In a notable development, the Norway Tax Agency has recently published a crucial board ruling concerning VAT registration and taxation regulations pertaining to the practice of digital currency mining. The ruling arises from a specific case where a taxpayer engaged in digital currency mining operations in Norway using three servers and participating in mining pools.
Significantly, the Tax Authority has determined that the turnover resulting from the extraction of digital currency is not subject to value-added tax (VAT) and is instead eligible for the exception granted to financial services. Consequently, the Tax Authority has also deregistered the taxpayer from the VAT register due to the taxpayer’s annual turnover falling below the 50,000 Norwegian kroner threshold (equivalent to approximately US$4,658).
This decision by the Norway Tax Agency carries important implications for individuals and entities involved in digital currency mining activities within the country. It underscores the specific VAT treatment applicable to revenue derived from mining endeavors and underscores the necessity of adhering to VAT registration requirements based on turnover thresholds. Individuals and entities engaged in similar operations are strongly advised to review their VAT obligations and seek professional guidance to ensure compliance with the latest regulatory framework.
Effective date: 29 June, 2023