VOEC - VAT ON E-COMMERCE

VOEC - What you need to know:

VOEC stands for VAT ON E-COMMERCE and is a simplified scheme for VAT and customs designed for foreign webshops who wants to offer their products and services in Norway. The scheme specifically targets B2C e-commerce involving electronic services and goods with a sales value not exceeding NOK 3,000.00.

To apply for and maintain a VOEC registration, certain requirements must be met, such as:

• A unit/product/item must not exceed a sales value of NOK 3,000.00.
• VAT must be applied to everything, including fees, insurance, and shipping.
• Package contents, value, description, and quantity must be clearly stated on all shipments.
• VOEC registration number must be clearly displayed on all shipments.
• Mandatory reporting and payment of VAT to the Norwegian Tax Administration on a quarterly basis.
• Shipments must be delivered directly to the buyer.
• VOEC is only applicable to B2C trade.
  
  

If you meet these requirements, we recommend VOEC registration instead of a NUF or an AS as it is an easier and cheaper solution.
IntraVAT can assist with the registration process and ensure that you receive the correct setup tailored to your needs.

By choosing this scheme, you will have some advantages which are not possible with the other types of registrations, such as:

• Exemption from customs duties.
• Faster delivery time as no customs declaration is required.
• Buyers avoid taxes and fees upon receipt of the goods/service.
• Simplified tax settlement with Norwegian authorities.

How the VOEC registration works in practice:

1. A Norwegian resident customer purchases an item through a foreign website.
2. The webshop/service provider applies Norwegian VAT and receives payment.
3. The seller receives the order confirmation.
4. The seller/packager prepares the order.
5. The seller/packager arranges for package delivery and attaches labels containing information about the package's value, quantity, description, and the seller's VOEC number.
6. The seller's shipping company sends the package to Norway and notifies the Norwegian Customs before crossing the border.
7. Customs declaration occurs on the Norwegian side of the border, but no additional fees or taxes are incurred as VAT has already been paid.
8. The package is delivered directly to the buyer, concluding the transaction.

Does the VOEC registration sound like the perfect solution for your business model?
Then fill out the contact form and we will contact you with more information.