Norway

The limit for VAT exemption on e-commerce is retained

The exemption for VAT and fees for imports of goods under 350 kroner is retained in the state budget.

Virke, who is among the critics of the rule, believes it affects Norwegian trade, and the organization calls the proposal as both incomprehensible and irresponsible.

“It is incomprehensible that the government continues to subsidise multinational online companies at the expense of Norwegian jobs,” says Ivar Horneland Kristensen, CEO of Virke.

Basically, it is the majority in the Parliament to remove the VAT exemption for online trading below NOK 350, but sources tell NRK that the Progress Party has been helped to keep the scheme in the proposal for next year’s state budget.

The Minister of Industry, Torbjørn Røe Isaksen (H), has previously told Aftenposten that he will look at the 350-krone limit when submitting a report on the trading industry, which will be in the new year. I think it’s too late.

– It is irresponsible to wait for a parliamentary report to be dealt with next year. The subsidization of foreign competitors through a free-of-charge limit of NOK 350 picks up the trading industry in Norway for sales and jobs, says Kristensen.

A removal of the 350-krone limit will give the state an increase of revenues of 1.4 billion, according to Ap and Sp, both of whom believe that VAT should be paid for all imports regardless of value.

“We are likely to earn more jobs and revenues for the state because the online trade is increasing and because the state also gets more into other taxes and excise duties by removing the 350 limit. These are the jobs and income we are in need for the future, says Kristensen.

 

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