Major changes are happening in Norway! We’ll cut right to the chase. The government of Norway is lifting VAT and customs fees on goods valued below 3,000 Norwegian Kroner (roughly $339 US). Norway’s government is currently in “Phase 1” of this process, which has eliminated customs and import fees for low-value foodstuffs and dietary supplements. “Phase 2” will take effect on April 1, 2020, which will eliminate customs fees on all other low-value goods. In addition, Norway has imposed a new payment structure for VAT (value added tax). Now, if online sellers sell a certain amount of goods to Norwegian customers, they will be responsible for making VAT payments to the Norwegian government.
Norway Previously Imposed VAT and Customs Fees On Goods Valued at $39 US and Higher
Prior to this year, Norway imposed VAT and customs fees on all goods valued above 350 Norwegian Kroner. For reference, 350 Kroner amounts to about $39 US. Now, that value threshold is much higher, and the VAT fees will now become shippers’ responsibility to pay.
In essence, this is a separate import fee that shippers are responsible for, and not Norwegian recipients. This setup is different from the majority of international shipping cases, where recipients are responsible for customs fees and not shippers.
The New VAT Process Will Affect Some eCommerce Stores With Norwegian Customers
Norwegian consumers aren’t the only ones impacted by these new processes. This new structure will also potentially impact online sellers all over the world—and not positively. Starting on April 1, the Norwegian government will require VAT payments from online sellers with annual sales of 50,000 Kroner or more to Norwegian consumers. That number amounts to roughly $5,600 US.
Under this new structure, companies that meet or exceed this monetary threshold will need to register with the Norwegian Tax Administration. Once registered, they will pay the collected VAT on a quarterly basis. Companies that register must also print their VOEC registration number on customs forms/shipping labels for packages heading into Norway.
If you are an online seller with Norwegian customers, we suggest doing some double-checking. If Norwegian customers purchase $5,600 or more from you in a year, you’ll be responsible for VAT payments. In this case, you’ll need to register your business with the Norwegian Tax Administration.
Need Some Help Figuring This Out?
If you’re an online seller and need some extra help with shipments to Norway, check out the links below. Norway Post has provided the following resources available for download:
- How to Sell Goods and Ship to Norway: A Guide
- Sell, Charge and Ship to Norway – Guidelines for Online Stores and Marketplaces
- Preferred Solution for Entering Customs Info
- Secondary Solution for Entering Customs Info
- Open Letter on Changes in Tax and Import Procedures
- Transitional Provisions in Norway
- Online businesses can request time to make technical adjustments on shipments to Norway during the transition period