There are no separate exceptions for foreign branches in relation to SAF-T

Standard Audit File – Tax (SAF-T) is a standard format for the exchange of accounting material and has become a statutory format in Norway as of 1 January 2020. This means that all entities with bookkeeping obligations in Norway must be able to submit their accounting data to the Tax Administration in this format.

The standardized format should make it easier to send accounting information, perform internal checks, analyse data and change accounting system. Of course, SAF-T also means efficiency improvements in the control of data at the Tax Administration and shorter processing time through automation and reducing manual processes.

Companies with bookkeeping obligations must comply

The requirement applies to all companies in Norway with bookkeeping obligations, including of course Norwegian limited companies (AS) and foreign companies (non-Norwegian) with a taxable NUF / branch. The Norwegian taxable branch has, due to its taxpayer status, also fiscal reporting obligations and bookkeeping obligations. (regnskapsloven Act § 1-2 first indent no. 13 and bokføringsloven act § 2 first indent).

Most non-taxable NUF / branches have bookkeeping obligations because they are registered in the VAT Register and thus have an activity subject to VAT in Norway and report periodic VAT to the Tax Agency every 2 months or annually.

Few exceptions

Companies with less than NOK 5 million in turnover is exempt from the requirement, but only if the posted data is NOT already electronically available. Companies / branches with less than 600 transactions per year booked in a spreadsheet or word processing system are not subject to the requirement as this is perceived as a manual solution.

Thus, there are no separate exceptions for foreign branches in relation to SAF-T. However, the requirement applies only to the Norwegian entity with Norwegian bookkeeping obligations (the Norwegian activity) and not to the full financial accounting of the foreign parent company.

How?

Accounting data in SAF-T format is loaded via Altinn. Loading of files bigger than 200MB (2BG in zip files) is done in collaboration with the tax auditor.

Accounting information in SAF-T does not replace the tax return reporting but should only be submitted to the Tax Agency in connection with VAT / TAX control and on demand of a tax auditor.

It is your system provider who needs to customize the accounting systems so that your systems can deliver the new standard on request.

You are also very welcome to contact TIMEVAT for further information.