VAT on low value imported goods to Norway – Important changes from 1 April 2020

February 24, 2020

As of 1 April 2020, Norway will introduce a simplified VAT regime for sellers and intermediaries. Online marketplaces will be liable for VAT on cross-border sales of low value goods to consumers in Norway (B2C sales).

The new system has similarities with EU VAT scheme for B2C imports of low value goods – below 3.000 NOK (aproximatelly 300 EUR, 330 USD) – from 2021 (OSS). For more detailed information about OSS please read our post MOSS turning into a OSS.

Foreign suppliers that sell low value goods to final consumers in Norway, are obliged to register and manage their VAT liabilities on sales of low value goods in the simplified scheme VOEC (VAT On E-Commerce), if annual turnover exceeds 50,000 NOK (approximately it is 5.000 EUR, 5.500 USD). Zero rated goods are to be included in the calculation of the turnover limit. If a seller uses an electronic marketplace to sell low value goods, only the operator of the marketplace will be regarded as the supplier for VAT purposes.

As VOEC-scheme is an extension of the current scheme for electronic services called VOES (Vat On Electronic Services), a supplier with an existing registration in the VOES scheme may use the same registration and “vendor ID” (registration number) for both electronic services and low value goods.

Why is it important to be VAT compliant in Norway? 

VAT authorities can stipulate VAT by discretionary judgement and impose sanctions: additional tax or penalties, if a supplier provides incorrect or incomplete information or fails to submit a VAT return.

Advance registration in the VOEC scheme is open from 17 February 2020.

If you have any questions or need more detailed information, please contact us.