Norway Changes Tax Rules for Carbon Permit Trading, Nasdaq Says

Norway changed its value-added-tax rules to prevent fraud in the market for carbon-dioxide allowances, Nasdaq OMX Group Inc., which operates the Nord pool exchange, said in an e-mailed statement to its members.

The Norwegian Tax Authority announced the tax changes, which shifts the VAT levy from the seller to the buyer, on March 26, Nasdaq said.

The Scandinavian country yesterday arrested three people after an investigation into “carousel fraud,” where traders disappear after collecting tax and before forwarding it to countries.

European police agency Europol said in December that VAT fraud has robbed European nations of about 5 billion euros ($6.7 billion). The European Union carbon dioxide program is the world’s biggest greenhouse gas market.

Source: Business Week