Cheaper wine and beer: A number of tax changes are coming to Norway in 2021, here’s an overview

Wine beer VinmonopoletPhoto: Fredrik Hagen / NTB
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It will be cheaper to buy cross-border goods such as snus, wine, beer, and sweets from the New Year. The air passenger tax will disappear, and Norwegians will get a separate pension account.

These are just some of the many law and rule changes that will take effect from January 1.

The Norwegian government will also introduce a new maximum rate for property tax. 

Pension account

A new scheme with a separate pension account will be introduced next year. 

That means, among other things, that it will be possible to collect pension earnings from previous employment and manage it together with pension capital from the current employer.

Young people who save in BSU (Young People’s Housing Savings) will experience a regulatory tightening as those who own housing will lose the tax deduction for money that is now included in the scheme. 

The maximum amount for savings is increased from NOK 25,000 to NOK 27,500.

From January 1, Norwegians can also receive more expensive gifts from their employers. 

Charging right and annual fee

Electric car owners who live in housing associations now get a statutory charging right. 

They can set up charging points in the housing association at their own expense. 

The charging box and power consumption are covered by the unit owner. 

The housing association will have to bear the costs of upgrading the power grid and infrastructure. There are 8,700 housing associations in Norway.

VAT on alternative treatment

Alternative treatment will no longer be VAT-free. The fee will generally be introduced from the New Year, but for osteopathy and naprapathy, it will be introduced from July 1, and for acupuncture from October 1. 

VAT will also be introduced on cosmetic treatment and cosmetic surgery that is not medically justified.

From New Year, it will also be possible to buy over-the-counter homeopathic medicines outside pharmacies.

The deductible ceilings for health services are now being changed and merged. The new deductible ceiling will be NOK 2,460.

Tax relief

Following the Progress Party’s (FRP) appeals, a number of tax breaks will be introduced on popular cross-border goods:

* The taxes on beer and wine will be reduced by 10%.

* The taxes on non-alcoholic beverages will be reduced by 50%.

* The tax on snus will be reduced by 25%.

* The tax on chocolate and confectionery will disappear.

The air passenger tax will be removed for the time being, as part of the corona measures.

Employees who have voluntarily resigned or who have been dismissed now have to wait longer to receive unemployment benefits. 

The waiting time will be increased from 12 to 18 weeks.

New inheritance law

It is becoming more important than ever for cohabitants to write a will after extensive changes to the Inheritance Act that will enter into force from the New Year.

Cohabitants without children have no inheritance rights, while cohabitants with joint children will have an inheritance right up to 4 G (National Insurance scheme basic amount). 

The living heirs will receive a larger share of the total pot than today. The lower limit will be increased from 1 million to 15 G, which corresponds to around NOK 1.5 million.

The National Insurance Act will also be amended so that minimum pensioners no longer receive a higher pension if they support a spouse or children.

Tighter tourist fishing

There will be slightly stricter rules for foreign tourist fishers in Norway. In order to take catch out of the country, the fish must be caught under the auspices of a registered tourist fishing company.

Until now, it has been possible to take 10 kilos of fish that have not been fished at registered tourist fishing companies. 

The quota that can be taken out of the country will be reduced from 20 to 18 kilos. 

Foreigners are also only allowed to bring fish out of the country twice a year.

Norwegian fish farmers must pay a production fee of 40 øre per kilo of fish sold. 

The tax will benefit coastal municipalities, and it is expected that the scheme will bring in half a billion kroner a year.

© NTB Scanpix / #Norway Today

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2 Comments on "Cheaper wine and beer: A number of tax changes are coming to Norway in 2021, here’s an overview"

  1. There is so much disappointment after reading the news on reduction of taxes on Beer, Chocolates, snus, and Wine. Rather government should do the same on edible items like vegetables and fruits, which are way more expensive here in Norway. At least daily consumption items should receive less tax and VAT.

  2. Alireza Sadeghi | 1. January 2021 at 15:38 | Reply

    So much mentions of “cross-border” on tax reductions. I’m wondering does that apply only to products imported by the buyer individually, or will all of us see the price reduction in our local Vinmonopolet stores?

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