All businesses with a turnover of less than NOK 150,000 will not have to register in the VAT register.
In the budget the government proposes to increase the overall amount limit for registration in the VAT register of from 50,000 to 150,000 kroner from 1 January 2015 .
Lower cost
The same amount limit for charitable and non-profit organizations increased simultaneously from 140,000 to 150,000 dollars.
The political rationale for the proposal is simplification for businesses.
The Ministry of Finance estimates that the administrative costs for businesses can be reduced by approximately 90 million annually with the new scheme.
“Distortion of competition”
– The aim of contributing to the simplification is good, but it may open more black work, says lawyer Per-Ole Hegdahl of the Norwegian Association of Authorised Accountants (NARF) to Aftenposten.
The system can also distort competition for companies and businesses with a turnover of NOK 150,000. They must still be registered in the VAT register and reply to incoming and outgoing moms.
– We have several years working for the tax obligation from the first dollar turnover, thus reducing the limit from 50,000 to zero dollars. Now the government proposes, however, to increase it instead, says Hegdahl.
Migrant workers
He thinks this may attract more migrant workers to Norway. It can also open several small businesses in Norway exploit the system.
– Consider all foreign businesses that can come to Norway to sell services for 150,000 kroner without paying VAT. The same applies to Norwegian companies that adapts by starting Cleaning Company 1 AS, Washing Company 2 AS, Washing Company 3 AS etc., Says Hegdahl.
Hegdahl emphasize that although business release moms because of NOK 150,000 threshold, revenues are still taxable.
Income
The Ministry has also asked the Tax Directorate is considering raising the limit for exemption from providing an income to the IRS.
Today, this exemption limit set of operating income under 50,000 per year. There are still many exceptions to this exemption scheme, it appears from the state budget.
No comments:
Post a Comment