Norway’s Ministry of Finance announced tax updates effective July 2025, which includes reduced VAT for water services, limited CO2 tax exemptions for shipping, lower waste incineration tax for non-ETS enterprises, a military refuelling reimbursement scheme, and new agricultural accounting rules.
Norway’s Ministry of Finance (Finansdepartementet) announced the updated tax figures on 24 June 2025, which will take effect on 1 July 2025.
The key tax figures are as follows:
Reduced VAT rate for water from waterworks and sewage services
The VAT rate for water from waterworks and sewage services will be reduced from 25% to 15%, effective 1 July 2025.
Limitation of the CO2 tax exemption for international shipping
Starting 1 July 2025, the CO2 tax exemption for mineral oil used in international shipping will be restricted to fishing vessels, as outlined in the updated excise duty regulations.
Reduced waste incineration tax for non-ETS enterprises
Starting 1 August 2025, the tax rate for non-ETS enterprises on waste incineration will drop from NOK 908 to NOK 830 per tonne of CO2.
CO2 levy exemption for mineral oil used in foreign trade shipping
Starting 1 July 2025, the exemption will apply only to fishing vessels.
Reimbursement scheme for mineral oil bought at military refuelling stations
A reimbursement scheme for the CO2 tax on mineral oil bought at Armed Forces airport refuelling facilities will be introduced.
Introduction of the agricultural account
Sole proprietorships can recognise yearly profits in the income year or allocate them to an agricultural account. If the account balance is positive at year-end, at least 85% must be recognised as income. This applies to the 2025 income year.
