Norway VOECLearn how the Norway VOEC law affecs your business.
The new VOEC (VAT on Ecommerce) law goes into effect on April 1st, 2020, and applies to ecommerce businesses selling to Norwegian consumers. This scheme is similar to the low-value goods law that Australia enacted in 2018 as well as the one New Zealand implemented in 2019.
Foreign sellers and online marketplaces who supply, or are likely to supply, more than NOK 50,000 to Norwegian consumers within a 12-month period will be required to collect and remit VAT to Norway on a quarterly basis. This law is an extension of Norway’s VAT on Electronic Services (VOES) law for VAT collection on electronic goods and was modeled after the European MOSS scheme.
To determine if you are over the NOK 50,000 threshold, consider the following:
- Low-value goods valued below NOK 3,000 each and sold directly to Norway consumers
- Online services and digital products sold directly to Norway consumers
When determining if an item is below NOK 3,000, make sure not to include shipping or insurance costs (although these will be used when calculating VAT on the shipment).
When applying an exchange rate to determine the good’s value, use the exchange rate applied at the time of sale. The exchange rate used must be a published rate within 30 days of the sale being made.
Norway provides the following sources that can be used for the exchange rate:
When determining if you’re above the NOK 50,000 threshold, the following items should not be considered.
- Goods valued above NOK 3,000
- Foodstuffs and any goods intended for human consumption. This includes any nutritional and dietary supplements. Medicinal drugs do not fall in this category and are restricted from import to Norway.
- Goods that are subject to excise duties. This includes items like tobacco products and alcoholic beverages. Visit Norway’s site to learn more about which goods qualify for excise duties.
- Any goods that are illegal or restricted for import into Norway. Click here to learn more about restrictions in Norway.
Registering for VOEC is a two-step process.
- Click here for steps on how to create a new user.
- Next, follow the steps at this link to register your business. (You will need your EIN or business tax ID.)
The Norway website has steps to show you what to expect as you go through user setup and get your business registered. Once you have completed these steps, you will receive an email from Norway within 1-2 business days with your assigned VOEC number.
After you’ve registered, you can return to your login here to remit payment when the time comes.
Once you're registered for VOEC, you will be required to provide your VOEC registration number (digitally or physically) on any shipments into Norway. This can be listed on the shipping label under the sender's tax ID field in thesender’s address information section. The VOEC number must be listed as “Sender’s customs reference no.” or “VOEC number.”
Not providing a VOEC number on the label can lead to delayed customs processing and double taxation as having the VOEC number listed serves as proof that VAT has been collected. As a fail-safe, it would be wise to also list on the commercial invoice that VAT has been collected. This will be used as proof in the event that a VOEC number is not listed on the shipping label.
Prior to April 1, 2020, the de minimis for duty and VAT into Norway was NOK 350 for all goods. For goods outside of the scheme, the de minimis for both duty and VAT will remain at NOK 350.
- With the new VOEC scheme, the tax de minimis value is changing for all goods to zero. So, VAT will be applied to all items regardless of value and regardless of whether or not you are registered for VOEC.
- The duty de minimis is also changing. Goods shipped within the VOEC scheme will be duty-free.
Multiple value items in the same shipment
If you are shipping a package that has both goods that are below and above NOK 3,000 in the same shipment, it will no longer qualify for the VOEC scheme, and Norway will assess duties and taxes on all goods at the border.
To prevent VOEC goods from incurring duty, Norway recommends splitting those goods into two shipments: one with the low-value goods and one with the high-value goods; however, this can lead to additional shipping costs, which can outweigh the benefit of having one package duty-free and the other charged both duty and tax.
So, we recommend not splitting the order into two shipments. Instead, ship the items together to have duties and taxes assessed on the whole package. Zonos will identify when you have items that fall within the VOEC scheme and when you have items that do not. We will calculate the applicable duties and taxes at the time of checkout, assuming the order will be shipped as one shipment.
Determining the amount of VAT payable
When reporting the payment of VAT to the Norway Tax Administration, all numbers must be reported in NOK. The same exchange rate used to determine if goods are below NOK 3,000 can be used to calculate the VAT due to Norway. However, the rate used can be:
- The rate used at the time of sale
- The rate that applies on the last day of the quarter (e.g. the rate on March 31st for April 1st remittance)
- The rate at the time of filling out the return. The latest rate that can be used is the rate that applies when payment is due (e.g. April 20th for the April 1st remittance).
- The rate at a different time if approved by the Norwegian Tax Administration
Payment of VAT is due quarterly, following the same deadlines as the VOES scheme (for electronic services). Payment will be due 20 days after the end of the period.
|Reporting period||VAT declaration and payment due by…|
|January 1st to March 31st||April 20th|
|April 1st to June 30th||July 20th|
|July 1st to September 30th||October 20th|
|October 1st to December 31st||January 20th|
If I am already VOES registered, can I remit VAT for other non-electronic goods under that number?
Yes - Norway allows you to use that registration number for both electronic services and other goods.
What if I qualify for VOEC but am not set up to collect VAT by the April 1st deadline?
Norway is offering a transitional period as this new law is getting rolled out, and businesses that are participating in this will not be penalized. Norway asks that proof is provided to them, showing you are taking steps toward becoming compliant with the law, and an extension can be allowed.