Illustrative image of the Storting. The image has been edited with AI-based post-processing (Photo and editing: Kristian Dugstad)
Want modern and clear VAT rules
TONO has submitted consultation input to the Storting's Business Committee on VAT for copyright royalties. – The current VAT regulations are outdated, create uncertainty among authors and weaken the competitiveness of the Norwegian music scene, says TONO CEO, Karl Vestli. TONO invites you to a digital member meeting on VAT on October 28th at 15 pm.
/ 21/10/2025 / Willy Martinsen– We need a system that is adapted to the reality of today's music creators, says CEO Karl Vestli. – The rules as they are now work for sole proprietorships and those with other main occupations, but not for professional creators who run their business through limited companies. The result is great uncertainty and the risk of incorrect handling of VAT. We need predictable and clear VAT regulations that take into account both those who have limited companies and the many who are not self-employed.
TONO's consultation input to the Storting's Industry Committee here
The Value Added Tax Act currently exempts artists' own turnover from VAT, but says nothing about how it should be handled when the business is run as a company. This has led to some TONO members paying VAT for safety reasons, while others do not, because they interpret the law differently. Both groups are at risk of being faced with a subsequent assessment or claim from the Tax Administration if the interpretation changes. TONO itself has faced this uncertain situation by provide its members with a VAT guarantee.
– We are in a legal vacuum, says Vestli. – TONO has tried to follow the Tax Administration's guidelines, but the guidelines are unclear, the system is too complicated and produces unreasonable results. It is not sustainable either for individual members or for the music field as a whole.
In its submission, TONO urges the industry committee to ask the government to investigate the value-added tax in the cultural sector, as reported by the NOU. Music Country recommends. TONO suggests looking to Sweden, which has a low rate of six percent with full deduction, or to the Norwegian literary field, where books and newspapers have a zero rate.
– Both models show that it is possible to combine cultural policy with a fair tax system, says Vestli. – A solution for the music field must be equally predictable, and take into account the full breadth of TONO's membership.
TONO emphasizes that a new model must take into account both creators who want to be included in the VAT regime, and the many members who are not business owners.
– We want a solution that makes it possible for all actors to handle VAT correctly, while protecting those who should not be covered. We also point out in our consultation that voluntariness must be safeguarded through a spacious VAT compensation scheme. A fair and modern scheme will benefit the entire Norwegian music industry, says Vestli.
TONO urges the Storting to ask the government to investigate cultural VAT for the music sector, including models with low rates, zero rates and voluntary registration. The goal is a framework that promotes professionalization, exports and cultural policy.
“Music is a growing Norwegian export industry,” says Vestli. “If we are to continue to create value in Norway, the framework conditions must keep up with the development.”
TONO wants to have an open and good dialogue with its members about this matter. Therefore, we invite you to a digital member meeting on Tuesday, October 28th at 15 pm, where we will provide more information about the consultation and answer questions. You can participate in the digital meeting at this link.