Norway’s 2027 budget for charities: VAT compensation, course cuts and what happens before Christmas

Norway’s 2027 budget proposal keeps full VAT compensation for the voluntary sector: the government wants NOK 3.25 billion, NOK 171 million more than in 2026. At the same time, course funding through the adult-learning associations is cut, and the rule-based scheme Parliament asked for is only being studied. Nothing is final yet – the Storting votes on the budget before Christmas.

Here is what affects clubs and charities, as of October 2026, based on the budget proposition, Parliament’s decisions this spring and the rules of the Norwegian Gaming and Foundation Authority (Lottstift).

Key facts from the budget proposal of 7 October 2026:

• VAT compensation for voluntary organisations: NOK 3.25 billion (2026: NOK 3.079 billion).
• VAT compensation for building sports facilities: NOK 415 million, up NOK 15 million.
• Culture ministry grants to adult-learning associations: NOK 167.6 million (2026: NOK 204.8 million).
• The electricity subsidy for voluntary organisations continues with NOK 165.2 million.
• Rule-based VAT compensation: to be studied, with no deadline.
• Tax deduction for donations: unchanged at NOK 25,000 per person.

What is VAT compensation, and how much is proposed for 2027?

VAT compensation (momskompensasjon) is a state grant that refunds voluntary organisations in the Register of Non-Profit Organisations for VAT paid on goods and services. It is based on the previous year’s accounts, using either a simplified model or documented VAT costs, according to the Norwegian Gaming and Foundation Authority.

According to the government’s press release of 7 October 2026, the scheme would grow by NOK 171 million to NOK 3.25 billion. Culture Minister Lubna Jaffery (Labour) calls the scheme simple and unbureaucratic, and the government says the amount secures full compensation.

Frivillighet Norge, the sector’s umbrella body, is less certain. Secretary General Stian Slotterøy Johnsen says in the organisation’s budget review that the amount set aside is “probably too low”. It still expects the government to top up the budget in December, as it has every year since 2021.

Why does that matter? The scheme has a fixed annual cap: Parliament sets the amount each year, and if it falls short, every application is cut by the same percentage. Roughly 25,000 organisations receive compensation, according to a parliamentary committee report from April 2026.

Will the VAT compensation arrive before Christmas?

Money arriving this winter has nothing to do with the NOK 3.25 billion. Applications sent by the 1 September 2026 deadline are based on 2025 accounts and paid from the 2026 budget (NOK 3.079 billion). The 2027 proposal funds the next round, paid in December 2027 at the earliest.

When this year’s money lands depends on when Parliament handles the final revision of the 2026 budget. According to Lottstift’s key figures, 24,940 organisations shared NOK 2.87 billion in the 2025 round. It was paid in December 2025 and January 2026 because Parliament handled the budget revision late. No date has been promised this year.

Lottstift contacts applicants through the Altinn portal, so make sure whoever applied has the “Post og arkiv” role and notifications switched on.

What is happening with rule-based VAT compensation?

Rule-based VAT compensation means the refund is set by objective rules rather than an annual cap – in practice, an entitlement for organisations. On 5 May 2026 the Storting asked the government to propose such a scheme by the time it presented the 2027 budget, and to keep compensation at 100 per cent with no cuts.

That has not happened. In the budget proposition (Prop. 1 S, Ministry of Culture and Equality), the ministry says it will study a possible statutory scheme and involve the voluntary sector. An entitlement requires an open-ended appropriation backed by rules adopted by Parliament. No deadline is given.

Frivillighet Norge says it is disappointed that the government is not following up Parliament’s decision by introducing a rule-based scheme from 2027. Until that changes, full compensation depends on the budget being topped up every December.

Why is course funding for adult-learning associations being cut?

Adult-learning associations (studieforbund) channel state grants to courses run by member organisations to lower fees. In 2025 the grants supported 401,782 participants on 40,051 courses, according to the proposition.

For 2027, the culture ministry’s grant line would fall from NOK 204.8 million to NOK 167.6 million – a cut of NOK 37.2 million. Frivillighet Norge estimates the total cut, including the Ministry of Education’s share, at more than NOK 70 million, and points out that the scheme is under evaluation.

Smaller grants mean higher fees or fewer courses. If you have planned 2027 courses with such support, build in a buffer until the cut is confirmed – or reversed.

What else in the budget affects clubs and charities?

• Sports facilities: VAT compensation for construction would rise by NOK 15 million to NOK 415 million.
• Electricity subsidy: NOK 165.2 million, covering the fourth quarter of 2026 and the first three quarters of 2027, because the subsidy is paid in arrears.
• Volunteer centres: NOK 296.1 million, but no new centres in municipalities that already have one.
• Donation deduction: unchanged at NOK 25,000 per person, the same level since it was halved in 2022 – so it is gradually worth less.
• Buildings: no separate VAT compensation for property, although Parliament asked for one to be considered in March 2026.
• Open grant schemes: more earmarked grants become open calls, especially under the Ministry of Justice.

That last change means more competition for the same money. Our guide Find and win more grants shows how to find schemes and write strong applications. Our article on Norway’s public support register shows who receives public support.

What happens in Parliament before Christmas?

The government needs a majority, so the course cut may change in negotiations. Frivillighet Norge and Knif invited politicians to a briefing at Frivillighetens Hus in Oslo on Monday 20 October, and the Family and Cultural Affairs committee has scheduled its hearings for this week.

Under Parliament’s Rules of Procedure, the finance committee must deliver its budget framework by 30 November, and the final budget must be adopted by the last sitting day in December.

What should your board do now?

1. Confirm your listing in the Register of Non-Profit Organisations – it is required at the deadline and at payout.
2. Check the Altinn “Post og arkiv” role and notifications so you catch any questions from Lottstift.
3. Budget for the VAT compensation arriving in January rather than December, especially if cash flow is tight.
4. Ask your adult-learning association what the cut means for your 2027 courses.
5. Give input through your federation or umbrella body.
6. Free up money elsewhere: many non-profits still pay for tools they could get for free – see our overview of free software for non-profits.

To follow the budget process with other organisations, you are welcome to become a member of OpenInfo.

Frequently asked questions

What does Norway’s 2027 budget mean for clubs and charities?

Full VAT compensation of NOK 3.25 billion and a continued electricity subsidy, but course funding is cut by more than NOK 70 million according to Frivillighet Norge, and rule-based compensation is postponed.

When is Norway’s VAT compensation for charities paid out?

After applications have been processed and Parliament has dealt with the final revision of the current year’s budget in December. Last year it came in December and January.

Will VAT compensation become an entitlement?

Not yet. Parliament asked for rule-based funding in May 2026, but the government is studying a statutory scheme and has set no deadline.

Will the tax deduction for donations rise in 2027?

No. The ceiling for the tax deduction on donations is proposed unchanged at NOK 25,000 per person.

Has the 2027 budget been adopted?

No, it is a proposal. Parliament adopts the spending frameworks around the turn of November and December, and the final budgets no later than the last sitting day in December.