Changes to Norway VAT on Shipping Services
Value Added Tax Updates for Norwegian Shoppers
As of 1 April 2020, a 25% Value Added Tax (VAT) will be charged on shipments of low-value items to Norway. New measures to enforce this tax have been implemented, which means MyUS will now collect this VAT at the time of shipping, on behalf of the Norwegian government.
When Norway’s VAT Applies for Collection by MyUS
Norway’s VAT will be collected by MyUS only on the shipment of low-value items, based on the value of each individual item in a shipment. The Norwegian government defines a low-value item as one worth 3,000 NOK or less ($294 US as of 13 May 2020). If you are shipping an item valued at more than 3,000 NOK, VAT will be collected directly by the Norwegian government upon arrival in Norway.
The new VAT measures only apply to consumer shipments. Business shipments are exempt from VAT collection by MyUS. If you are a business, you must provide the necessary information for VAT exemption on your account and shipments. More information on VOEC here: https://www.skatteetaten.no/en/business-and-organisation/vat-and-duties/vat/foreign/e-commerce-voec/
How VAT Cost is Determined
While the determination of whether or not VAT applies to an item is based on the value of the individual items being shipped, the actual VAT cost is calculated based on the total shipment value. This means you are taxed 25% on the value of what you ship, as well as on the cost of shipping services, including insurance, if selected.
For example, if you purchase a blanket from the US for $100 USD (1,017 NOK) with shipping for $15 USD (153 NOK), you would pay 25% VAT on the total cost of the blanket and shipping, USD $29 (295 NOK). This would make your total cost to purchase and ship the blanket:
$100 (1,017 NOK) + $15 (153 NOK) + $29 (295 NOK) = $144 USD (1,465 NOK).
Exceptions to When MyUS will collect VAT on shipments to Norway
Because VAT is based on each item’s value, several special scenarios for VAT collection apply when you are shipping more than one item, or exempt items:
When shipping an exempt item (such as alcohol, antiques, food, medicines, seeds, and tobacco), regardless of value, MyUS will not collect VAT at the time of shipment.
If a single shipment contains both items that are valued at less than 3,000 NOK and items valued greater than 3,000 NOK, MyUS will not collect VAT at the time of shipment.
If a single shipment contains items valued at less than 3,000 NOK, as well as any items exempt from VAT collection by MyUS at the time of shipping (such as alcohol, antiques, food, medicines, seeds, and tobacco), MyUS will not collect VAT, regardless of item values.
Items MyUS does not collect VAT for at the time of shipment may require border clearance upon arrival in Norway. VAT and other governmental fees may also apply to your shipments, which you would be responsible for paying upon arrival in Norway.
How Norway’s VAT applies to MyUS shipments:
View the chart below to see how VAT collection by MyUS may apply to different items and shipments being exported to Norway:
If your shipment includes any items with values greater than 3000 NOK or an exempt item, we will not collect VAT because these shipments will need to go through formal border clearance.
What These Taxes Mean for You
MyUS will be collecting VAT prior to shipping in order to streamline the payment process for our members and provide greater transparency in cost. We will not collect VAT on shipments that contain items valued at more than 3,000 NOK, even if they also contain items valued at under 3,000 NOK, or containing items that are exempt, because these shipments will require formal border clearance.
Please note: While MyUS will be collecting VAT on item values less than 3000 NOK to Norway, other governmental fees may apply to your shipments, including additional VAT on those governmental fees. Those fees will not be collected by MyUS, but if they apply, you will be responsible for paying them upon arrival in Norway.