Norway's Tax Authority may impose value-added tax on VG+ digital subscriptions from 2020 to 2024. The potential tax decision affects one of Norway's largest media companies.
Stine Halla, finance director at Schibsted, confirmed the development in a press release. She stated the company disagrees with the preliminary conclusion.
Halla said the tax authority misunderstands what VG+ represents. She argued the decision threatens predictability for sustainable media business models.
Vend Marketplaces ASA received the formal notification about the potential VAT. The company previously owned Schibsted's media operations.
If implemented, the tax could cost the company up to 500 million Norwegian kroner. That equals approximately 45 million US dollars.
VG+ is a premium subscription service offering ad-free content and exclusive articles. It represents a key revenue stream for Norwegian media amid declining print subscriptions.
The tax dispute highlights growing tensions between digital services and tax authorities. Governments increasingly seek revenue from digital platforms and subscription models.
Norwegian media companies face particular challenges with digital transition. Many rely on subscription revenue while competing with global tech giants.
This potential tax liability comes during a difficult period for media companies. Advertising revenue has declined while production costs continue rising.
The Tax Authority's position suggests digital content may face similar treatment to physical goods. This could set a precedent for other digital subscription services in Norway.
Media analysts note the decision could force price increases for consumers. Companies often pass tax costs directly to subscribers through higher monthly fees.
Norwegian digital media tax policies remain in flux as authorities adapt to changing business models. The final decision could influence how other Nordic countries treat digital subscriptions.