Coronavirus - important information from the Tax Administration

Who can use the simplified system

Only supplies to private individuals and non-business customers (B2C) can be calculated and reported via the VOEC scheme. Please note that vendors will not disqualify for the VOEC scheme if they make such supplies to businesses and public sector bodies (B2B) as well. However, these supplies (B2B) are to be accounted for by the business receiving the services under the reverse charge mechanism, and not the VOEC scheme.

If the vendors are subject to VAT in Norway for the supply of any other goods or services, the operator cannot opt for the simplified VAT scheme to report VAT on electronic services. The operator must then register in the ordinary VAT Register and report all supplies on the standard VAT declaration.

The supplier cannot use the system if it is established in Norway or chooses to set up business in Norway. In such cases, the supplier has an obligation to register in the ordinary VAT register. 

If a supplier of electronic services delivers the services through the use of an intermediary, the intermediary shall be deemed to be the supplier.

This means it is necessary to explain the distinction between the supplier and the intermediary:

The difference will be based on an overall assessment of whether ‘the delivery takes place through the use of an intermediary’. It is not decisive whether underlying agreements between the parties classify the relationship as involving a subcontractor, intermediary, agent or commissioner etc. The definition of electronic services is mainly based on the delivery of the services. Who is contractually responsible for the content of the service is not necessarily decisive when assessing who must be registered. When deciding who the supplier is pursuant to the Value Added Tax Act, the most important factor is who is responsible for the actual delivery, i.e. who is responsible for transferring the files to the end user or gives the end user access to the digital content. Who collects payment from the recipient must also be taken into consideration. This provision means that those who sell electronic services through an intermediary cannot themselves be registered pursuant to section 2-1 third paragraph.

A supplier will be deleted from the simplified registration system when the enterprise ceases trading or when the conditions for using the simplified registration system are no longer met. A supplier will also be deleted if it repeatedly fails to fulfil its obligations pursuant to the Value Added Tax Act.