Nitrogen (N) cycling in organic tundra soil is characterised by pronounced seasonal dynamics and strong influence of the dominant plant functional types. Such patterns in soil N-cycling have mostly been investigated by the analysis of soil N-pools and net N mineralisation rates, which, however, yield little information on soil N-fluxes. In this study we investigated microbial gross N-transformations, as well as concentrations of plant available N-forms in soils under two dominant plant functional types in tundra heath, dwarf shrubs and mosses, in subarctic Northern Sweden. We collected organic soil under three dwarf shrub species of distinct growth form and three moss species in early and late growing season. Our results showed that moss sites were characterised by significantly higher microbial N-cycling rates and soil N-availability than shrub sites. Protein depolymerisation, the greatest soil N-flux, as well as gross nitrification rates generally did not vary significantly between early and late growing season, whereas gross N mineralisation rates and inorganic N availability markedly dropped in late summer at most sites. The magnitude of the seasonal changes in N-cycling, however, clearly differed among plant functional types, indicating interactive effects of seasonality and plant species on soil N-cycling. Our study highlights that the spatial variation and seasonal dynamics of microbial N transformations and soil N availability in tundra heath are intimately linked with the distinct influence of plant functional types on soil microbial activity and the plant species-specific patterns of nutrient uptake and carbon assimilation. This suggests potential strong impacts of future global change-induced shifts in plant community composition on soil N-cycling in tundra ecosystems.