E-Invoicing in Norway
Achieving Compliance in Norway: An Overview with mySupply
Norway can be considered one of the most advanced countries when it comes to the exchange of electronic business documents. They have often been pioneers in digitizing new areas, with the Norwegian government driving various projects in close collaboration with the Norwegian business community. Particularly, the private sector has embraced digitization, resulting in a significantly higher volume of electronic business document exchange between companies (B2B) in Norway compared to exchanges between businesses and the public sector, despite B2G e-invoicing legislation.
Norway has strongly supported the Peppol network, dedicating itself to Peppol standards and actively participating in Peppol initiatives. In electronic exchange, the use of Peppol standards, both in terms of the formats exchanged and the network used for exchanges, has become deeply rooted.
Norway has also been well-represented in the leadership of OpenPeppol, with the current Secretary-General of OpenPeppol AISBL being Norwegian and working daily at DFØ, the Norwegian Agency for Public Management and eGovernment.
Legislation
Norway’s e-invoicing legislation is based on EU Directive 2014/55/EU. In Norway, there is mandatory B2G legislation. This means that Norwegian companies serving as suppliers to the Norwegian public sector are obligated to send electronic invoices and credit notes. However, there is no specific legislation for e-invoicing in the B2B sector in Norway.
What Can Be Exchanged?
Electronic Invoices and Credit Notes: For these, the Peppol standard format Peppol BIS Billing 3.0 must be used. When Norwegian suppliers send to Norwegian customers, additional rules are applied on top of the Peppol standard, which the Norwegian supplier must follow. When non-Norwegian suppliers send to Norwegian customers, they must comply with the Peppol standard.
Other Electronic Business Documents: EHF (Electronic Trade Format) Order, EHF OrderChange, EHF Order Confirmation, EHF Catalogs and Receipt Responses, and EHF Despatch Advices.
ISO 20022 Payment Files: Norway currently operates a domain within Peppol called Payment. An extended version of the Peppol network (Enhanced Peppol) is used to exchange payment files between companies and banks in Norway. These payment files cover transactions conforming to the international ISO standard known as ISO 20022. The Payment domain is currently only in use in Norway but has potential in other countries since ISO 20022 is an international standard.
How Are Electronic Business Documents Exchanged?
In Norway, electronic business documents are exchanged through the Peppol Network. This exchange is facilitated by certified Peppol Service Providers who handle electronic business document exchanges on behalf of their customers. Customers and suppliers needing to send or receive documents to and from Norway must connect to the Peppol Network through a certified Peppol Service Provider, often referred to as a Peppol Access Point.
Tax Reporting / Tax Clearance
Companies with a turnover exceeding 5 million NOK are required to report to the Norwegian tax authorities using the SAF-T format. The SAF-T format contains data about a company’s accounting and is often generated directly from the financial system.
While there is no established CTC (Continuous Transaction Controls) clearance model in Norway, indications suggest that Norway may align with the Peppol network for Tax Clearance in the so-called Peppol CTC model.
Archiving Requirement
There is a 5-year archiving requirement for electronic invoices and credit notes in Norway.
Relevant Initiatives in Norway
There is no doubt that digitization is advancing rapidly in Norway, particularly in the realm of electronic business document exchange.
One notable initiative in Norway is the Peppol Logistics project. This project aims to digitize complex logistics processes by defining a set of standard Peppol BIS formats and using the Peppol network as the exchange platform. Various stakeholders in Norway are interested in establishing a common standard for exchanging logistics documents.
CTC or Tax clearance is a topic across Europe, although Norway is not officially part of the EU but follows its trends. One significant financial topic in the EU is VIDA (VAT In The Digital Age). European legislation is being developed to mandate the use of e-invoicing and obligatory VAT clearance with national tax authorities to combat tax fraud. Therefore, Norway is moving towards a future where electronic invoicing and real-time VAT reconciliation are expected, although the exact model for this has not yet been determined.
