Norway to introduce a simplified VAT regime for foreign sellers

Are you a supplier of low value goods to Norwegian consumers?

As of 1 April 2020, Norway will introduce a simplified VAT regime for foreign sellers of goods. Furthermore, online marketplaces will be liable for VAT on cross-border sales of low value goods to consumers in Norway. Low value goods means goods with a maximum value of NOK 3,000.  This is a significant change from previous import rules as foreign suppliers will need to register for VAT in Norway and start collecting VAT on sales of such goods to consumers in Norway. Foreign suppliers with an annual turnover in Norway below NOK 50,000 threshold do not have to register.

If a supplier fails to comply with the rules of the VOEC scheme, the goods shipped to Norway from the supplier will be subject to taxation at the border, the carrier or forwarder will have to charge the customer an extra fee for customs clearance, and the delivery to the customer might take longer time.

In recognition of the short timeframe until 1 April 2020, Norway will introduce transitional provisions to ease compliance in the implementation period. Online stores and marketplaces may, on request, be given time to make necessary technical system adjustments needed to provide necessary shipment information with the VOEC consignments and to calculate and collect VAT, conditions apply.

Sellers will need to comply with the new Import Rules

Sell > Charge > Ship goods to Norway

1. A Norwegian customer orders goods
2. The online platform charges VAT and receives payment
3. The order confirmation is received by the supplier/ warehouse
4. The supplier packs the goods
5. The supplier books transport. Information about value, contents and the sellers VOEC number must be provided
6. The supplier marks the consignment with the sellers VOEC number
7. The supplier ships the consignment
8. The carrier transports the consignment and informs Norwegian Customs about the shipment before it crosses the border
9. Customs clearance is carried out at the Norwegian border. VAT is already paid so there are no extra fees, taxes or duties
10. The consignment is transported to the customer

April is soon approaching, it is important for businesses to get ready for the upcoming VAT changes in Norway. Global VAT Compliance specialises in  helping international business be VAT compliant around the world offering VAT solutions to ecommerce Companies, so if you can foresee these developments impacting your business, do not hesitate to contact us.

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