The Supreme Court declines to hear the case between Boozt AB and the Norwegian Tax Administration

The VOEC scheme (Value Added Tax on E-Commerce) involves calculating and paying Norwegian value-added tax for "delivery of low-value goods" sold from abroad to Norwegian consumers (B2C sales). This applies to goods units with a value below NOK 3,000. Consumers pay the value-added tax directly to the seller, who then reports the paid value-added tax to the Norwegian Tax Administration. The scheme allows foreign entities to sell low-value goods to Norwegian consumers without calculating customs duties, while also simplifying administrative procedures.

Boozt operates a global e-commerce business with sales to 14 countries in Europe, where online sales to Norwegian customers account for less than 15 percent of the turnover. The company has no employees in Norway, and purchases are made directly with the Swedish company. Marketing and advertising campaigns are globally coordinated, and the marketing that takes place in Norway is part of internationally coordinated campaigns.

The main issue in the case was whether Boozt’s business has taxable domestic sales in Norway, assessed based on whether the company sells goods in Norway or to Norway. The Court of Appeal noted that it was not decisive that there is direct marketing to Norwegian customers and that some communication and terms of agreement are in Norwegian. The marketing was generic for all countries, and parts of the text were automatically translated into Norwegian for Norwegian customers. The Court of Appeal further noted that it is not decisive that the prices are in Norwegian kroner or that reference is made to the Norwegian Cancellation Act and the Norwegian Consumer Authority. This does not change the fundamental assessment that Boozt’s business takes place abroad and that part of this business is to sell goods to customers in Norway. Furthermore, the Court of Appeal noted that it is of little significance that Boozt has been registered in the VAT register since 2010. It is the business as it appears today, viewed against current regulations, that is decisive.

The judgment has implications for other foreign online companies or trading platforms that wish to use simplified registration when importing low-value goods to Norway. There can be significant custom duty savings and other administrative simplifications by using the scheme. It is assumed that the judgment may lead to proposals for legislative changes or changes in current practice, but for now, the access for foreign trading platforms to register in VOEC is considered expanded compared to previous tax administration practices.