Electronic Invoicing and VAT & SAF-T Reporting in Norway

In recent years, Norway has made significant progress in the digitalization of its tax processes, introducing new obligations that impact both local and international businesses. Electronic invoicing (e-invoicing), the standard audit file for tax purposes (SAF-T), and real-time tax reporting have become key elements in ensuring transparency, preventing fraud, and simplifying tax compliance.

However, adapting to these requirements is not always straightforward. With constantly evolving regulations and specific technical demands, businesses need a clear understanding of the regulatory landscape to avoid risks and penalties.

In this article, we take a detailed look at Norway's current e-invoicing obligations, the scope of SAF-T, and the impact of digitalization on the relationship between businesses and the Norwegian Tax Administration.

B2B Sector (Business to Business)

Norway has officially approved legislation introducing mandatory B2B e-Invoicing and new digital bookkeeping requirements. The initiative is part of the country’s broader strategy to modernize administrative and tax processes, accelerate business digitalization, and align with European initiatives for the electronic exchange of business documents.

The legislation was passed by the Norwegian Parliament (Storting) and establishes a phased implementation timeline for entities subject to bookkeeping obligations.

Under the new rules, businesses must issue electronic invoices in the EHF (Elektronisk Handelsformat) format, which is based on the Peppol network, whenever the recipient is registered in ELMA (Elektronisk mottakeradresseregister), Norway’s national electronic recipient directory. ELMA allows businesses to identify organizations that are capable of receiving electronic documents through Peppol, as well as the specific document types they can exchange. Before sending an electronic invoice, the issuer must verify through the directory that the recipient is enabled to receive EHF-compliant documents.

In addition to mandatory e-Invoicing, the reform introduces digital bookkeeping requirements that will be phased in gradually through 2030.

At present, the mandate applies exclusively to B2B transactions. Transactions involving private consumers (B2C) and cash sales remain outside the scope of the legislation. However, the government has instructed the Norwegian Tax Administration to assess potential future expansions of the framework, including consumer invoicing, electronic sales receipts (e-receipts), and the regulation of accounting software providers.

Timeline

• From January 1, 2027: Mandatory issuance of electronic invoices for all entities subject to accounting obligations.
• From January 1, 2030: Mandatory implementation of fully digital bookkeeping systems, including the ability to receive and process e-Invoices automatically.

The proposal also introduces a potential exemption for small businesses with an annual turnover below NOK 50,000, provided they are not required to maintain accounting records or submit VAT returns.

Companies operating in or with Norway should begin preparing now:

• Assess current invoicing formats
• Ensure compatibility with EHF
• Evaluate the capabilities of their digital accounting systems

However, many businesses in Norway have already embraced e-Invoicing, driven by its operational advantages, such as minimizing paper usage, reducing fraud and human errors, and streamlining accounting and tax processes. Compatibility with European standards, such as Peppol BIS Billing 3.0, further facilitates interoperability with international business partners, strengthening the competitiveness of Norwegian companies in the global market.

Electronic Invoicing Model in Norway

Norway adopts the Peppol BIS 3.0 standard and the Peppol eDelivery network, especially for cross-border transactions. Both economic operators and contracting authorities in the country rely on Peppol Access Point (AP) service providers to ensure compliance with national regulations. This model allows all transactions to be managed through a single provider, eliminating the need to establish additional bilateral connections.

Economic operators can submit electronic invoices in two ways: through their own internal enterprise resource planning (ERP) or accounting systems, or by using authorized electronic invoicing solution providers. The Norwegian eProcurement infrastructure is built on the Peppol Business Interoperability Specifications (BIS) and the Peppol eDelivery Network, enabling standardized and secure communication between businesses and government entities.

In addition to the Peppol BIS document format, Norwegian public authorities also recognize the EHF (Elektronisk Handelsformat) format, which, like Peppol BIS, is based on the Universal Business Language (UBL) standard. This ensures smooth integration within public procurement systems and facilitates the automation of administrative processes, promoting efficiency and transparency in electronic transactions.

B2G Sector (Business to Government)

In the B2G sector, electronic invoicing has been a common practice for over a decade. Since 2012, the government only accepts electronic invoices that comply with the European national standard. These invoices must be validated by the electronic invoicing system before being sent to the recipient.

To ensure regulatory compliance, electronic documents must be issued in the national EHF (Elektronisk Handelsformat)/PEPPOL BIS Billing 3.0 format, which aligns with European requirements. This system not only facilitates automation and efficiency in payment processes within the public sector but also reduces errors and processing times, promoting transparency and traceability of financial transactions between businesses and government agencies.

Moreover, the mandatory use of electronic invoicing in the public sector has served as a model for the private sector, encouraging digitalization and the adoption of international standards in document and financial management.

e-Reporting (MVA-melding) in Norway

In Norway, there are mandatory electronic reporting requirements for Value Added Tax (VAT). The VAT declaration (known as MVA-melding in Norway) is a periodic report that businesses must submit to the Norwegian Tax Administration (Skatteetaten) to declare VAT for a specific period.

It provides a summary of the VAT-related transactions of a business, showing both the VAT charged (on sales) and the VAT paid (on purchases).

The frequency of submission depends on the size and business volume of the company. Generally, businesses are required to file the declaration every two months or quarterly.

SAF-T Submission in Norway

The SAF-T file allows for the electronic submission of accounting data by exporting the information in XML format. It is a structured file format used for tax audits and compliance purposes. This file must be available at all times and submitted to the tax authorities when requested.
It includes detailed information about all transactions: sales, purchases, accounting journals, VAT records, among others.

What information must the SAF-T file contain?

Here are some of the data that the SAF-T file must include:

• Company information (master data).
• Account specification (general ledger).
• Customer specification (accounts receivable).
• Supplier specification (accounts payable).
• The company’s chart of accounts, with mapping to a standardized chart of accounts.
• The company’s VAT codes, along with their correspondence to standardized VAT codes.

EDICOM Solution for Electronic VAT Reporting and SAF-T in Norway

The EDICOM platform simplifies communication processes with tax authorities in multinational contexts. It is a multi-standard and multi-protocol solution that adapts to the leading ERP systems on the market.

The EDICOM platform maps structured data files into the required format. It then connects to the national Altinn platform to submit VAT declarations.

Regarding SAF-T, EDICOM is capable of generating the file with the necessary information in the structured format. If required on demand, the SAF-T file can be downloaded from the EDICOM platform and sent to the government’s Altinn portal with the appropriate credentials.

The data from the accounting books, as well as the final SAF-T XML files of the accounting and tax documents, are archived in our electronic storage system, eIDAS, for the period stipulated by law or until the client requests otherwise.