VAT Expert in Europe

Selling in Europe with Incoterm DDP. Eurofiscalis handle your VAT registration & declarations | I want to learn more

VAT Expert in Europe

[obflink-button class="fa1" label=" Book a meeting" link="https://calendly.com/eurofiscalis-francophone" target="_blank" rel="noreferrer" display="not_home" text="#FFFFFF" background="transparent"]
[obflink-button class="fa4" label=" Contact us" link="https://www.eurofiscalis.com/en/contact/" target="_self" rel="noreferrer" display="not_home" text="#FFFFFF" background="transparent"]
VAT Expert in Europe

Selling in Europe with Incoterm DDP. Eurofiscalis handle your VAT registration & declarations | I want to learn more

Selling in Europe with Incoterm DDP.

Eurofiscalis handle your VAT registration & declarations

I want to learn more

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  

  

Last updated 11/17/2023

VAT blog
Table of Contents

Important changes from January 2024

The temporary customs declaration exemption will be abolished from 1 January 2024

 

Starting on January 1, 2024, an important change is coming to Norway’s customs regulations. The temporary customs declaration exemption, which previously applied to consignments valued below NOK 350, will no longer be in effect. This exemption was initially introduced as a transitional measure alongside the implementation of the VOEC (Value-Added Tax on E-commerce) scheme in April 2020.  

 

This change means that once the temporary declaration exemption is abolished, all incoming goods without a valid VOEC number will be subject to duties from the very first Norwegian Krone (NOK). It’s crucial for businesses and individuals involved in international trade to be aware of this upcoming shift in customs regulations to avoid any unexpected costs or delays when importing goods into Norway. 

By being prepared for these changes and ensuring compliance with the new rules, you can navigate the evolving customs landscape effectively and minimize any potential disruptions to your import operations. Stay informed and take the necessary steps to adapt to these regulatory updates for a smoother import process in Norway. 

 

For companies that are looking into exporting their products to Norway, gaining a deep understanding of the Norwegian import process is of utmost importance.

From 1st of January 2024, you must provide the VOEC number digitally 

To ensure a smooth and compliant process for transporting goods under the VOEC (Value-Added Tax on E-commerce) scheme, it is crucial to follow these steps: 

  • Share Your Unique VOEC Number Digitally: You are required to provide your unique VOEC number digitally to the entity responsible for transporting your goods. This step is pivotal in the process. 
  • Transporter’s Obligation: The transporter, upon receiving your VOEC number, is obligated to digitally transmit this number to Norwegian Customs. This digital transmission ensures proper documentation and compliance with customs regulations. 
  • Provide Comprehensive Information: Alongside your VOEC number, it is essential to furnish detailed information about the contents of the consignment. This information should include the value of the goods, a comprehensive description of the items, and the quantity of goods being transported. 

By adhering to these guidelines, you can avoid potential complications such as delays, additional fees imposed by the transporter, and the risk of customers being charged value-added tax (VAT) a second time when the goods cross the border. Ensuring the seamless exchange of information and compliance with VOEC requirements is essential for a hassle-free and cost-effective international trade experience. 

Managing double taxation 

Starting from January 1, 2024, when the obligation to provide the VOEC (Value-Added Tax on E-commerce) number digitally becomes effective, it’s crucial to understand the implications of not correctly specifying this number. Failure to do so carries the risk of double taxation, a situation where Norwegian customers may be required to pay VAT a second time when their purchased goods cross the border into Norway, unless the VOEC number is correctly and digitally provided as previously outlined. 

 

Addressing and rectifying double taxation falls under the responsibility of VOEC-registered companies. It’s essential to highlight that this correction process primarily concerns the relationship between you, as a VOEC-registered business, and your Norwegian customers. 

To correct this issue, the following steps are necessary: 

  • Reimbursement to Customers: You must reimburse the affected customers for the VAT they paid on the specific sale in question. This reimbursement is a prerequisite for initiating the correction process. 
  • Documentation of VAT Refund: You should maintain documented evidence of the VAT refund made to the customer. 
  • Adjust VOEC Return: Next, you need to amend your VOEC return to account for the reduced VAT amount corresponding to the refunded VAT. 
  • Obtain Customer Documentation: It’s essential to acquire documentation from the customer indicating that value-added tax has indeed been paid a second time upon the goods’ border crossing. 

 

By following these steps diligently, you can correct instances of double taxation, maintain a positive relationship with your Norwegian customers, and ensure compliance with VOEC regulations. This proactive approach is essential in safeguarding your business interests and preserving customer trust in your operations. 

If you are not already VOEC-registered, please do not hesitate to contact us so that we can help you! 

Book a meeting

Seeking assistance with VOEC?

To achieve a deeper understanding of VOEC we invite you to continue reading this article. 

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?

  1. 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 , LinkedIn, Duolingo.
  2. 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.
  3. 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  
  4. 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.   

 

Picture a partner who stands by you, a partner who knows European fiscal law like the back of their hand – that’s us, Eurofiscalis. We’ve been the cornerstone of success for countless businesses across Europe. If you feel burdened by complex fiscal laws, or wish to devote your time to business growth, we’re your answer. Let us transform your administrative challenges into triumphs! 

 

Why use our Service to be your tax representative / tax agent?

Eurofiscalis is an international tax company specialising in tax representation. Our experts (statutory auditors, accountants, lawyers) speak many languages and will take care of all tax obligations on behalf of your company. European tax law and related aspects are a critical issue in a company’s development on the international arena, which is why we establish long-term relations based on trust.