VOEC Norway
Norwegian Tax Authorities have broadened the VOEC scheme’s reach from January 1, 2023. In the past, the VOEC scheme primarily addressed low-value goods and digital services. Now, it extends to encompass all types of remotely deliverable services, such as legal and consulting services, thereby streamlining VAT compliance for overseas suppliers offering these services to Norwegian customers.
Stay informed with these crucial updates in the VOEC tax regime to ensure your business is complying with the latest Norwegian VAT rules
- Posted : 06/22/2023
- Reading Time : 11 min.
What is VOEC?
The Value-Added Tax On E-Commerce (VOEC) scheme is a regulatory mechanism implemented by the Norwegian Tax Administration. It is a simplified scheme to facilitate doing business in Norway, on a quarterly basis, and it has no possibility for deduction and it is only meant for B2C market. It was designed to streamline and ensure VAT collection from non-domestic e-commerce businesses selling low-value goods directly to consumers in Norway. But now expanded to remotely deliverable services services to consumers in Norway.
So previously Online Marketplaces: Sellers and online marketplaces are liable for VAT on cross-border sales of low-value goods to consumers (B2C) in Norway. This VOEC only applies to sales of goods with a value below NOK 3,000 . All others with sales to B2B or with items with a value above 3000 NOK should use the regular VAT registration
Who are the new ones that should register for VAT under the Norway VOEC regime?
- Digital service providers and online retailers are required to register under either the simplified VAT scheme (VOEC) or the standard VAT register once their total sales to Norwegian customers exceed NOK 50,000 within a 12-month period. From the outset, suppliers have the flexibility to join the simplified VAT system, offering a straightforward route to compliance. Here are some examples of sectors that could register under the VOEC regime : Streaming , films … , Linked in, Duolingo.
- Legal Services: From 1 January 2023, the VOEC scheme has been expanded to include all services capable of delivery from a remote location, such as legal services. This means that all foreign companies, who provide legal services to Norwegian consumers, must register under the VOEC scheme and calculate Norwegian VAT.
- Consulting Services: Similarly, consulting services that can be delivered remotely also fall under the VOEC scheme. Foreign companies offering consulting services to Norwegian consumers are required to register under this scheme
- Translation Services: Another service that falls under the VOEC scheme is translation services. Foreign companies providing translation services to Norwegian consumers must register under the VOEC scheme
Understanding VOEC Norway System VAT Rates
Although the VOEC system is a streamlined VAT scheme, it’s vital to note that the VAT rates remain consistent. Therefore, for services and must goods, approved under this scheme delivered to Norway, the standard VAT rate of 25 percent applies.
When do I have to register for VAT under the Norway VOEC regime?
E-service providers and retailers must enrol in either the simplified VAT scheme or the standard VAT register once their total sales to Norwegian recipients surpass NOK 50,000 within a 12-month period. From their initial sale, suppliers have the option to join the streamlined VAT system for hassle-free compliance.
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