Import to Norway—VAT and customs rules for foreign businesses

Whether your company owes Norwegian VAT on a delivery to Norway depends on one key distinction: is this a sale to Norway, or a sale in Norway? Norway is not an EU member, but is part of the European Economic Area (EEA) — which means transactions of goods across Norwegian borders, including to and from the EU, are treated as imports or exports. A sale to Norway is treated as an export sale and normally creates no VAT obligation for the foreign seller. A sale in Norway is a domestic supply and triggers a registration obligation once turnover exceeds NOK 50,000 over a 12-month period.

Below, we walk through what determines this distinction, how assembly and installation contracts can change the picture, and how to calculate customs value correctly.

Is your delivery a sale to Norway, or a sale in Norway?

This is the first and most important question to answer when planning a delivery of goods to Norway.

A sale to Norway is regarded as an export sale from abroad and should not trigger any particular VAT liabilities for the foreign seller. The importer of the goods is responsible for clearing the goods through customs and paying the VAT on the value of the goods. When the Norwegian buyer is the importer, the sale should not trigger any obligation for the foreign seller to register for VAT or pay VAT or tax in Norway.

A sale in Norway (a domestic supply) usually occurs if the goods are delivered to the buyer's premises, and will trigger an obligation to register for VAT once turnover exceeds NOK 50,000 over a 12-month period.

Note on low-value goods to consumers: Since 1 April 2020, sellers and online marketplaces must calculate and collect VAT on sales of goods valued below NOK 3,000 to consumers, under the VAT on E-Commerce (VOEC) scheme.

Read further here: VAT on e-commerce (VOEC) in Norway

Who is the importer of record, and why does it matter?

A sale usually occurs in Norway if the goods are delivered to the buyer’s premises. Please note that whoever is declared as the recipient upon importing goods will be the customs debtor. This applies regardless of who actually owns or will receive the goods. The information on invoices and other supporting documentation is of no legal significance.

If the sale will be regarded as a domestic transaction, the correct entity must be stated as the importer of record. This ensures that the formal requirements to deduct the import VAT levied on the value of the goods are in place.

Also read: 6 tips for businesses: How to get a VAT refund in Norway

Do contracts with assembly or installation change the VAT treatment?

Yes, often. Foreign enterprises should be aware that contracts with elements of assembly or installation often impact the VAT handling of the goods.

A typical example would be a delivery of goods to Norway, where the customer is the importer of record. Still, the seller will physically assemble or install the products on-site. In this case, the assembly/installation services and the goods would normally be VAT-liable for domestic transactions in Norway.

In Norway, the sale of goods and services is regarded as a sale. For foreign businesses, this triggers both registration and reporting responsibilities in Norway. In theory, this could be avoided by splitting the contracts into separate deliveries: one for delivery of goods and one for assembly or installation. However, this is rather unpractical and often commercially undesirable. 

Please also note that these services will also be VAT liable in Norway for contracts containing elements such as maintenance and upgrades as a follow-up obligation. 

Is there an exemption for remotely deliverable services?

Yes. An important exemption is services capable of remote delivery. For example: This could be auxiliary services such as installation, and software test runs in connection with the delivery of the goods. If these services could have been delivered remotely, e.g. from the seller’s offices outside Norway, the seller is normally not obligated to register for VAT. 

Also read:  Should your business register for VAT in Norway? 

How do you calculate the customs value?

Being the importer of records also means being responsible for calculating customs values. 

The customs value is the amount paid or payable for goods abroad, including the cost of their transportation to Norway, insurance, packaging costs, and similar expenses. Royalties and agent commissions should be added to the customs value. 

 Use the calculator below to estimate your customs value. Enter your own figures for each cost element — make sure all values use the same currency. 

Planning an import to Norway? Here's our VAT advice

We stress the importance of planning ahead for any delivery of goods to Norway. Due to the stringent documentation requirements from the Norwegian tax authorities, we have seen numerous examples of businesses losing VAT deductions because goods were cleared through customs under the wrong entity, or because documentation of the sale in Norway was missing.

If you are unsure how to handle VAT and customs when importing goods to Norway, do not hesitate to contact us for expert advice