Why am I being charged VAT?

This article explains why VAT is charged for reminder and debt collection services.

What is VAT?

Value Added Tax (VAT or moms) in Norway is a tax on the sale of goods and services that is added to the price. Like most services in Norway, debt collection services have been subject to VAT since 1 July 2001. This means that we, as a provider of debt collection services, are required to calculate VAT on our income.

VAT is calculated on the following income to Visma Amili AS:

• Reminder fees
• Collection fees
• Commission on principal/invoice amount
• Commission on interest
• Legal collection fees
• Filing claims in bankruptcy estates
   

What happens if my company is VAT-registered?

If the creditor is VAT-registered, Visma Amili will either offset the VAT in payments to the creditor or invoice the VAT. This can be recorded as input VAT on services and claimed as a deduction in the VAT return. In this way, it will not be a cost for you as a customer in connection with the collection.
 

💡 Tip: Why this is invoiced to you, and how you can get a deduction, you can read more about here.

What happens if my company is not VAT-registered?

If the creditor is not VAT-registered, VAT will not be charged on the collection fee, but this will be added to the collection fee that the debtor pays. In such cases, the creditor only has to bear the cost of VAT on reminder fees, commission on principal and interest, as well as any legal collection fees and filing in bankruptcy estates if such cases apply.

Where can I see the basis for the VAT?

Visma Amili sends out reminder and debt collection settlements (remittance vouchers) by email as the basis for calculating VAT. This also serves as documentation for the deduction.

My company invoices both with and without VAT – what should I do?

If you have mixed turnover and send invoices to your customers both with and without VAT, we encourage you to contact us at hjelp@amili.no to ensure correct setup and calculation of VAT.

See also: How to retrieve a copy of the remittance voucher in the Amili Portal - What is a writ of execution, and what happens in the process?