What you should know about Norway's VOEC scheme
March 20, 2020
Learn about Norway's VOEC (VAT on Ecommerce)
As of April 1st, 2020, Norway implemented a simplified VAT scheme called VOEC (VAT on Ecommerce). This new scheme replaces the current VAT exemption of 350 NOK on low-value imported goods to consumers.
- The tax de minimis changes for all goods to zero. VAT is applied to all items, regardless of value or whether or not you are VOEC-registered.
- All goods shipped within the VOEC scheme are now duty-free. For goods outside the scheme, the duty de minimis changes to zero, and those goods incur duty regardless of value.
Here's what we'll be covering below in this post:
- What does Norway's VOEC scheme mean?
- Who is impacted by the Norway VOEC?
- Actions needed, if any
- How Zonos can help
With this new law, foreign sellers and online marketplaces (not established in Norway) must register with the Norwegian Tax Authority once their VAT liable sales reach 50,000 NOK (approximately 5,500 USD or 5,000 EUR) during a 12-month period. They are also required to collect VAT at the point of sale on low-value goods (valued at less than 3,000 NOK) and remitted back to the Norwegian Tax Authority on a quarterly basis.
This simplified scheme affects B2C businesses if they meet the following thresholds for selling goods into Norway.
- More than NOK 50,000 (~$5,500 USD or €5,000 EUR)
- Low-value goods valued under NOK 3,000 (~$313 USD or €273 EUR)
Where possible, Zonos will notify its customers if they are close to the NOK 50,000 threshold, but they are also welcome to verify their sales data to Norway customers.
The Norway VOEC scheme does NOT apply to the following types of goods.
- Foodstuffs (goods meant for human consumption), such as nutritional/dietary supplements
- Goods subject to excise duties, such as tobacco and alcohol that are subject to import control
- Restricted imports or illegal goods according to Norwegian law
If you will not be over the 50,000 NOK threshold in a 12-month period and will not sell low-value goods below NOK 3,000 directly to Norwegian consumers, then there's nothing you will need to do!
For those that are over the 50,000 NOK threshold (or expect to meet this amount in a 12-month period) for low-value goods under 3,000 NOK, you will need to register with the Norwegian Tax Authority. See information below for registration details.
VAT also needs to be collected at the point of sale. Ensure you maintain report information of VAT collection and remit back to the Norwegian Tax Authority on a quarterly basis.
VAT needs to be reported and paid beginning on the 1st of January, 1st of April, 1st of July, and the 1st of October. Payment will be due 20 days after the end of the quarter.
For example, payment for Q4 beginning on the 1st of January is due by the 20th of January.
How to register with the Norwegian Tax Authority
The supplier (either the seller, an intermediary agent, or electronic platform) needs to register.
After initial registration, you will be given an identification (VOEC) number and password.
Avoid double taxation
To avoid a second VAT collection at the border, make sure to keep records of VOEC information that shows VAT has already been collected at the point of sale.
- We will let Zonos customers know if they are getting close to the Norway VOEC threshold.
- We can register any affected business for Norway's VOEC scheme on their behalf.
- Zonos Hello can help inform Norwegian customers when they won't pay any duty or VAT.
- We can also collect tax at checkout for Norwegian customers.
- We will continue to keep our customers informed of the latest updates to Norway's VOEC scheme along with any other country taxation updates.
Feel free to contact us, or check out the links below for further reading.
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