Shipping items to Norway
Ecommerce businesses that ship to customers within the EU need to comply with VAT rules. These rules apply to all member states. But what happens when shipping to a state that’s not a member?
VAT rules in the EU
As from July 1st 2021, the EU introduced new rules on VAT that apply to all member states. Sellers can now file a single VAT return in the online platform known as the One Stop Shop (OSS). This way, businesses do not require an individual tax registration for each of the countries they’ve sold goods to. The seller should still take note the total amounts of VAT they charged in the different countries, and fill this out in the portal. After that, the OSS transfers that data to the local authorities in those EU countries.
According to the VAT rules applicable up until July 2021, no import VAT had to be paid for commercial goods of a value up to 22 euros. After that date, all commercial goods imported into the EU from a third country or third territory is subject to VAT, irrespective of their value.
Shipping to Norway
Countries that are not a member of the EU have their own system. Norway, for example, has a system called VOEC (VAT on Electronic Commerce). The purpose is to simplify customs procedures, with no customs declaration. The main element of the system is that foreign sellers with a total turnover in Norway exceeding 50.000 Norwegian Krones during a 12 months period, will be liable to pay Norwegian VAT when selling low value goods, valued at less than 3.000 Norwegian Krones, to consumers in Norway. If a seller is sending goods with a value above that limit, no VOEC registration is possible, all items exceeding that value will be customs cleared into Norway.
‘Some ecommerce businesses look for a partner to take care of customs and duties.’
It can be a hassle to figure out VAT rules in order to start cross-border selling. Some ecommerce businesses look for a partner who will take care of customs and duties for them. Direct Link are the leaders in Nordic parcel services and is fully owned by PostNord – which also serves as the customs & duties processor for the Nordics. This makes processing times quicker and more accurate. For sellers looking for a partner to manage their Nordic deliveries, Direct Link is a suitable option.