VAT on imported goods – how it works
Where the business is VAT-registered, it calculates and reports import VAT itself in the VAT return instead of paying it to Customs or the freight forwarder at the border. The basis is the customs value plus any duty and other import charges – not just the amount on the supplier's invoice. That is the most common mistake in importing.
Who pays VAT on import?
Where the business is entered in the VAT Register, it normally calculates and reports import VAT itself in the VAT return. VAT is therefore not normally paid to Customs or the freight forwarder when the goods cross the border. Where the importer is not VAT-registered, import VAT is normally calculated and paid in connection with the customs declaration.
How is import VAT calculated?
The starting point is the goods' customs value. For an ordinary import the customs value typically builds on the purchase price, freight to the Norwegian border, insurance, packaging, and certain commissions, royalties and other costs that the customs valuation rules require to be included. Any customs duty and other charges payable on import are then added before VAT is calculated: VAT basis = customs value + any duty + other relevant import charges Most goods carry 25% VAT. Food normally carries 15%, while some goods are zero-rated.
A worked example
A Norwegian VAT-registered company imports a machine. Purchase price after Customs' currency conversion: NOK 500,000. Freight and insurance to the Norwegian border: NOK 50,000. Customs duty: nil. The VAT basis is NOK 550,000, and at 25% the import VAT is NOK 137,500. Where the business has a full right to deduct on the machine, the import VAT and the corresponding deductible input VAT are reported in the same VAT return.
Do not calculate VAT from the supplier's invoice alone
The most common mistake is to take the amount on the foreign supplier's invoice and calculate 25% of it. Freight, insurance, duty and other relevant amounts can affect the VAT basis, and in the example above the freight alone accounts for NOK 12,500 of VAT. So start from the import declaration and its supporting documents, and check them against the declaration overview from Customs. From 1 May 2026 that overview is only available through Altinn 3.
Can the business deduct import VAT?
The ordinary rules on VAT deductions apply to imports too – see VAT deductions A business that is not registered normally has to pay VAT on import. Where it registers later, it can under the conditions for retrospective VAT settlement be entitled to deduct VAT on qualifying purchases from before registration – see VAT registration
Goods repaired abroad
On re-importation after repair or processing, the VAT basis is normally calculated from the cost of the work and the carriage out and back, rather than from the whole value of the goods again. That can make a large difference for expensive equipment sent out for service.
Temporary importation
Goods only to be used temporarily in Norway can in some cases be brought in without customs duty and other import charges through the temporary importation procedure. Among other things the goods have to be imported for a particular purpose, be identifiable and be re-exported within the deadline.
What is VOEC?
VOEC is a simplified VAT scheme used, among other things, where foreign online shops sell low-value goods directly to Norwegian consumers. For goods the scheme applies as a general rule where each individual item has a value under NOK 3,000. The threshold is per item – not the total value of the parcel.
Some goods have special rules
Some categories have their own VAT rules that change more often than the rest. Electric passenger cars are the most practical example: the exemption applies only up to a particular amount, and that limit has been changed several times in recent years. Where the business is importing an electric car, check the limit in force for the year of import before calculating the VAT. Do not rely on a figure from an older article – including this one.
Three recurring mistakes
1. VAT calculated from the supplier's invoice alone. 2. The declaration never checked. 3. Import VAT forgotten entirely because the business has a full right to deduct – as if netting to nil meant nothing had to be reported. The main process for a VAT-registered business is: check the import declaration, establish the correct VAT basis, use the right rate, report the import VAT in the VAT return, claim the deduction so far as the business is entitled, and reconcile the imports against the declaration overview in Altinn. If you need help with importing, we check the basis, the bookkeeping and the reporting. Where the business runs an online shop, importing connects to channel reconciliation, VOEC and sales to the EU – see Accounting for e-commerce
Read more
This is general guidance, not advice on your specific case. Deadlines, rates and amounts change – always check the current rules, or get in touch with us.
More on value added tax
- VAT registration – when does a business have to register?
- VAT deductions – what can you reclaim?
- VAT on services to and from abroad – how do you invoice correctly?
- The VAT adjustment rules for real property – how do they work?
- Voluntary VAT registration for letting property – when is it possible?
- VAT exemptions for health, education and culture – what applies?
- VAT periods and deadlines – when is the VAT return due?
- The annual VAT return – when can you apply for an annual period?
- Bad debts – when can you recover the VAT?
- VAT on winding up and bankruptcy – what has to be settled?
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