Norway has implemented a simplified registration, reporting, and payment system for foreign sellers and online marketplaces that sell low-value goods to Norwegian consumers. This scheme, known as VOEC (VAT On E-Commerce), allows qualifying businesses to register and account for Norwegian VAT without going through the standard VAT registration process. This article explains the key features of the VOEC scheme, who needs to register, and how the system works.
What is the VOEC Scheme?
The VOEC scheme is a simplified registration system established for foreign sellers and online marketplaces to register, declare, and pay VAT on business-to-consumer (B2C) supplies of low-value goods and remotely deliverable services to Norwegian consumers.
Key features of the scheme include:
It applies only to collection of VAT (not customs or excise duties)
The VAT liability on sales of low-value goods is shifted from the Norwegian consumer to the foreign supplier
Instead of consumers paying VAT at importation, suppliers collect Norwegian VAT at the point of sale
Goods under this scheme are subject to simplified customs procedures with no customs declaration
The scheme has similarities with the EU's IOSS (Import One-Stop Shop) scheme
Important 2024 Changes to the VOEC Scheme
Several significant amendments to the VOEC scheme came into effect on January 1, 2024:
Elimination of the temporary customs declaration exemption - The previous exemption for goods valued below NOK 350 has been abolished. All goods without a VOEC number will now be stopped at import for payment of VAT and duties.
Mandatory digital VOEC number - The VOEC number must be provided digitally to the transporter responsible for the border crossing, who must then present it digitally to Norwegian Customs. It is no longer acceptable to write the number physically on the package.
New portal solution - A new login portal and reporting system has been introduced, requiring creation of a new user account.
Who Needs to Register for VOEC?
Foreign businesses that sell goods and services to Norwegian consumers must register for VOEC when:
They sell low-value goods (valued at less than NOK 3,000) directly to Norwegian consumers
Their total turnover to Norwegian consumers exceeds NOK 50,000 during a 12-month period
They have no registered business address or residence in Norway
They only calculate and pay VAT on remotely deliverable services and low-value goods
Businesses with turnover below the NOK 50,000 threshold may voluntarily register if they wish to use the scheme.
What Qualifies as "Low-Value Goods"?
Under the VOEC scheme, low-value goods are defined as physical goods valued at less than NOK 3,000. Important points regarding this definition:
The threshold applies per item, not per consignment
The value at the "point of sale" is decisive
Additional costs such as shipping and insurance are excluded when determining if the value is within the threshold
Point of sale is when the customer accepts the total price and commits to payment
Any unbundling or separation of goods that are sold as one unit to avoid passing the value limit is prohibited
Goods Outside the VOEC Scheme
The following categories of goods are excluded from the VOEC scheme:
Foodstuffs - Any goods meant for human consumption, including nutritional and dietary supplements that are not medicinal drugs
Goods subject to excise duties - Including tobacco products and alcoholic beverages
Restricted or illegal goods according to Norwegian law
These goods are subject to the standard importation rules, including border collection of VAT, excise duties, and customs duties where applicable.
VAT Rates in Norway
The Norwegian VAT rate structure is:
25% – Standard VAT rate
15% – Foodstuffs
12% – Personal transport, letting of rooms in hotels, etc.
0% – Books, newspapers, etc. (including electronic books and audiobooks)
Who is Liable for VAT?
The VAT liability depends on the sales channel:
Direct sales: If a supplier sells goods through its own online store, the supplier must calculate and pay VAT on the supplies.
Sales through intermediaries: If the supply is facilitated through an intermediary (marketplace, platform, app, portal), the intermediary is generally regarded as the supplier for VAT purposes. This means online marketplace operators facilitating the distance sales of low-value goods to Norwegian consumers will be deemed to have supplied those goods themselves.
This provision is mandatory, meaning the underlying supplier and intermediary cannot choose who will be VAT liable for the supply.
An intermediary won't be regarded as the supplier if all of the following conditions are met:
The intermediary doesn't set the general terms under which the supply is made
The intermediary isn't involved in charging the customer
The intermediary isn't involved in ordering or delivery of the goods
Preventing Double Taxation
To avoid double taxation (VAT charged at point of sale and again at the border), suppliers must provide their VOEC number digitally to the transporter in the following manner:
For freight by postal service:
Provide the VOEC number via "electronic advance data" (M33/ITMATT V1) when booking from the local postal service
Enter the 7-digit VOEC number in the ITMATT field "sender.identification.reference"
For freight by other transporters (couriers, express delivery services):
Enter the VOEC number in the EDI message or via API as directed by the carrier when booking
The transporters must then make this information available to Norwegian Customs in their digital prenotification before presenting the goods at the border.
Reporting and Payment
VAT must be declared and paid quarterly, with a deadline 20 days after the end of each period:
Reporting period | VAT declaration and payment due by |
|---|---|
January to March | April 20 |
April to June | July 20 |
July to September | October 20 |
October to December | January 20 |
All reporting and payment must be done in Norwegian Kroner (NOK).
Record Keeping Requirements
Businesses registered under the VOEC scheme must keep transaction records for 5 years that include:
Description and quantity of goods supplied
Date of supply
Taxable amount and currency used
Any subsequent changes to taxable amount
VAT rate applied
Amount of VAT payable and currency conversion method
Payment details
Invoice information if issued
Information about dispatch and transport
Proof of possible returns
Unique consignment or transaction numbers
These records must be made available electronically within three weeks upon request by Norwegian tax authorities.
How to Register for VOEC
Registration is done through the Norwegian Tax Administration at www.skatteetaten.no/voec. After initial registration, the supplier is assigned a VOEC number that must be used in all declarations and shipping documentation.
The new portal solution introduced in 2024 provides a more user-friendly and efficient reporting system, allowing data sharing with up to five users in an organization and direct dialogue with tax authorities.
Conclusion
The VOEC scheme represents Norway's approach to efficiently collecting VAT on cross-border e-commerce while simplifying compliance for foreign businesses. By shifting VAT collection to the point of sale, the system reduces administrative burdens for both businesses and Norwegian customs authorities.
With the 2024 changes emphasizing digital transmission of VOEC information, it's more important than ever for foreign sellers and marketplaces to understand and comply with these requirements to avoid delays, extra fees, and double taxation of shipments to Norwegian customers.
