Norway Proposes Elimination of VAT Exemption for Certain Imports

Norway’s Ministry of Finance proposed the elimination of value-added tax exemptions on imports of “low value goods,” Norway said in a notice. Among several changes, the ministry plans to impose a 25 percent VAT on foreign sellers and “online marketplaces” for all goods, except food, valued under about $350, KPMG said in a July 3 report. The proposal would also create a “simplified system” for foreign sellers to register, declare and pay VATs on their exports to Norway, the ministry said. If implemented, the changes would take effect Jan. 1, 2020.

The changes would “increase the exemption amount requiring payment of customs duties” from $40 to $350 (US dollars), KPMG said. There would be “no requirement” to declare imports of goods less than about $40, the KPMG report said. Food products, however, would not be subject to any threshold. Food imports that require a customs declaration would be subject to a 15 percent VAT rate and customs duties, KPMG said.