The Norwegian government is stepping up the pace of digitalization.
A new bill proposes mandatory e-invoicing between companies from 2027 and fully digital accounting by 2030.
The reform is expected to save billions while making financial crime more difficult.
In an official announcement, the Norwegian government says it now wants to legislate for digital processes in business. The proposal means that all companies with an accounting obligation must send e-invoices to each other by January 1, 2027. Three years later, in 2030, the requirement for fully digital accounting will also be implemented.
The socio-economic benefits of the initiative are estimated at a staggering NOK 10 billion over a 20-year period.
"We will ensure that companies can spend more time on what creates value and less on administration and unnecessary reporting," says Norwegian Prime Minister Jonas Gahr Støre, Labor Party (Ap).
Bringing forward requirements
Although Norwegian businesses are already at the forefront of digitalization, much work is still done manually. This is an inefficiency that the government now wants to eliminate.
Interestingly, it has chosen to bring forward the e-invoice requirement by one year, from the original proposal of 2028 to 2027.
Finance Minister Jens Stoltenberg (Ap) justifies the decision by saying that the market is already mature.
"The digital maturity of the business sector is high and there is a wide range of digital solutions. This means that we can introduce the requirement earlier than planned," he says.
A weapon against crime
Beyond the purely financial and administrative benefits, the reform is seen as an important tool against financial crime. "Digital systems create an unbroken chain that is much easier for authorities to trace. The risk of manual errors is reduced, while transparency in transaction flows increases.
Minister for Enterprise and Innovation Cecilie Myrseth (Ap) emphasizes that standardization is the key to success:
"Legal requirements are necessary to get everyone on board. The more people who digitize, the greater the overall benefit for both companies and society at large."
Exemptions and future outlook
In principle, the proposal covers all businesses with an accounting obligation, from limited companies to foundations and sole traders. However, the Directorate of Taxes has been tasked with investigating certain exemptions, for example for small businesses with a turnover of less than NOK 50 000.
At the same time, they are already looking ahead. The Directorate of Taxes will now investigate whether similar requirements should be introduced for B2C invoicing and digitalization of receipt management. The investigation for the next step is expected to be completed in December.
Sources:
Regjeringen.no - Proposed requirements for e-invoices and digital bookkeeping in the business sector
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