What is a VOEC Number?
A VOEC number is a unique identifier required for foreign businesses selling goods and services to consumers in Norway. It was introduced by the Norwegian government to simplify VAT collection on low-value imports, such as e-commerce sales, and digital services purchased by Norwegian consumers. By registering for a VOEC number, foreign businesses can charge VAT at the point of sale, making the process easier and more transparent for Norwegian consumers who would otherwise face VAT charges at the border.
The VOEC system, which stands for VAT on E-Commerce, helps streamline the tax collection process and eliminates customs processing for low-value goods under 3,000 NOK, benefiting both businesses and consumers by avoiding additional delays and fees.
What Does VOEC Stand For?
VOEC stands for VAT on E-Commerce. It’s a tax collection system initiated by the Norwegian government to capture VAT on goods and digital services sold to Norwegian consumers by foreign companies. The VOEC system applies to:
- Physical Goods: Low-value goods under 3,000 NOK are subject to VOEC, so sellers add VAT at the time of purchase, bypassing the need for customs processing.
- Digital Services: Non-resident businesses providing digital services, such as streaming, software, and online gaming, are also required to register under the VOEC system if their annual sales to Norwegian consumers exceed a threshold of 50,000 NOK.
The purpose of the VOEC system is to ensure that Norway can collect VAT efficiently from cross-border e-commerce transactions, leveling the playing field for Norwegian businesses and simplifying the purchasing process for consumers.
VOEC in Norway
In Norway, the VOEC system primarily affects foreign sellers of goods under 3,000 NOK and digital services. Previously, low-value imports were exempt from VAT, creating a competitive disadvantage for Norwegian businesses. However, under VOEC, VAT is charged at the point of sale, so Norwegian consumers see the full cost upfront, and foreign businesses remit the collected VAT directly to Norway.
The Norwegian Tax Administration oversees VOEC registrations and compliance. For businesses, the VOEC system reduces customs delays and processing fees since the goods are pre-cleared with VAT already collected. Consumers benefit as well, as they no longer face surprise VAT charges or lengthy customs delays on low-value imported goods.
VOEC Registration
To participate in the VOEC system, foreign businesses need to register with the Norwegian Tax Administration to obtain a VOEC number. Here’s how the registration process works:
- Determine Eligibility: Foreign businesses selling low-value goods (under 3,000 NOK) or digital services to Norwegian consumers need a VOEC number if they meet the minimum sales threshold (50,000 NOK annually for digital services).
- Apply for a VOEC Number: Businesses register directly on the Norwegian Tax Administration’s website, where they provide details about their business operations and expected sales to Norway.
- Charge VAT at Point of Sale: Once registered, businesses are required to charge Norwegian VAT (currently 25%) on all applicable sales to consumers in Norway. The VAT is then reported and remitted to Norwegian tax authorities.
- Simplified Customs Clearance: Goods sold under the VOEC system are pre-cleared for customs, meaning they are exempt from additional customs duties or fees upon arrival in Norway, as long as they meet the low-value threshold.
For businesses selling to Norway, the VOEC registration process offers an efficient way to comply with Norwegian VAT requirements, streamlining both compliance and customer satisfaction.
How to add VOEC number in Packrooster Shipping
When you have your VOEC number you can add it to Packrooster Shippings shipping location data so it will be automatically used when needed. Open Packrooster and go to general settings. There you can find your shipping locations that comes from your Shopify shipping locations. Press the edit button next to your shipping location. There you can find a field for VOEC number. Fill the field and you are good to go. Packrooster Shipping will automatically use your VOEC number when needed for shipping.
Don't have Packrooster Shipping yet in your Shopify store? You can install Packrooster Shipping from here.
