Norway is updating their VAT systems for low value goods being imported directly to private customers. As of the 1st April 2020, the new VAT On Electronic Commerce (VOEC) scheme will come into force. The VOEC system is an extension of the VOES scheme (VAT On Electronic Services) currently in place in Norway.
What are the VAT new rules?
Foreign sellers and intermediaries with a total turnover in Norway exceeding NOK 50,000 within a 12 month period will be liable to pay VAT on all low value goods to private consumers in Norway. A ‘low value good’ is considered a physical good valued at less than NOK 3,000 (excluding shipping).
A seller that qualifies for VOEC will register for the simplified scheme and collect VAT at the point of sale. They will then be able to import goods without a customs declaration but must provide the VOEC information on import documents.
VAT collected at point of sale will be paid alongside a VAT declaration on a quarterly basis in line with the calendar year. We help to register sellers and file the VOEC VAT declarations.
What is excluded from the VOEC scheme?
There are restricted items from the scheme including:
- Foodstuffs meant for human consumption (including supplements)
- Goods that are subject to excise duty (such as alcohol and tobacco)
- Restricted or illegal goods within the Norwegian law
Items that are valued over NOK 3,000 will be treated according to the current VAT rules surrounding importation of goods.
I’m selling on a marketplace – how does this affect me?
Under the new rules, marketplaces will be responsible to collect the VAT and declare this to the tax authorities. You as the seller do not have to register for the VOEC scheme if you only sell on a marketplace.
If you sell on both your own website and a marketplace, you would register for VOEC to declare VAT to Norwegian consumers buying from your website. You do not need to declare the VAT on goods sold through the marketplace.