What is the Expense Reimbursement policy in Norway?

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.