Navigating Norway's New VAT Regulations: What E-commerce Sellers Need to Know

In the dynamic world of e-commerce, staying ahead of shifting regulations is crucial. Norway, a thriving market for online businesses, is introducing significant changes to its VAT regulations in 2024. These updates are designed to streamline the taxation process for cross-border sales, but what exactly do they mean for e-commerce sellers?

VAT in Norway - Actual Regulations

No More VAT Exemption for Low-Value Goods

Starting from January 1, 2024, Norway is abolishing the VAT exemption and other indirect taxes on low-value goods valued below 350 NOK, sent from foreign sellers to consumers (B2C). This change places new responsibilities on sellers and online marketplaces.

Sellers' VAT Liability for Cross-Border Sales

Sellers and online marketplaces will now be liable for VAT on cross-border sales of low-value goods to recipients in Norway for all shipments with a value below 3000 NOK.

VAT on E-Commerce (VOEC) System – A Mandatory Requirement

For items valued below NOK 3000, registration for the VAT on E-Commerce (VOEC) system is now mandatory. This system applies to VAT only and necessitates quarterly VAT returns.

Detailed VOEC Guidelines

• VAT Calculation: VAT is now calculated per HS code/tariff, providing a more specific assessment.
• Parcel Inclusion: All individual items in one parcel qualify for the VOEC if they are considered "Low Value." For instance, even if a parcel contains two products worth NOK 2000 each, it is still covered under the VOEC scheme, even if the total parcel value exceeds NOK 3000.
• No Customs Clearance Fee: Items cleared under VOEC will not incur a customs clearance fee.
• Digital VOEC Number: The VOEC number must be provided in digital format, typically in the ITMATT for postal items.

Non-VOEC and High-Value Items

Items not registered in VOEC and those exceeding NOK 3,000 will be subject to customs clearance into Norway. The recipient will be responsible for customs clearance fees, customs duties, VAT, and any other applicable taxes.

VOEC Exclusions

The VOEC scheme includes almost all goods, except for a few exceptions:

• Foodstuffs/Dietary Supplements: These will be charged ordinary import duties and taxes, regardless of shipment value.
• Tobacco Products/Alcoholic Beverages/Excise Products: These fall outside the VOEC scheme.
• Other Restricted or Illegal Goods: Items prohibited by Norwegian law are not eligible for the VOEC scheme.

Registration and Submission Process For e-commerce sellers looking to navigate these changes, the registration process is streamlined through the Norwegian Tax Administration website. After registration, you'll receive an identification number and password.

Filing VAT Returns The simplified registration, reporting, and payment processes take place through the Norwegian Tax Administration's dedicated web page. This user-friendly platform ensures that sellers can efficiently manage their VAT obligations.

As Norway takes steps to modernize its VAT regulations for e-commerce, adapting to these changes is essential for businesses looking to thrive in this market. By understanding and complying with the new rules, e-commerce sellers can continue to make their mark in this thriving online landscape.

For further guidelines and information, please visit the official Norwegian Tax Administration page.

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