Turnover – how to calculate the decrease in turnover (September 2020 – February 2021)

In order to be eligible for a grant, the enterprise must have recorded a decrease in turnover which is mainly due to the coronavirus pandemic.

Help on how to calculate this is given below.

Decrease in turnover of at least 30 percent

In order to be eligible for a grant, the decrease in turnover must have amounted to at least 30 percent during the grant period compared with the comparative period.

How to calculate the decrease in turnover for the grant period

To determine the decrease in turnover, you must compare the enterprise’s actual turnover during the grant period, with the turnover during the corresponding period of the previous year (the comparative period). The decrease in turnover constitutes the difference between the turnover during the comparative period and the actual turnover during the grant period.

If the enterprise was established less than one year before the period for which a grants is being sought, you must use the turnover for January and February 2020 as a basis for comparison. The same applies to enterprises that were established but did not record any turnover during the corresponding period during the previous year.

Enterprises that were part of a merger during the comparative period or later may include the turnover from the transferring company.

Enterprises that were the transferor or transferee in a demerger registered as completed in the Register of Business Enterprises during the period 1 September 2019 to 31 December 2019 must use the turnover in the calendar months January and February 2020 as the basis for determining the decrease in turnover.

Enterprises which acted as the transferor or transferee in a demerger registered as being completed in the Register of Business Enterprises during the period 1 January to 29 February 2020 and which are not covered by the exemptions in Section 1-3 second paragraph (a) – (c) must use the turnover after the demerger in this period as a basis for calculating the decrease in turnover.

You must use the following figures:

For the grant period, you must provide details of income from sales of delivered goods and services performed, even if they have not been invoiced. Sales of goods and services must be within industries which are covered by the scheme. It is the grant period as a whole that must be used as a basis.

Turnover also includes income safeguards as compensation for income, including government subsidy schemes provided in connection with the coronavirus pandemic. However, this does not apply to grants awarded under the general compensation scheme, or to aid from municipalities awarded in accordance with the regulations concerning de minimis aid. Compensation for lost stock is also not considered to constitute turnover.

For sole proprietorships and partners in general partnerships, sickness benefit, parental benefit, care allowance and carer’s allowance are regarded as turnover

Income or return on capital, property and other financial assets must not be included. However, rental income from property is still considered to constitute turnover.

For the comparative period, you must provide details of income from sales of goods delivered and services provided. Sales of goods and services must be within industries which are covered by the scheme in Norway. It is the period as a whole that must be used as a basis.

Enterprise B was established in December 2019 and must use the turnover figures from January/February 2020 as a basis for the comparison. The enterprise recorded the following turnover during these periods:

January/February 2020: NOK 400,000
September/October 2020: NOK 340,000

Decrease in turnover:
400,000 – 340,000 = NOK 60,000

Decrease in turnover in %: 60 000/400 000 * 100 = 15%

Because the decrease in turnover is less than 30 percent, enterprise B is not eligible to apply for a grant for the period September/October 2020.