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.
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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.