A guide to VOEC - VAT on E-Commerce in Norway
In the new e-commerce scheme, non-established suppliers and online marketplaces are liable to account for VAT on sale of low value goods to Norwegian consumers. The scheme affect B2C sales of low value goods below 3.000 NOK If annual sales to Norway excited NOK 50.000.
The New obligations and reporting
Foreign companies selling goods to Norwegian consumers online will be obligated to register for VAT in Norway from the 1st of April 2020. The simplified registration for these entities is called VOEC (Valued Added Tax on E-Commerce), and is based on the existing legislation for electronic services.
What does it mean to me as a reseller?
A consequence of the new rules is that the previous CAT exemption for import of goods with a value below NOK 350 is abolished. The VOEC scheme shifts the obligation to calculate, collect and pay VAT to the seller. Goods that are compromised by this new legislation are also exempt from customs duties which makes it potentially profitable for certain suppliers.
VOEC is not mandatory, meaning that you can use the ordinary VAT registration system in Norway to fulfill VAT obligations in Norway instead.
How to register under VOEC
- Charge Norwegian VAT at the point of sale (checkout)
- Mark the shipments with your VOEC identification number
- Report and pay Norwegian VAT quarterly
Don’t worry, there are plenty of advantages to VOEC scheme compared to ordinary TAX registration
- Clothes and textiles are subject to customs duties in Norway, while goods within the scope of the VOEC scheme are exempt.
- Shipments imported through the VOEC registered companies will not be subject to customs declaration - making delivery times faster.
- The consumer avoids tax and custom duties upon arrival.
- Simple tax settlement with the Norwegian tax authority.
Should I register for VOEC?
- VOEC is only applicable for sale of goods below NOK 3.000. This means per item not per invoice or consignment
- You are as a seller required to label the packages with your VOEC identification number.
- If you choose not to register will the Norwegian consumer be obligated to pay VAT and a custom fee around NOK 150 with a slower delivery as a consequence.
How can Webshipper help with VOEC?
We recommend applying for VOEC if you ship to Norway. If you ship single packages from an e-commerce shop the advantages are more than enough to register. Webshipper provides a solution that are capable of reporting your VOEC identification number, which excludes your shipments from custom duties. The Norwegian authorities will charge the VAT every quarter based on the reporting made through the customs feature. You can add your own VOEC identification number, or make a clever automation that automatically adds the VOEC number to the consignment when it meets certain requirements.