The Norwegian Tax Agency has decided that TONO's activities are subject to VAT. As of January 1, TONO will invoice customers with VAT, while members with activities subject to VAT will be paid VAT on their TONO settlements.
/ 18/11/2021 / Willy MartinsenThe Norwegian Tax Directorate has decided that TONO's activities are to be understood as turnover subject to VAT under the VAT Act. On 16 November, TONO registered in the VAT register in Brønnøysund, and will, from 1 January, charge VAT of 25 percent on all invoices to TONO's customers. TONO has not previously collected VAT.
VAT will be deductible/compensable for most businesses under current regulations. Individuals must assess for themselves whether VAT is deductible and compensable for their business.
The vast majority of TONO's members are not affected by the change, but for those individual authors and music publishers who are registered with an AS* in the VAT register in Brønnøysund – and who receive their TONO income paid to this – the change means that from January 1, they will be paid VAT with their TONO settlements, as long as they inform TONO of this.
For those TONO members who have previously been unsure whether TONO revenues should be part of the VAT accounts and payments to the tax authorities, the news means new, clear guidelines and more predictability.
For those who may have previously paid VAT to the tax authorities on their TONO income, the new scheme entails a clear financial advantage in that from 2022 TONO will also pay the VAT they are required to pay to the tax authorities.
In order for TONO to be able to pay VAT to the VAT-liable enterprises that members have established, members must take responsibility for informing TONO of this. There will be an opportunity to do this from January 2022.
So it is not It is not possible to register this information with TONO in 2021 because technical solutions for this are still being developed. TONO will send out information via email and/or newsletter in January on how to register.
TONO cannot provide tax advice to its members. If you have questions about VAT, we therefore encourage you to contact an auditor, an accountant or the Norwegian Tax Administration. You can find contact information at www.skatteetaten.no/kontaktIf you have any questions for TONO's member service regarding direct TONO-related questions, please send an email to medlem@tono.no or by calling 22 05 72 00.
*NOTE – Sole proprietorships were incorrectly included here until 19/11 at 14:55 PM.
The text was updated on 19.11.21. The word company was changed to enterprise.