Norway announces various VAT changes which will affect many businesses.
Zero VAT rate applied to ebooks, magazines and journals.
From 1 July 2019 Norway removed VAT from electronic books, magazines and journals.
This zero rate also applies to electronic books and publications that contain sound, moving pictures and other functionality, but predominantly comprise of text and images. Streaming and downloading audio books will also be covered by the exemption.
With the zero VAT rate, this means there is now an equal tax-related treatment of printed and electronic media.
Removal of VAT and duties exemptions for imported packages below NOK 350.
Starting from January 2020, Norway plans to remove VAT and duties exemption for imported packages below NOK 350 to its consumers.
This will result in the importer being liable to pay 25% Norwegian VAT and any duties on every package.
The importer can be either the non-resident e-commerce business, (requiring a local VAT registration) or the Norwegian customer – depending on the structure of the business arrangement.
A simplified system will be put in place for sellers and online marketplaces to register, declare and pay VAT on business-to-consumer (B2C) supplies of low value goods.
The system will be implemented as an extension of the existing VOES-system (simplified scheme for VAT on cross border B2C sales of electronic services).
Mandatory SAF-T Reporting
From the 1st January 2020, all companies that keep electronic accounts in Norway will be required to use the SAF-T to report their tax transactional data to the tax authorities. As a result, non-residents will also be impacted.