DistantNews
Support us
Norwegian consumers pay double VAT as agencies refuse responsibility
🇳🇴 Norway /Economy & Trade

Norwegian consumers pay double VAT as agencies refuse responsibility

From Aftenposten · () Norwegian

Translated from Norwegian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Norwegian customers face double VAT charges on online purchases due to the VOEC scheme.
  • Tax authorities and consumer agencies deflect responsibility for handling customer complaints.
  • The VOEC scheme, intended to simplify online shopping, is criticized for burdening consumers and potentially distorting competition.

Norwegian consumers are caught in a bureaucratic tangle over value-added tax (VAT) when shopping on international online platforms like eBay and AliExpress. The VOEC (VAT on E-commerce) scheme, designed to streamline online purchases, is instead leading to double taxation for many.

The entire scheme is scandalous. It worked fine before, but now the state is earning enormous sums at the expense of consumers.

— Jonatan RambergA consumer previously affected by the double VAT charges, describing the situation.

Customers are charged VAT by the online platform and then again by customs when the package arrives in Norway. This issue arises when sellers, particularly smaller, less professional ones common on platforms like eBay, fail to register packages correctly digitally. The problem has persisted for at least six months, with one consumer previously reporting significant financial and time costs.

Since the VOEC scheme was introduced, the Consumer Authority has continuously received tips and inquiries from consumers who often end up paying double VAT.

— Consumer AuthorityDescribing the volume of complaints received regarding the VOEC scheme.

Despite the recurring issue, neither the Norwegian Tax Administration (Skatteetaten) nor the Consumer Authority (Forbrukertilsynet) is willing to take definitive responsibility for resolving customer complaints. The Consumer Authority receives numerous tips and inquiries about the double VAT charges but states it cannot assess the issue as it is a legally mandated scheme. They have offered to forward consumer tips to the Tax Administration, which oversees the VOEC system, but the Tax Administration has declined, citing no authority to refund the tax or provide information beyond their website.

We do not have the authority to refund the tax and cannot provide information beyond what is on our website. Therefore, we do not wish for you to forward such inquiries to us.

— Tax AdministrationResponding to the Consumer Authority's offer to forward consumer complaints.

The VOEC scheme replaced the 350-kroner duty-free limit on January 1, 2024. It allows foreign online stores to sell goods up to 3,000 kroner to Norwegians without customs duties, provided they pay the VAT to the Norwegian state. However, critics argue this creates unfair competition, particularly for Norwegian clothing companies that must pay textile duties on imports.

Therefore, complaints concerning the scheme itself must also be directed at them.

— Mari Bakke AkslenUnderdirector at the Consumer Authority, stating that complaints should be directed to the Tax Administration.
DistantNews Editorial

Originally published by Aftenposten in Norwegian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog