New customs regulations in Norway: what you need to know.
In the ever-changing world of e-commerce, Norway is preparing to implement significant changes to its VAT regulations from January 1, 2024.
Mirroring what has been done for the UK as part of the Brexit, these changes aim to simplify the process of taxing cross-border sales, but they have a significant impact on online sellers.
To help you understand and comply with these new rules, here's what you need to know.
End of VAT exemption for low-value goods and new responsibilities.
Until now, goods valued at less than NOK 350 (approx. €30) shipped by foreign vendors to Norwegian consumers were exempt from VAT. From January 1, 2024, this exemption will end. This means that online sellers and marketplaces will have to pay VAT on these low-value goods up to NOK 3,000 (≈260€).
At the same time, merchants shipping products to Norway will be required to declare their VAT to VOEC (Vat On E-Commerce) on a quarterly basis. And this will be calculated according to the HS/Tariff code, enabling a more specific assessment.
To find out the HS/Tariff code, consult our customs charge calculator.
The VOEC system applies to most products, but there are exceptions. Foodstuffs, dietary supplements, tobacco products, alcoholic beverages and excise products are not covered by the VOEC system. In addition, items prohibited by Norwegian law are not eligible for VOEC.
Please consult our country fact sheet for information on prohibited goods.
Please note: Shipments over NOK 3,000 are not covered by VOEC and must be cleared in Norway by the recipient. The consignee must pay customs clearance fees, duties, VAT and any other applicable taxes.
What do you need to do to comply?
For a smooth transition to compliance, please give yourself enough time to obtain your VOEC number. Then inform your customers of the changing regulations to limit any inconvenience to their purchases, and ensure a seamless shipping and delivery experience to Norway.
Follow these key steps:
- Get your VOEC number:
Register on the Norwegian tax administration website, by creating your user account.
Register your company in the VOEC repository to obtain your VOEC number. - Collecting Norwegian VAT:
Once you've obtained your VOEC number, make sure you collect Norwegian VAT (25% rate) from your customers on every purchase. - Transfer Norwegian VAT:
Transfer collected VAT to the Norwegian tax authorities, which can be done online or by bank transfer.
And in Colissimo tools?
On your Coliship franking tools or the franking Webservice, the VAT number (seven digit VOEC-number) must be transmitted and indicated in the "Référence en Douane" field (which corresponds to the ITMATT* "sender.identification.reference" field).
What happens if you don't comply?
The direct consequences of a shipment to Norway that does not comply with these regulations and does not have digitized customs information (ITMATT) are as follows:
- Possible extension of delivery times
- Additional administrative costs
- Possible double collection of customs duties and taxes (departure country/destination country)
So don't wait any longer!
For further information, please visit the official Norwegian Tax Administration page.
* ITMATT « ITeM ATTribute». UPU message standard for sending electronic customs information.
