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Digital services
About
Digital services
Goods
Digital services
Goods
Digital services
Starting from January 1, 2024, Norway abolished the exemption from customs declarations for low-value goods with a value not exceeding NOK 350. This means that all goods imported into Norway, regardless of their value, require customs clearance. VAT and any applicable duties will be charged from the first NOK, ensuring that all imports are taxed equally. Goods without a VOEC number will be detained at customs and cleared in accordance with standard VAT and duty procedures.
Also, starting from January 1, 2024, foreign companies participating in the VOEC scheme must provide their unique VOEC number in digital format to the party responsible for transporting goods to Norway. This requirement aims to simplify customs clearance and ensure that VOEC-registered goods are easily identifiable during import. This change will help reduce the likelihood of customs delays and applies to goods valued at under NOK 3,000, excluding restricted items such as food and excisable goods.
VAT Standard rate
The standard VAT rate in Norway in 2024 is 25%.VAT Reduced rates
In Norway, certain essential goods are taxed at a reduced VAT rate of 15%. This includes items such as food and non-alcoholic beverages. Other goods, like newspapers and printed books, (including audiobooks), and other publications may benefit from zero VAT rates to promote accessibility and affordability.Effective from January 1, 2023 Norway extended the VOEC (VAT on E-commerce) scheme to include all services that can be delivered remotely, such as consulting and legal services. This expansion requires foreign businesses offering digital services to Norwegian customers to register for VOEC and charge VAT at the point of sale. The update ensures that a broader range of cross-border services, particularly digital services, are subject to VAT
VAT Standard rate
The standard VAT rate in Norway in 2024 is 25%.VAT Reduced rates
Public transport, hotel stays, and entry to cultural events like theaters and museums are taxed at a 12% VAT rate. These reductions are aimed at making essential and socially beneficial services more accessible to consumers.
VAT Standard rate
25%
VAT Reduced rate
15%, 12%
Thresholds
NOK 50,000
Thresholds
A foreign business must register for VAT if it sells goods to Norway and exceeds the NOK 50,000 threshold within 12 months. Once a foreign business surpasses the threshold, it can register with the Norwegian VAT system through the VOEC (VAT on E-commerce) scheme for simpler compliance, particularly if it sells low-value goods (under NOK 3,000). This scheme allows foreign sellers to charge VAT at the point of sale, making customs clearance smoother and faster. The VAT threshold in Norway is set at NOK 0 in specific cases, meaning foreign sellers must register for VAT regardless of their sales volume. This applies if the seller uses a local warehouse in Norway, such as Amazon FBA, or if they sell excise goods like tobacco or alcohol.Deductible VAT
Businesses registered for VAT in Norway can deduct VAT paid on purchases (input VAT) if those goods or services are directly used to make taxable supplies within Norway. This includes:- VAT Paid at Customs Clearance: When importing goods, businesses can pay VAT at customs using their VAT registration number. This VAT can then be claimed as an input VAT deduction if the goods are for taxable business activities.
- VAT Paid to Norwegian Suppliers: If a business purchases goods or services from Norwegian suppliers and pays VAT on those invoices, it may also deduct this VAT, as long as the purchases support its taxable business operations.
Registration procedure
There are two ways to register for VAT: a simplified VOEC scheme for low-value goods (under NOK 3,000) or a registration in the Norwegian VAT Register. In both cases, the company must complete and submit the VAT registration forms on the Norwegian Tax Administration's website. After registering with VOEC the foreign company will need to charge VAT to the customer at the point of sale and mark its consignments with a VOEC identification number and relevant information to ensure correct customs clearance. VAT is not charged on VOEC goods at the border, because VAT is already charged on goods.Low-value goods
In Norway, items priced under NOK 3,000 (excluding VAT) qualify as low-value goods under the VOEC scheme. For these, foreign sellers collect VAT at the point of sale, avoiding customs VAT on arrival. However, if a parcel includes an item priced over NOK 3,000, it falls outside this scheme and requires customs clearance and VAT payment upon import. This system simplifies the process for low-value imports while ensuring proper tax collection on higher-value goods.Tax representative
In Norway, foreign businesses without a local establishment often need to appoint a tax representative to handle VAT compliance. The tax representative, typically a Norwegian resident or a locally registered business, assists with VAT registration, reporting, and communication with the Norwegian tax authorities. This requirement is particularly relevant for businesses with complex operations or those selling goods beyond the scope of the VOEC scheme, such as companies using local warehouses or dealing in excise goods. Companies established within the EU/EEA generally do not need a tax representative in Norway. Due to mutual agreements within the European Economic Area, businesses from these countries can manage VAT requirements independently without appointing a local representative.Filing VAT returns
Businesses are required to submit VAT returns and make VAT payments quarterly. The reporting periods align with the calendar quarters, starting on January 1, April 1, July 1, and October 1. The deadline for VAT payments is the 20th day following the end of each quarter. Additionally, the VOEC scheme also follows this quarterly reporting schedule. Companies can use the Lovat portal to keep track of important deadlines and ensure compliance with VAT regulations.Threshold
Foreign companies providing digital services to Norwegian consumers have a NOK 50,000 threshold. If their annual sales exceed this amount, they are required to register under the VOEC scheme (VAT on E-commerce). This allows for simplified VAT reporting and ensures VAT compliance on digital services, such as online streaming, software downloads, and e-learning content.E-services list
In Norway, the classification of digital services for VAT purposes is outlined clearly. E-services are defined as services delivered electronically, which can be accessed online or through a digital platform. These services are typically intangible and delivered over the internet.Types of E-Services:
- Music, video, and gaming streaming.
- Software, e-books, and applications.
- Educational and training programs delivered online.
- Services that provide storage space for websites.
- Online advertisements and marketing services.
Criteria for Digital Services:
- The service is provided over the internet or an electronic network.
- The service is not dependent on the physical delivery of goods.
- It is typically automated and provided without significant human intervention.
Registration procedure
To register for VAT, foreign companies must complete the VAT registration form available on the Norwegian Tax Administration's website. The form requires information about the business, the nature of the services provided, and estimated sales to Norwegian customers. Once registered, businesses will receive a VAT identification number.Reverse charge mechanism
When e-commerce sellers sell services to Norwegian businesses, a seller is not obligated to charge Norwegian VAT even if they have a VOES VAT number—it is the obligation of Norwegian business buyers to calculate VAT. Businesses should provide their organization number/business identification number, which has nine digits, starting with 8 or 9. If a Norwegian buyer cannot give you such a number, you must treat such a sale as B2C. In this case, the seller is obligated to charge the appropriate Norwegian VAT, as the buyer is considered a consumer and not a business.VAT payment and returns filing date
VAT must be declared every quarter and paid in Norwegian kroner. The deadline for declaring is 20 days after the end of the period.Penalties
In Norway, businesses are required to comply with VAT regulations, including accurate registration, timely submission of VAT returns, and proper payment of VAT owed. Failure to meet these obligations can result in significant penalties.Keeping records
Accounting records must be kept for at least five years after the end of the reporting year. Records must include various documents, such as invoices, receipts, bank statements, and contracts, as they support the financial transactions recorded in the company's accounts. This record-keeping is essential for ensuring compliance with tax regulations and facilitating audits by the Norwegian Tax Administration.
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