This article outlines the rules for business expense reimbursement in Norway, including tax‑free mileage rates, documentation requirements, per diem limits, and what qualifies as a taxable benefit.
1. Mileage Reimbursement
Norway has government‑defined tax‑free mileage limits for employees using their private vehicle for business travel.
Tax‑Free Mileage Rates
NOK 4.76 per km – private vehicle used for business
NOK 0.76 per km – per passenger
NOK 0.70 per km – electric vehicles (same tax‑free ceiling)
If the employer reimburses above these tax‑free limits, the excess is taxable income.
Employees must provide:
A mileage log (date, distance, purpose)
Any supporting documentation (travel order or meeting agenda if required internally)
2. Parking, Tolls, and Other Road Costs
Reimbursable with receipts
If receipts are unavailable (e.g., automatic toll systems), official system records or toll statements are sufficient.
These reimbursements are tax-free when clearly linked to business travel.
3. General Conditions for Travel Reimbursement
There are no statutory monetary caps for travel costs. However, to be tax-free:
Travel must be business-related
Expenses must be reasonable and aligned with the work purpose
Overnight stays must be justified by business needs
Employers must follow the Government’s travel allowance framework regarding tax-free limits
All business travel must be documented with:
Purpose of trip
Destination
Dates of travel
4. Transportation Expense Rules
Air / Train / Bus / Ferry
Allowed when cost-effective
Receipts required for tax-free reimbursement
Taxi
Allowed when necessary (late arrival, remote destination, schedule constraints)
Must have a receipt
Business purpose must be indicated
Rental Cars
Allowed when justified
Requires:
Rental agreement
Rental invoice
Fuel receipts
Trams / Local Transit
Tax-free with:
Receipts, or
Travel card statements
5. Documentation Requirements
To qualify as tax-free, documentation must include:
Supplier name
Date of purchase
Amount paid
VAT amount / VAT breakdown
Description of goods or services
The buyer’s name is not mandatory on most Norwegian receipts.
Expenses should ideally be addressed to: Horizons Global Technology Norway
6. Tax-Free Categories of Reimbursable Expenses
The following are typically reimbursable tax-free when properly documented:
Airfare, train, taxi, bus, ferry
Mileage within the tax-free rate limits
Parking and tolls
Fuel for rental cars
Accommodation (hotel invoice required)
Meals within per-diem limits
Work-related supplies or equipment
Local transport (with receipts)
7. Per Diem Allowances
Per diems exceeding the government’s tax-free thresholds become taxable income.
Domestic Tax-Free Per Diem Limits
NOK 978 – trips of 12+ hours including overnight stay
NOK 664 – trips of 12+ hours (no overnight stay)
NOK 537 – trips of 6–12 hours
NOK 0 – under 6 hours (no per diem permitted)
International Travel
Rates vary by country
Published annually by the Norwegian government
Reimbursement is tax-free only within official limits and accompanied by documentation of the trip
8. Entertainment, Gifts, and Events
Client Entertainment
If the expense resembles a personal benefit, it may be taxable to the employee
Requires clear business justification and receipts
Gifts
Employee gifts: Up to NOK 5,000 per year tax-free (must meet specific criteria)
Client gifts must be:
Reasonable
Business-related
Supported by receipts
Team Events
Reimbursable if business-related
Must have clear documentation of participants and purpose
9. Non-Reimbursable or Taxable Personal Benefits
These are typically taxable benefits unless legally required:
Gym memberships
Yoga, fitness, swimming
Therapy or wellness services
Personal expenses unrelated to employment
10. VAT in Norway
Norway applies 25% VAT on most goods and services
VAT may be reclaimable if:
The expense is business-related
The invoice shows VAT
The entity (Horizons Global Technology Norway) is listed as the purchaser
The organization is VAT-registered
Incomplete invoices may limit VAT recovery.