Background
When your business turnover exceeds NOK 50,000 within a 12-month period, you are required to notify the Norwegian Tax Administration (Skatteetaten) and register in the VAT Register. Registration is done via altinn.no – this is an external step outside of Catacloud.
Once registered, you must activate VAT in Catacloud and ensure your products are linked to the correct VAT code and account. Without this, you will not be able to select VAT codes on invoice lines.
Step 1: Activate VAT in Catacloud
Go to Administration in the main menu. Select Accounting in the left menu under Module settings.
Under the General tab, find the Tax settings section:
Turn on the Vat toggle. It will show "The organization is VAT registered" when active.
Select the VAT Period from the dropdown menu. Most newly VAT-registered businesses report every two months – select 2 months in that case. Check the decision letter from Skatteetaten if you are unsure about your reporting period.
Remember to click Update settings.
Step 2: Set up products with the correct VAT code and account
The VAT code is set per product. Products linked to an account without VAT handling (e.g. 3200) will not allow invoicing with VAT. You must create or edit products so they use the correct VAT code and a taxable account.
Go to Products in the main menu. Click + New product in the top left, or click the pencil icon (Edit product) to the right of an existing product to edit it.
Fill in the following fields:
Product – product number (suggested automatically) and Product name, the name of the service or item.
Type – Consumable or Service.
Unitcode – e.g. hour or item.
VAT code – select the correct rate from the dropdown. VAT codes are shown with their Norwegian names. For most services and goods at the standard rate: 3: (25%) Utgående avgift, høy sats.
Account – select a taxable account, e.g. 3000 Salgsinntekt handelsvarer, avgiftspliktig or 3020 Salgsinntekt tjenester, avgiftspliktig, høy sats. The VAT code is filled in automatically from the account. Avoid accounts without VAT handling such as 3200.
Net price – price excluding VAT.
Click Create product (or Save changes when editing).
See How do I create a product in Catacloud? for all the fields and more ways to create products.
Frequently asked questions
I cannot select a VAT code on the invoice line
The VAT code is controlled by the product, not the invoice directly. Check that the product is linked to the correct VAT code and account (see step 2). Also check that the Vat toggle is turned on in Administration → Accounting (see step 1).
Which VAT period should I choose?
Skatteetaten specifies the period in your registration decision. New businesses are generally assigned a 2-month period. Businesses with turnover below NOK 1 million may apply for an annual return.
Should I change accounts on old invoices?
No – only create new products going forward. Historical entries should not be changed without consulting your accountant.
When should you contact us?
Contact support and provide the following:
Company name
What you are trying to do and what is happening
Screenshot of any error message