Norway simplified VAT registration for e-commerce 2020

Norway has proposed a simplified VAT registration process for online sellers with imports to consumers. The new option to report online selling will be implemented with the withdrawal of the NOK 3,000 low value consignment stock relief exemption on 1 January 2020.

The scraping of the VAT import exemption will be met with an obligation for sellers or facilitating marketplaces importing goods to Norwegian consumer to charge VAT at the point-of-sale to the consumer. This must then be declared and paid by the seller or marketplace above an annual sales threshold of NOK50,000 per annum.

The EU is proposing the same reforms on 1 January 2021. Australia introduced the same system in 2018.

To alleviate the new compliance burden, a new e-commerce simplified VAT registration nad return regime is being proposed. This will follow the existing Vat on Electronic Services system. This was introduced in 2016 when Norway made non-resident providers of e-services liable to collect and report VAT on sales of digital services to local consumers.