but has hesitated to mandate e-invoicing due to a relatively low incidence of VAT fraud. The proposed review will explore several areas:
- Mandatory Digital Bookkeeping: Assessing the requirements for businesses to maintain digital records,
- Electronic Accounting Systems: Establishing standards for systems that must support e-invoicing,
- Mandatory E-Invoicing: Evaluating the feasibility of requiring e-invoicing for transactions between private businesses.
A likely approach could involve setting requirements for electronic accounting systems, making system suppliers responsible for ensuring compliance with mandatory e-invoicing functionalities, similar to Denmark's model.
Norway has made strides in e-invoicing since implementing B2G (Business-to-Government) e-invoicing in 2019. The country has adopted two primary standards:
- EHF (Elektronisk Handelsformat): A format based on the Universal Business Language (UBL),
- Peppol BIS 3.0: A standard used for cross-border transactions, facilitated through the Peppol eDelivery Network.
Currently, there are around 70 different Peppol BIS compliant solutions utilized within the private sector. Norway has also fully integrated the European standard on e-invoicing, EN16931.
This initiative follows a similar review undertaken by neighboring Sweden two years ago, although progress in Sweden has stalled since then. Additionally, the EU's upcoming VAT reforms will mandate B2B e-invoicing for intra-community supplies starting July 2030, which further emphasizes the need for Norway to align its practices with broader European standards.
The Ministry of Finance's evaluation into mandatory e-invoicing and digital bookkeeping represents a significant step towards modernizing Norway's tax administration processes. By potentially adopting a framework similar to Denmark's, Norway aims to enhance efficiency within its business environment while also preparing for future EU regulations. This initiative not only seeks to improve compliance and reduce administrative burdens but also positions Norway as a proactive participant in the evolving landscape of digital financial management.
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