New VAT regulations in Norway

Starting April 1st, 2020, Norway introduces new VAT regulations on inbound distance sales. The rules are very similar to those already in place in Australia and New Zealand.

Norway

Cross-border merchants selling consumer goods in Norway are affected by the new VAT regulation, reports Taxmen. Foreign merchants shipping consumer products to Norway for a yearly sales amount of at least NOK50,000 shall register for VAT. They can do this under a simplified system in Norway and report electronically (25%) VAT on sales of products with a value that does not exceed NOK 3,000.

An important aspect of the regulation is that you need to consider a 12 month period (in a row). Therefore, it is not necessarily a calendar year you take into account when registering for VAT in Norway.

The Norwegian tax authorities specify the way of declaration for multiple goods supplied. If a supply of goods consists of one or more goods valued above the NOK3,000 threshold, or one or more goods fall outside the VOEC scheme (e.g. foods or restricted goods), the consignment must be split into separate consignments. This in order to avoid the ordinary customs declaration of the low valued goods.

Australia

In 2019, new VAT regulations were installed in Australia. Merchants shipping consumer goods to Australia for a yearly sales amount of at least AUD75.000 need to register for VAT. They can do this under a simplified system in Australia and report electronically 10% VAT every quarter on sales of products with a value of no more than AUD1,000.

In case a parcel includes multiple items, leading to a value higher than AUD1,000, standard customs clearance may be available instead of online quarterly reporting.

New Zealand

In December 2019, new VAT regulations were installed in New Zealand as well. Foreign sellers must register for VAT in New Zealand if sales exceed NZ$60,000 in the trailing 12 months or will go over NZ$60,000 in the following 12 months.

These cross-border merchants can report and pay 15% VAT on goods with a value lower than NZ$1,000.