VAT and customs duties due on all B2C imported consignments 1 January 2024
From 1 January 2024, Norwegian VAT and customs duties is payable on all B2C import consignments. This ends the NOK 350 (approx. €31) exemption threshold which was introduced on 1 April 2020.
Non-resident businesses may still use the VAT on E-commerce (VOCE) simplified reporting regime. Sellers must digitally report their VOES numbers and consignments to Tolletaten (Norwegian Customs) and their customs agent.
This is similar to the EU e-commerce package which removed the €22 VAT exemption in July 2021. However, the €150 customs duties threshold is still in place.
April 2020 – NOK 350 low-value consignment relief withdrawn
Import VAT is now due on all imported distance sales where an item does not exceed NOK3,000. Non-resident may now use a new simplified VOCE reporting regime to report and remit VAT on these sales. However, if the non-resident trader exceeds the VAT registration threshold, currently NOK 50,000 per annum, they must VAT register and charge VAT on all sales through the normal ‘VAT Register’.
Providers of digital of electronic services can use the Norweigan VAT on Electronic Services VOES process.
Facilitating marketplaces or electronic ‘intermediaries’ will also take on responsibilities for charging sales VAT on certain seller transactions. They too may use VOEC.
VAT due on imports items not exceeding NOK3,000
VAT is now due on all imports of goods being sent to B2C customers. In addition, foreign sales to Norwegian consumers will have to charge 25% Norwegian VAT at the point-of-sale for goods valued at or below NOK 3,000. This threshold applies per item, and not per consignment as per the EU IOSS regime with its €150 limit on sales VAT in the checkout.
The NOK3,000 threshold is also the Norwegian customs duties exempt threshold. For VAT, insurance and transport costs are excluded when determining if sales VAT is due and the NOK3,000 threshold. But they should then be added to the tax base when calculating the VAT due.
If the item is above NOK3,000, then the old import VAT requirement still applies – the seller or customer must pay VAT at customs. However, if the seller surpassed the annual registration threshold of NOK50,000, then they must VAT register and charge sales VAT on all sales. These transactions are then recorded through a regular VAT return and not the VOEC.
If items within the VOEC scheme and non-VOEC items are sold in the same transaction and sent in the same consignment, the supplier can choose not to charge VAT for the item(s) within the VOEC scheme, and make the whole shipment subject to border taxation. This possibility does not exempt the supplier from registering in the VOEC scheme and charging VAT on items within the VOEC scheme on purchases or shipments that consist of only VOEC items.
Simplified VAT registration for foreigners – VOEC
Sellers or intermediary marketplaces may use the simplified VAT registration portal, VAT on E-Commerce (VOEC). Foodstuffs and excise goods providers may not use the VOEC registration.
Registered businesses will be given a unique VOEC number which should be added to each parcel to indicate sales VAT was charged in the checkout and will be reported. This will ensure the goods will pass through a new ‘green lane’ clearance process with customs, ensuring speedy delivery.
There is no right to reclaim any Norwegian VAT under the VOEC scheme. If a non-resident does incur business expense VAT, they may file a VAT reclaim.
Marketplace Norwegian deemed seller obligations
When the sale is facilitated or takes place via an electronic intermediary, then a flash sale must be first made from the seller to the marketplace at zero VAT.
The marketplace may then make a VAT sale to the Norwegian consumer. If the seller makes no direct sales to Norwegian consumers, they do not need to VAT register. Typically, where the marketplace is responsible for the transfer of the electronic service and digital file, this triggers the VAT obligation.
Marketplaces may use the quarterly VOEC or regular bi-monthly VAT Register tracks for reporting and paying VAT.
