Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

May 26, 2022
2022-5516

Norway proposes changes to VAT rules on e-commerce

Extension of the scope of VAT to remotely delivered services

The Norwegian Ministry of Finance has proposed to extend the scope of services subject to Norwegian value-added tax (VAT) supplied by foreign service providers to cover the supply of intangible and remotely delivered services to Norwegian consumers (VAT on e-commerce or VOEC).

In the Ministry of Finance’s whitepaper, “consumers” will include not only private persons, but also all types of customers who are not considered as businesses or entrepreneurs (i.e., companies and organizations not considered as conducting business activities, such as pure or passive holding companies). The proposed regulations are likely to mean that a foreign service provider supplying remotely delivered advisory services (e.g., suppliers of transaction support services or legal services) to a Norwegian passive holding company will have to register for Norwegian VAT (using the simplified VAT registration scheme for e-commerce, VOEC) and charge 25 % Norwegian VAT. Thus, after the potential introduction of the new regulations, foreign suppliers will be required to keep track of the customers classification as business and consumer.

The proposal is currently subject to public consultation, ending in July 2022. It is expected that introduction of the proposed regulations will be in connection with the Government budget for 2023, with potential implementation from 1 January 2023.

Removal of the low-value goods exemption for VOEC

A temporary declaration exemption for the VOEC relating to goods with a value less than NOK350 (approximately €35) was introduced with the VOEC scheme in 2020. The Norwegian Government is now considering removing the exemption because it competitively disadvantages resident suppliers of goods. Therefore, the Government has announced a consultation notice regarding possible amendment of national VOEC legislation to make the import declaration process less burdensome for foreign suppliers, thus making the current exemption unnecessary.

The timing for the removal of the temporary declaration exemption has not yet been decided, but it is anticipated that it will be no later than 2023.

_________________________________________

For additional information with respect to this Alert, please contact the following:

EY Norway, Oslo

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more