On Thursday 27th November, the Norwegian VAT authority announced its proposed changes to the Value Added Tax (VAT) rules that apply to non-resident businesses selling and shipping directly to consumers in Norway.
From April 1st 2020, any business importing goods up to the value of NOK 3,000 into Norway and selling the goods to consumers, will need to register for VAT locally.
Currently, at import into Norway, consumers can pay the VAT owed at clearance meaning that the non-resident suppliers avoid the need for VAT registration in Norway. However, under these new rules the VAT liability for these low value imports will shift from the consumer to the non-resident supplier, meaning that subject to meeting the NOK 50,000 registration threshold, the non-resident supplier would need to VAT register in order to report and remit VAT in the country.
This new regime is an extension to the simplified scheme already in place for cross-border sales of electronic services to consumers (VOES). When introduced, the new system will apply to sales made directly to the consumer and not via an electronic marketplace (Amazon, eBay, Alibaba etc.), as in this scenario the marketplace will be deemed the supplier and would be responsible for the VAT reporting.
The Norwegian tax office also confirmed they will provide a simplified VAT registration and reporting process to accommodate businesses that need to register.
The SAF-T regulations will not apply for the VOES registrations. However, it is not yet clear whether the SAF-T regulations will apply for the simplified registrations for the non-resident online sellers.
Vatglobal is happy to assist your business with these registrations and ongoing compliance.