Norway cuts VAT on water and wastewater services from 25% to the 15% reduced rate

What changed in detail

At its meeting on 13 December 2024 the Storting adopted Lovvedtak 19 (2024–2025), amending the VAT Act (lov 19. juni 2009 nr. 58 om merverdiavgift). It was enacted as lov 20. desember 2024 nr. 88.

The Act adds a new § 5-12, “Vann fra vannverk og avløpstjenester”: VAT is charged at the reduced rate on sales and withdrawals of water from waterworks and of wastewater services. The reduced rate for these supplies is 15%, down from the 25% standard rate. § 5-1(2) is amended so that the reduced-rate provisions run to § 5-12. The Ministry of Finance may issue regulations on what counts as water from waterworks and wastewater services.

Part II of the Act leaves the commencement date to be set separately; the Act itself contains no date. By royal resolution of 17 June 2025 (nr. 1036) the Act entered into force on 1 July 2025. The Directorate of Taxes’ implementing regulation (FOR-2025-06-20-1148, new forskrift § 5-12-1), also in force from 1 July 2025, defines water from waterworks as drinking water from a water supply system, including emergency supply by tank, and wastewater services as including the emptying of septic tanks and sludge, together with the meters supplied with these services.

The Norwegian Tax Administration’s rate table shows water and wastewater services at 15% for 2025 and 2026, and does not list the category for 2024.

What it means

The 15% rate for water and wastewater is in force and still applies in November 2026, as Skatteetaten’s 2026 rate table shows. No later amendment to § 5-12 appears in the weekly feed.

The reduced rate started on 1 July 2025. For supplies in 2025, Skatteetaten allows water and wastewater charges to be apportioned so that half is taxed at the reduced rate, regardless of when the supply was actually made. Anyone reconciling 2025 water or wastewater invoices should check that the split follows this rule.