Norway Proposing to Change Customs Process for Low-Value Imports

Norway is proposing to amend regulations to simplify customs clearances and the country’s value-added tax system for low-value shipments, according to an Aug. 19 KPMG report. The proposal would repeal VAT exemptions and other “indirect taxes” on imports worth less than about $350. New legislation would leave sellers and “online marketplaces … liable for VAT on cross-border sales of low-value goods to final consumers in Norway,” KPMG said. Online sellers would “register, declare, and pay VAT” on the sales under the new system, KPMG said, which would take effect Jan. 1, 2020.

Norway said the new system will simplify the customs process and not be “burdensome” for employers, but KPMG said “observers in Norway are not entirely sure about that viewpoint.” KPMG said “the obligation to register requires that the tax authorities have a good overview of all foreign suppliers” and that taxpayers might be subject to sanctions “when there is a breach” of particular aspects of the new system.