Norway has one of the most advanced and actively enforced VAT regimes for cross border e commerce in Europe. Over the last few years, the Norwegian Tax Administration has expanded both the scope of VAT liability for foreign sellers and its ability to identify non compliance. For online platforms and foreign businesses selling goods or services to Norwegian consumers, VAT compliance should be considered an important aspect to take into consideration.
This article outlines the main VAT rules for B2C sales to Norway, explains the specific obligations for online platforms, highlights the risks of failing to register, and describes the tax authorities’ increased focus on controls and enforcement.
Overview of Norwegian VAT on cross-border B2C sales
Norway applies VAT based on the destination principle, meaning that VAT is due where consumption takes place. As a result, foreign suppliers making taxable B2C supplies to Norwegian consumers are generally required to charge Norwegian VAT, even if they have no physical presence in Norway.
The standard Norwegian VAT rate is 25%, with reduced rates applying to certain goods and services. For B2C transactions, the VAT obligation will as a main rule lie with the supplier.
How does a seller know if a sale is made B2C or B2B?
The Norwegian Tax Administration states that the VOEC scheme applies to sales to Norwegian consumers (private individuals) of goods valued below NOK 3,000 and remotely deliverable services. As such, the seller cannot not use VOEC for sales to businesses. There is no explicit VOEC rule that prescribes exactly how sellers must verify customer status.
However, the guidance from the Norwegian Tax Administration and the Norwegian Customs Authority point to a practical approach on obtaining enough information, such as billing and shipping details (is a company name used), does the customer have a Norwegian organization number (all businesses do), request confirmation if the purchase is made for business purposes etc (foundations and associations will have an organization number, but could have partial business activities).
The VOEC scheme – VAT on E Commerce
To facilitate compliance for foreign sellers, Norway introduced the VAT on E Commerce (VOEC) scheme. The VOEC scheme is designed to mirror the EU’s VAT e‑commerce framework.
However, being outside the EU means the EU OSS scheme allowing sellers to register in one EU Member State to declare and pay VAT on all intra‑EU B2C sales does not apply for similar sales to Norwegian consumers. As such, a similar system was created for Norway acting as a simplified registration, reporting and payment system for foreign businesses supplying:
• Low value goods (individual item value below NOK 3,000), and
• Remotely deliverable services (including digital and non electronic services delivered from abroad) to Norwegian consumers.
Key features of VOEC
• Registration threshold: NOK 50,000 turnover in Norway within a 12 month period
• Quarterly VAT reporting and payment
• VAT collected at the point of sale, not at import
• VAT liability shifted from the consumer to the foreign supplier
• Mandatory digital transmission of the VOEC number to customs and carriers
Since 1 January 2024, all low value imports of goods without a valid VOEC number are stopped at the border and subject to VAT and customs handling, making correct registration and reporting operationally critical for a free flow of goods.
Special VAT rules for online platforms and marketplaces
Norway was among the first countries to impose deemed supplier liability on online marketplaces. Under these rules, an online platform may be treated as the supplier for VAT purposes, even if the goods or services are technically sold by a third party.
When is a platform liable?
An online platform is generally responsible for charging and paying VAT if it:
• Facilitates the sale of low value goods to Norwegian consumers, or
• Controls key elements of the transaction, such as payment, ordering, or delivery terms
In these cases, the platform and not the underlying seller is responsible for VAT registration, VAT collection, and reporting under the VOEC scheme.
Based on our experience, a commonly seen argument from platforms against this liability is that they are not a party to the transaction and only collect a commission of the sales. At the very least, only the commission should be considered the VAT liable turnover.
VAT on services – expanded scope since 2023
Since 1 January 2023, Norwegian VAT applies to all remotely deliverable services supplied B2C from abroad, not just electronic services. This includes consulting, advisory, legal and other intangible services delivered remotely to Norwegian consumers.
Foreign service providers must therefore register under VOEC and charge Norwegian VAT unless a specific exemption applies. This change has significantly widened the compliance net and affected many service providers who previously assumed they were outside the scope of Norwegian VAT.
Risks of not registering for VAT in Norway
Failing to register for VAT or VOEC when required can have serious financial and legal consequences.
VAT assessments and penalties
The Norwegian Tax Administration may retrospectively assess:
• Unpaid VAT for up to several years
• Penalty tax of up to 20% of the unpaid VAT
• Statutory interest calculated from the original due date
In addition, customs authorities may block or delay shipments, causing commercial disruption and reputational damage.
Commercial and platform risks
For online platforms, non compliance can also lead to:
• Increased scrutiny of all facilitated sellers
• Removal from payment or logistics networks
• Contractual disputes with sellers and logistics providers
Use of payment data
Authorities now actively use payment data from card providers and payment intermediaries to identify foreign businesses selling to Norwegian consumers without VAT registration.
This allows the tax authorities to:
• Detect undeclared B2C sales
• Quantify historical VAT exposure
• Initiate targeted audits and assessments
Customs and digital reporting controls
Since 2024, the requirement for digital VOEC number transmission has enabled closer cooperation between customs and tax authorities. Shipments without a valid VOEC number are flagged and stopped, providing real time compliance enforcement at the border.
The authorities have publicly stated that control activity in the e commerce sector will continue to increase, particularly targeting large platforms and high volume sellers.
Summary
Norway’s VAT regime for B2C e commerce is no longer a niche or low enforcement area. For online platforms and foreign sellers, proactive VAT compliance is essential to avoid assessments, penalties and operational disruption.
Businesses selling to Norwegian consumers should regularly review their VAT position, platform structure and reporting processes to ensure full compliance with the Norwegian rules.
Overview of Norwegian VAT on cross-border B2C sales
Norway applies VAT based on the destination principle, meaning that VAT is due where consumption takes place. As a result, foreign suppliers making taxable B2C supplies to Norwegian consumers are generally required to charge Norwegian VAT, even if they have no physical presence in Norway.
The standard Norwegian VAT rate is 25%, with reduced rates applying to certain goods and services. For B2C transactions, the VAT obligation will as a main rule lie with the supplier.
How does a seller know if a sale is made B2C or B2B?
The Norwegian Tax Administration states that the VOEC scheme applies to sales to Norwegian consumers (private individuals) of goods valued below NOK 3,000 and remotely deliverable services. As such, the seller cannot not use VOEC for sales to businesses. There is no explicit VOEC rule that prescribes exactly how sellers must verify customer status.
However, the guidance from the Norwegian Tax Administration and the Norwegian Customs Authority point to a practical approach on obtaining enough information, such as billing and shipping details (is a company name used), does the customer have a Norwegian organization number (all businesses do), request confirmation if the purchase is made for business purposes etc (foundations and associations will have an organization number, but could have partial business activities).
The VOEC scheme – VAT on E Commerce
To facilitate compliance for foreign sellers, Norway introduced the VAT on E Commerce (VOEC) scheme. The VOEC scheme is designed to mirror the EU’s VAT e‑commerce framework.
However, being outside the EU means the EU OSS scheme allowing sellers to register in one EU Member State to declare and pay VAT on all intra‑EU B2C sales does not apply for similar sales to Norwegian consumers. As such, a similar system was created for Norway acting as a simplified registration, reporting and payment system for foreign businesses supplying:
• Low value goods (individual item value below NOK 3,000), and
• Remotely deliverable services (including digital and non electronic services delivered from abroad) to Norwegian consumers.
Key features of VOEC
• Registration threshold: NOK 50,000 turnover in Norway within a 12 month period
• Quarterly VAT reporting and payment
• VAT collected at the point of sale, not at import
• VAT liability shifted from the consumer to the foreign supplier
• Mandatory digital transmission of the VOEC number to customs and carriers
Since 1 January 2024, all low value imports of goods without a valid VOEC number are stopped at the border and subject to VAT and customs handling, making correct registration and reporting operationally critical for a free flow of goods.
Special VAT rules for online platforms and marketplaces
Norway was among the first countries to impose deemed supplier liability on online marketplaces. Under these rules, an online platform may be treated as the supplier for VAT purposes, even if the goods or services are technically sold by a third party.
When is a platform liable?
An online platform is generally responsible for charging and paying VAT if it:
• Facilitates the sale of low value goods to Norwegian consumers, or
• Controls key elements of the transaction, such as payment, ordering, or delivery terms
In these cases, the platform and not the underlying seller is responsible for VAT registration, VAT collection, and reporting under the VOEC scheme.
Based on our experience, a commonly seen argument from platforms against this liability is that they are not a party to the transaction and only collect a commission of the sales. At the very least, only the commission should be considered the VAT liable turnover.
VAT on services – expanded scope since 2023
Since 1 January 2023, Norwegian VAT applies to all remotely deliverable services supplied B2C from abroad, not just electronic services. This includes consulting, advisory, legal and other intangible services delivered remotely to Norwegian consumers.
Foreign service providers must therefore register under VOEC and charge Norwegian VAT unless a specific exemption applies. This change has significantly widened the compliance net and affected many service providers who previously assumed they were outside the scope of Norwegian VAT.
Risks of not registering for VAT in Norway
Failing to register for VAT or VOEC when required can have serious financial and legal consequences.
VAT assessments and penalties
The Norwegian Tax Administration may retrospectively assess:
• Unpaid VAT for up to several years
• Penalty tax of up to 20% of the unpaid VAT
• Statutory interest calculated from the original due date
In addition, customs authorities may block or delay shipments, causing commercial disruption and reputational damage.
Commercial and platform risks
For online platforms, non compliance can also lead to:
• Increased scrutiny of all facilitated sellers
• Removal from payment or logistics networks
• Contractual disputes with sellers and logistics providers
Use of payment data
Authorities now actively use payment data from card providers and payment intermediaries to identify foreign businesses selling to Norwegian consumers without VAT registration.
This allows the tax authorities to:
• Detect undeclared B2C sales
• Quantify historical VAT exposure
• Initiate targeted audits and assessments
Customs and digital reporting controls
Since 2024, the requirement for digital VOEC number transmission has enabled closer cooperation between customs and tax authorities. Shipments without a valid VOEC number are flagged and stopped, providing real time compliance enforcement at the border.
The authorities have publicly stated that control activity in the e commerce sector will continue to increase, particularly targeting large platforms and high volume sellers.
Summary
Norway’s VAT regime for B2C e commerce is no longer a niche or low enforcement area. For online platforms and foreign sellers, proactive VAT compliance is essential to avoid assessments, penalties and operational disruption.
Businesses selling to Norwegian consumers should regularly review their VAT position, platform structure and reporting processes to ensure full compliance with the Norwegian rules.