Norway VAT Compliance for Non-Resident Digital Platforms: Rules & Reporting

Norway was one of the countries that paved the way for the current regulatory landscape regarding VAT compliance for digital platforms in general, as well as for non-resident businesses operating in multiple jurisdictions. 

The Norwegian government was among the first to implement specific measures to ensure that non-resident digital platforms contribute their fair share of taxes, including VAT. Moreover, Norway was one of the first countries to implement a simplified VAT reporting regime for B2C transactions regarding digital services provided by foreign vendors.

A Brief Overview of Norway’s Digital VAT Framework

In 2011, Norway introduced VAT rules for non-resident vendors, including digital platforms, that provide digital services to consumers in Norway, specifically for business-to-consumer (B2C) transactions. These rules require them to register for, collect, and pay the due VAT if their turnover exceeds the registration threshold. The VAT registration threshold for non-resident digital platforms was set at NOK 50,000 over 12 months. 

Following the success of introducing the simplified regime for VAT on cross-border B2C sales of digital services, known as VOES, and acting upon the OECD 2016 guideline and the EU's proposal to expand the EU MOSS, in 2020, the Norwegian government extended the VOES system. The expansion resulted in the creation of a VAT on e-commerce (VOEC), a simplified VAT registration and reporting system for foreign suppliers of low-value goods.

Implemented rules applied to foreign sellers, including digital platforms, of low-valued goods, valued at NOK 3,000 or less, to consumers in Norway. Moreover, under the so-called VAT on Small Consignments (VOSC) rules, online marketplaces became liable as deemed suppliers for sales made by online sellers through those marketplaces. 

Additionally, since 2020, digital platforms that provide real estate leasing services have been required to report information about the lessor to the Norwegian Tax Authority. Furthermore, in 2022, the Norwegian Tax Authority stated that the transfer of digital works of art is a digital service subject to VAT, adding that VAT exemption only applies to tangible art.

General Rules for Non-Resident Digital Platforms

Foreign taxable persons, including digital platforms, must register for VAT if their sales exceed the NOK 50,000 (around EUR 4.200) registration threshold over a 12-month period. Both taxable persons who sell low-value goods and remotely deliverable services to Norwegian consumers may use a simplified scheme for VAT registration and reporting.

Regarding the low-value goods, only those valued below NOK 3,000 per item, not per consignment, can be reported under the simplified VAT regime. For determining the value of items, non-resident sellers or online marketplaces must convert the value into NOK using an exchange rate published by Norwegian Customs, Norges Bank, or a foreign central bank at the point of sale. Shipping and other extra costs should not be included in the item's value. However, all additional costs should be included when calculating the VAT due on the sale of the item.

Nevertheless, there are certain types of goods exempt from the VOEC regime, including foodstuffs, goods subject to excise duties, and goods restricted by national legislation. 

Non-resident suppliers of remotely deliverable services and electronic services can also register for and report VAT using the VOEC simplified regime. Examples of digital services include the provision and hosting of websites, remote maintenance of software and hardware, the provision of software, and its updating. Other examples include access to or purchase of images, information, and databases, as well as streaming and downloading services for content such as music, movies, or games.

How to Comply: VAT Registration, Reporting, and Payment

Non-resident or foreign digital platforms that do not have a place of business in Norway must appoint a representative to complete the VAT registration process. The exemption to these rules is provided for companies established in the United Kingdom and EEA countries.

Once the application form is submitted, it typically takes approximately three weeks for the Tax Authority to respond. Once the registration process is complete, digital platforms must begin issuing invoices with VAT, typically applying a standard VAT rate of 25%.

In addition to charging VAT, non-resident taxable persons must report and pay collected VAT every quarter by the 20th of the month after the end of the reporting period. 

Finally, registered VAT taxable persons must retain all relevant documents, including customer details, transaction dates, amounts, and VAT collected, for five years following the end of each fiscal year. Additionally, they must make them available to Norwegian authorities upon request.

Ongoing Regulatory Developments For Digital Platforms

Recently, the Norwegian government announced the Cabinet’s approval of a recommendation from the Ministry of Finance to introduce new reporting requirements for digital platforms, aligning with the OECD Model Rules for Reporting by Platform Operators and the EU's DAC7 Regulation. The rules apply to both resident and non-resident digital platforms.

From January 1, 2026, platform operators will be required to collect and verify seller information, including Tax Identification numbers and VAT numbers, and notify platform sellers of their reporting obligations.  The first reporting to the Tax Authority and exchange of information with other countries is scheduled for 2027. Platforms subject to these reporting rules include those that facilitate the rental of immovable property, transportation, the sale of goods, and the provision of personal services.

With the implementation of reporting and data sharing requirements for digital platforms, Norway is joining other countries, including Canada, Australia, New Zealand, Switzerland, Costa Rica, Chile, and the UK.

Conclusion

Norway demonstrated a proactive approach to VAT compliance for non-resident digital platforms, reflecting its commitment to adapting tax regulations to the evolving digital economy. By introducing and updating special regimes such as VOES and VOEC, Norway established a system that simplifies VAT registration and reporting for foreign digital platforms.

The proposed and announced forthcoming reporting obligations, set to commence in 2026, align with OECD and EU standards, further highlighting Norway's commitment to transparency and international cooperation in tax matters.

Source: Amendments to the Tax Administration Act and the Tax Payment Act, The Norwegian Tax Administration - VAT On E-Commerce - VOEC, The Norwegian Tax Administration - Register, change or delete in the Value Added Tax Register, Deloitte, The Norwegian Tax Administration - VAT exemption for electronic news, Value Added Tax Act (VAT Act)