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Norway: VAT on cross-border sales; repeal VAT exemption for low-value goods

Norway: VAT on cross-border sales; repeal VAT exemption

The Ministry of Finance in June 2019 published a consultation paper concerning a proposal to repeal the exemption from value added tax (VAT) that applies for imports of “low-value goods” (currently those goods that have a value below NOK 350) and to introduce new measures providing that sellers and online marketplaces would be liable for VAT on cross-border sales of such low-value goods to consumers in Norway.

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The proposed measures would be effective 1 January 2020. Read the Ministry of Finance release [PDF 201 KB]

The Ministry of Finance has proposed the following:

  • Sales to Norwegian consumers (business-to-consumer or B2C sales) of low-value goods (except food) with a value below NOK 3,000 would require that suppliers of such goods register for VAT purposes and to pay VAT at a rate of 25%.
  • A simplified registration and reporting system would be established, similar to the one that is already in place for VAT on electronic services.
  • There would be no requirement to make customs declarations of imports of low-value goods (those having a value below NOK 350).
  • For goods subject to customs duties (except food), the proposal would increase the exemption amount requiring payment of customs duties, with the exemption threshold increasing from NOK 350 to NOK 3,000.
  • Imports of food and foodstuff requiring a customs declaration would be subject to VAT at a rate of 15% as well as to customs duties (not subject to any threshold).
  • There are no proposals with respect to other types of cross-border transfers of goods, such as transactions between businesses (business-to-business or B2B).

 

For more information, contact a KPMG tax professional in Norway:

Oddgeir Kjørsvik | +47 4063 9157 | Oddgeir.Kjorsvik@kpmg.no

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