In early 2022, Discogs will start collecting Norwegian supply of goods value added tax (VAT) on items imported into Norway and electronic service fee VAT on the fees Norwegian resident sellers pay to use the Discogs platform. Below is an overview of each type of VAT, who is affected, how the VAT amount is calculated, when and how the tax is collected, and any action you need to take as a buyer or seller on Discogs.
We’ll have more details to share as we get closer to the end of the year. In the meantime, here’s what we know about Norway VAT and what it means for you.
Electronic Service Fee VAT
Electronic service fee VAT is assessed on Discogs’ sales fee and is paid by sellers based in Norway on domestic and international orders.
Who is impacted by Norway’s electronic service fee VAT?
All sellers in Norway.
How is electronic service fee VAT calculated?
The Norway VAT rate on electronic service fees is 25%. Discogs charges sellers on our platform a sales or electronic service fee of 8% of the listing price of an item. For example, if the listing price of an item is NOK 100,00 the sales or electronic service fee would be NOK 8,00 and the VAT on the electronic service fee would be NOK 2,00 (25% of NOK 8,00).
When and how is electronic service fee VAT collected?
- Norwegian sellers who are not VAT registered, electronic service fee VAT will be levied on all Discogs sales fees and added to your monthly Discogs invoice.
- Norwegian sellers who are VAT registered with a valid VAT ID provided in your Seller Settings, electronic service fee VAT will not be levied or collected by Discogs. VAT registered sellers will report and pay their own electronic service fee VAT as appropriate to their individual situation. Please seek advice from your Norwegian tax professional if you have any questions.
As a seller, what do I need to do?
If you’re a VAT registered Norway resident seller, please enter your Norway VAT ID in your Seller Settings. This is important to ensure the correct entity is charging, collecting, and remitting VAT; you as a seller or Discogs. VAT IDs are validated on a daily basis and you will be notified to provide a new VAT ID should your VAT ID become invalid.
Supply of Goods VAT
Norway’s supply of goods VAT is an import tax, similar to the newly introduced UK and EU supply of goods VAT schemes. Norwegian buyers are required to pay supply of goods VAT when purchasing items from sellers located outside Norway that are below the Norway NOK 3,000 low-value goods VAT threshold.
Who is impacted by Norway’s supply of goods VAT?
Sellers outside of Norway shipping goods sold on Discogs to buyers located in Norway.
Buyers in Norway receiving a shipment from Discogs sellers who are located outside of Norway
How is Norway’s supply of goods VAT calculated?
First, Discogs must determine whether the individual items in an order are below the Norway low-value goods threshold of NOK 3,000. If the individual items in an order are below the threshold, Discogs is required to charge and collect Norway VAT on the entire order value which is the total of the item amount plus the shipping amount. If the individual items in an order are greater than or equal to the NOK 3,000 low-value goods threshold, Discogs is not responsible for VAT and the buyer will pay any VAT due on the entire order amount (item amount plus shipping amount) when the goods are imported into Norway.
When and how is Norway’s supply of goods VAT collected?
- Discogs will charge, collect and remit supply of goods VAT on orders imported into Norway when the individual item amounts are less than the Norway low-value goods threshold of NOK 3,000. If individual items qualify as low-value goods, Norway VAT is charged on the total order value which is the total of item amounts plus shipping amounts. The VAT amount will be added to the order total to be paid by the buyer at the time of order completion. This amount is paid to the seller and will be added to the seller’s monthly Discogs invoice. (We are currently working on a solution that will free sellers from collecting taxes such as VAT; we’ll have more to share on that soon.)
- Discogs will not charge Norway VAT on orders with individual item amounts that are greater than or equal to the NOK 3,000 low-value goods threshold. In this instance, import supply of goods VAT becomes the responsibility of the buyer and the buyer will pay VAT on the total order value (item amount plus shipping amount).
As a buyer or seller, what do I need to do?
Buyers in Norway: If you’re VAT registered, enter your VAT ID in your Settings. VAT will not be applied to orders or collected by Discogs where the buyer is VAT registered.
Sellers outside of Norway shipping into Norway: Attach Discogs’ commercial receipt to the outside of the packaging on all cross-border shipments. Please be sure the buyer’s address shows (rather than Discogs’ address) when folding and placing the commercial receipt on the outside of the packaging. The commercial receipt can be printed from the order page’s “Print” option.
- To ensure Discogs’ VOEC number (we’ll provide this when we receive it) is clearly visible on each package, we encourage you to write Discogs’ VOEC number on the packaging in bold lettering when the commercial receipt indicates Discogs has charged VAT on the order being shipped to Norway. Norway’s VOEC number is Discogs’ VAT registration number in Norway and is used in a similar way to Discogs’ EU iOSS number when low-value goods are imported into an EU country by sellers located outside the EU.
- Check your shipping provider’s requirements when purchasing a shipping label, which may include providing Discogs’ VOEC number for packages that will be imported into Norway where the commercial receipt indicates Discogs has charged VAT on the order.
With Discogs’ support for Norway VAT, we aim to continue to make buying and selling between countries as effortless as possible. The inclusion of Norway VAT on Discogs joins existing support for UK and EU VAT, GST in New Zealand and Australia, sales tax in the United States, and JCT in Japan, with more to come.
This post was updated October 5, 2021 to reflect when Discogs will start collecting Norwegian VAT.