Norway: Repeal of tax-free importation goods
Currently in Norway, the importation of goods from abroad is generally free of duties and VAT (provided that the value of the goods is less than NOK 350, including freight and insurance costs. This is not applicable for tobacco and alcohol).
VAT and customs duties/taxes/fees on low value goods imported
The government of Norway has announced changes to the assessment of VAT and customs duties/taxes/fees on low value goods imported into the country.
Under this new regulation, the exemption of VAT and customs duties/taxes/fees on low value goods sent from foreign sellers to consumers in Norway is being eliminated in two stages:
- The first on 1 January 2020
- The second on 1 April 2020
The intent is to charge VAT on all goods, regardless of its value, but to no longer charge customs duties/taxes/fees on low value items.
Changes implemented from 1 January 2020
From 1 January 2020, the exemption on customs duties/taxes/fees for low value goods, with a value below NOK 350, was eliminated for foodstuff and dietary supplements and VAT was introduced on these goods. All changes on these goods imported are paid by the addressee.
For tobacco and alcohol, there will be no change because these products are subject to excise duties today.
Changes implemented from 1 April 2020
From 1 April 2020 – the exemption for all other goods valued below NOK 350 will be eliminated and VAT will be introduced on these goods and will be paid by the seller.
New process called VAT on e-commerce (VOEC)
Custom duties/taxes/fees will no longer be charged on such goods when VAT is paid through a new VAT payment process.
This new process will be called VAT on e-commerce (VOEC) and it will apply to online marketplaces and sellers with annual sales of NOK 50,000 to Norwegian customers.
Under VOEC, companies will need to register with the Norwegian Tax Administration and remit the collected VAT on a quarterly basis.
Companies that have annual sales of less than NOK 50,000 to Norwegian customers will not be required under the VOEC system but can do so on an optional basis.
Goods with a value above NOK 3,000 are not eligible to be entered under the VOEC system. These items will be subject to VAT in addition to customs duties/taxes/fees.