There are more and more companies that use Norwegian influencers and bloggers for product marketing.
Many Norwegian influencers/bloggers receive goods from foreign companies in return for advertising the product or company in question. When the received product is conditional on a consideration, e.g. that an influencer receives an item in exchange for an advertising service / marketing of the product, output VAT must be settled on the market value, i.e. the price of the item or product on the Norwegian market.
This means that the company that sends products for marketing as a gift must calculate Norwegian output VAT on the product. Here, the provisions on taxation of withdrawals apply where assets linked to an income-generating activity or business are transferred to others.
Output VAT on products must be calculated. The products are not considered to be received as pure gifts but constitute a taxable (advertising) service. An exchange takes place where the company buys services from the blogger and the blogger receives products as remuneration for the performance.
In Norway, output tax must be calculated when goods and services are taken from a company that are used for gifts and distribution for advertising purposes, if the value is not below the limit of NOK 100 (incl. VAT)
VAT on the goods/gifts must be booked no later than 15 working days in the month after withdrawal has taken place.
If the transaction is equated with a barter trade, then the VAT basis for what is given in exchange is the value of what is taken in exchange. This means that if an item with a market value of NOK 15,000 is given for an advertising service with a value of NOK 5,000, the VAT base is NOK 15,000
Has an agreement been made...
In addition, the company must be aware that if an agreement has been concluded with an influencer / blogger that he or she must show or write something on his blog in return for payment or receiving products, then the matter may be assessed as an employee – employer relationship if the payment or the value of products between the two parties exceeds NOK 1,000 on a yearly basis.
Payment for or receipt of products in return for advertising a product or a company is taxable income for influencers and bloggers.
The rules regarding VAT and tax liability in relation to the use of influencers and bloggers is extensive, so if you need assistance, please contact TIMEVAT.