The application deadline for compensation for lost stock is passed.
See Section 3-6 of the Regulation (in Norwegian).
In order to apply for compensation for lost stock, the enterprise must first meet the general conditions for applying for compensation.
For the grant period December 2021 – January 2022 costs attributable to lost stock may be reimbursed if:
- the enterprise was ordered to stop all serving or close for infection control reasons in accordance with the COVID-19 Regulation or equivalent municipal regulations, and
- the goods are fresh produce such as foodstuffs, other perishable goods, flowers or other plants, and
- the goods were ordered before the suspension of serving or closure took effect, and
- the shelf-life of the goods expired, or the goods deteriorated so much that they ceased to be of saleable quality, during the period of closure or within 14 days after the end of the period of closure or suspension of serving.
It should be noted that you must include the loss in the grant period during which the goods actually deteriorated or expired. You cannot combine lost stock for several grant periods in a single application.
Enterprises that were ordered to stop serving alcohol completely can normally only receive compensation for the loss of alcoholic beverages. If an enterprise closed because the ceasing of alcohol sales made it unprofitable for it to remain open, it can also receive compensation for other lost stock. In this case, a statement must be provided which shows that the ceasing of alcohol sales made it unprofitable to stay open.
Acquisition cost with deduction for wastage
Lost stock will be reimbursed at acquisition cost, excluding excise duties. Value added tax which the enterprise can deduct in its VAT returns must not be included in the acquisition cost. The acquisition cost must be reduced by any compensation paid for lost stock to the enterprise under an insurance policy or from other sources. A percentage is established for normal goods wastage which will be used to reduce the acquisition cost:
a. If, during the last financial year which ended before 1 March 2020, the applicant submitted information concerning goods wastage, the percentage can be set to the percentage that wastage recognised in the balance sheet (capitalised wastage) constituted of goods purchases made during the financial year. If capitalised wastage and goods purchases have been itemised per goods type, separate percentages can be used for each type of goods.
b. If the applicant does not calculate the percentage referred to in a), the percentage will be set to 7 percent.
Donation of lost stock to charitable causes
Enterprises that give away some of their stock to a charitable cause can apply for compensation for this, provided that the stock would otherwise have been lost.
It should be noted that when an enterprise gives away goods as a donation, the enterprise will normally be subject to income taxation with regard to this as if the goods had been sold at sales value (see the rules concerning withdrawal taxation in Section 5-2 of the Tax Act). This income will not be regarded as turnover under the Compensation Regulation. The donation will therefore not affect the estimated decrease in turnover even if the donation by the enterprise must be recognised as income for tax purposes.
The applicant must document the acquisition cost and substantiate the loss.
- Prepare a written statement and explain why the loss arose, citing state or municipal suspension or closure orders. You must also explain why it was not possible to avoid the loss and what has happened to the lost goods. If the goods were donated to a charity, the account must include a statement of the recipient of the donation, what was covered, and when the donation took place. Enterprises that experienced a full lockdown due to the temporary ban on sale of alcohol, and who whish to apply for compensation for other losses than the destructed alcohol, must specify the period that the enterprise was in lockdown and make an account of why the lockdown made it unprofitable to keep other services open.
- Prepare a list of the individual types of goods concerned, with a statement of the number or quantity of goods and acquisition cost, with a reference to relevant accounting documents, any compensation for the lost goods, normal wastage as a percentage and amount, and the grant-eligible amount.
Basis for application for compensation for lost stock
|Documentation of acquisition cost
|Deduction for wastage
|NOK 20 /litres
|NOK 250 /kg
It is the grant-eligible amount that must be stated on the application form.
You apply for compensation for lost stock using the same application form as the general compensation scheme for the business sector. You can submit an application for compensation for lost stock without applying for compensation for fixed, unavoidable costs at the same time.
For those who have already had an application approved and now wish to apply for compensation for lost stock for the same period, it is important to note that you must enter all figures from the original application, in addition to figures for lost stock. It is always the most recently submitted application that applies; a new application will automatically supersede any previously submitted application. If payment is approved, any amount you have previously received will be deducted from the amount disbursed.