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Norway scraps low-value VAT import exemption

  • Dec 15, 2018 | Richard Asquith

Norway scraps low-value VAT import exemption

From January 2020, Norway is to remove the VAT and duties exemption for imported packages below NOK 350 to its consumers.

As a result, the importer will have to pay 25% Norwegian VAT and any duties for each package. The importer can be either the non-resident e-commerce business, potentially requiring a local VAT registration, or the Norwegian customer.

The import relief measure was initially introduced to limit the administration burden on the customs and tax authorities having to collect small amounts of VAT and duties. However, the high growth of cross-border e-commerce has meant the exemption has given non-resident e-commerce sellers an unfair tax advantage compared to Norwegian online retailers.

The European Union plans to remove its low-value consignment stock relief of up to €22.

Need help with your Norwegian VAT compliance?

Researching Norwegian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.