How are different expense categories treated in Norway for reimbursement?

In Norway, expense categories are treated in various ways for reimbursement, and many have specific requirements regarding taxability.

For all expense types, proper documentation is mandatory, including VAT-compliant invoices or itemized receipts where required. Invoices must meet Norwegian VAT requirements (including seller details, VAT registration where applicable, description of goods/services, and amounts). Expenses must be incurred wholly, exclusively, and necessarily for business purposes, approved by the supervisor, and submitted within a reasonable timeframe to ensure compliant reimbursement under Norwegian tax regulations

Taxable Categories

Personal Mobile Phone and Broadband: When the employer covers mobile phone and/or broadband expenses in whole or in part, the employee receives a taxable benefit of NOK 4,392 per year. Any approved mobile phone or broadband expenses are therefore treated as taxable and reimbursed through payroll.

Gifts: Gifts provided to clients require supervisor approval and are considered taxable.

Expenses with Special Requirements

Mileage: Mileage is reimbursed at statutory rates:

• NOK 3.50 per km for passenger and electric cars
• NOK 2.95 per km for motorcycles
• NOK 2.00 per km for mopeds
• NOK 1.00 per km per passenger

Detailed journey information (route, distance, dates, purpose, and passengers) is mandatory. Rates may be revised in line with updates from the Norwegian Tax Administration.

Per Diem Allowances: Per diems are payable subject to statutory limits and travel duration.

• Domestic travel: Per diems apply only when the temporary workplace exceeds 6 hours, with rates varying based on trip length and accommodation type.
• Foreign travel: Per diems are based on official country rates and paid at 50% (6–12 hours) or 100% (over 12 hours) of the applicable rate.
• Per diems must be reduced when meals are provided, in line with statutory percentages. Any excess above tax-free limits is taxable.

Non-Taxable Expenses

These include business travel transportation, accommodation during business trips, meals reimbursed against receipts during business travel (in which case per diems do not apply), parking and tolls within allowed thresholds, client and staff entertaining within statutory limits and properly documented, computer equipment and software used exclusively for business purposes, stationery and office supplies, dongles and data cards for business use, foreign currency exchange commissions, exchange rate differences, approved work permits and visas, business-related training, professional institute and association memberships required by the job role (subject to tax assessment), and exceptional business-related cancellation costs, provided all expenses are wholly, exclusively, and necessarily incurred for business purposes and properly documented