Amendments to the Norwegian VAT act regarding cross-border sales of services from businesses to consumers (B2C)


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From 1 January 2023, supplies of all intangible services, not explicitly exempt according to the Norwegian VAT legislation, from businesses located outside of Norway to non-business customers located in Norway (B2C) will be subject to Norwegian VAT. This ultimately means that all purchases of such services to Norway will be subject to VAT, regardless of the status of the customer and whether the service is electronic or not.

Remotely deliverable services, also referred to as services capable of delivery from a remote location, are services that in principle can be provided anywhere. These services are, by their nature, difficult to associate with a physical location. Examples are consultant services, legal services, accounting services and other services that can be supplied digitally (electronic services).

According to the Norwegian VAT Act, businesses and public authorities located in Norway must pay VAT on all purchases of remotely deliverable services from businesses located abroad. However, consumers located in Norway must only pay VAT on such purchases if the service is electronic. This means that foreign suppliers of remotely deliverable services which are not electronic, until 1 January 2023 have had a competitive advantage compared to suppliers located in Norway, since the consumers must pay VAT on domestic purchases of both electronic and non-electronic services (unless the service is exempt from VAT).

When the customer is a consumer (B2C-sales), it shall be the responsibility of the supplier to charge and collect VAT. Verifying the status of your customer, foreign suppliers will be required to keep track of the customers' classification as business or consumer. Suppliers not established in Norway may use the simplified VAT scheme for registration and reporting (VOEC). This scheme is already used by suppliers which sell electronic services or low value imported goods to consumers in Norway. When the customer is a business or a public authority (B2B-sales), the VAT will still be charged and collected by the customer (reverse charge).

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