Businesses face new VAT rules on E-commerce

Following the OECD and the European Union (EU), Norway has adopted changes to its e-commerce Value Added Tax (VAT) rules effective 1 July 2011.

The changes will impact all businesses selling electronic services over the Internet (such as music, software, games and entertainment) to Norwegian private individuals. Up till 1 July 2011 such supplies are VAT free. From that date foreign businesses must collect the VAT at 25%.

There will be various compliance options available for businesses. The various options have different consequences and the preferred option should be carefully considered and selected.

Grette has, as the only law or tax advisory firm in Norway, practical experience with the similar EU rules. We also have in our team individuals with experience from the European Commission and the OECD Secretariat.

Feel free to contact us should you wish to discuss (i) when action should be taken and (ii) what type of action that is best for your business.

Contact: Nils Eriksen or Jørgen B. Grønlie