Brexit - What does it mean for you?

Business to Consumer

Delivery of goods all the way to the consumer

International webshops must also charge VAT abroad

Do returned goods present a challenge?

If you sell goods from a Danish webshop to foreign recipients, there may be challenges with the distance selling thresholds in Europe. Did you know, for example, that you have to sell for SEK 320,000 per year in Sweden before you are required to register your company in Sweden and be charged Swedish VAT? There are different distance selling thresholds across Europe and different registration requirements so if you need any help please contact us.

Another challenge may involve sales to consumers in Norway or Switzerland, where delivery is complicated at the border, where the goods are cleared/imported into Norway or Switzerland. Here, your customer will have to pay VAT and possibly customs duty and handling charges in order to receive the goods purchased.

This can make it difficult to access these markets because customers will not know the final price. The problem can be resolved by registering in Norway or Switzerland, after which it will be possible to deliver directly to the consumer at no additional cost. You will be able to offer your customers the final price and deliver all the way to their doorstep. At the same time, a registration in these two countries will allow you to set up a return solution as an additional service for your customers.

Business to Consumer

Frequently Asked Questions

How long does it take to register a company abroad?

There are big differences in how long it takes to register abroad with a VAT number, and there are major differences in the documentation required.

In Scandinavia/Northern Europe it takes about +/-4 weeks, but elsewhere or if it is a very busy period, it takes a bit longer. You might also be required to present some original documents and/or documents approved and signed by a Danish notary.

We have high shipping costs to non-EU countries

Danish companies selling to non-EU countries (such as Norway and Switzerland) will find that their costs per shipment are high. This is because each sale is often associated with costs not only for transportation but also for customs clearance (export - import). Depending on the specific delivery terms, this might affect the cost level per sale.

In case a Danish company chooses to register in Norway or Switzerland, it will be possible to combine shipments (bulk) and thus keep costs down while improving the service level of local customers because you will be able to deliver right to their doorstep (DDP).

Purchase of Norwegian domains requires registration in Norway

Many Danish companies want to register in Norway with a Norwegian domain in order to speed up marketing and sales in Norway.

It is currently not possible to purchase and own Norwegian domains unless you are registered in Norway or have a Norwegian corporate ID. This is mandatory even if you do not want to be registered for VAT in the country yet. We will be happy to help you register in Norway if you need to buy a domain.

Why do our customers reject the goods at the border?

There can be many reasons why goods are rejected at the border, but here are a couple of possible scenarios.

When you, as a Danish company, sell to Norwegian customers, you can only deliver your goods to the border.

This means that customers in Norway and Switzerland will be contacted by a carrier who will charge Swiss or Norwegian VAT and customs duty before they can receive the purchased goods. At the same time, the carrier will, of course, charge a fee to prepare the customs clearance documents and possibly commission. This means that your customer does not know the final price of the purchased product until late in the process. Some will therefore refuse to accept the goods, because VAT, customs duty and customs clearance costs far exceed their expectations.

Another scenario is when the documents sent with the goods are incorrect or that there are no documents at all.

We would like to hire a sales representative abroad, how do we do that?

You must of course have studied the requirements regarding contracts, minimum pay, working hours, compulsory pension etc. in the country in question. After that, an employment contract has to be signed, and then salaries have to be calculated and reported.

We can help you in the process by giving you tips and guidance, and we can also do the calculation and reporting of your salaries in Norway.

Inventory value at customs clearance

When a company is registered with a VAT number in Norway or Switzerland respectively, the value at which the goods are cleared through customs is not irrelevant.

In case a parent company sends its goods for customs clearance to own VAT number in Norway or Switzerland, incorrect goods value may have major financial consequences. Please contact us in case you need to review your valuation process or if you have been contacted by the authorities for inspection, so that we can help.

Do I have to pay tax in Norway?

As a Danish employee who works in Norway, you are not generally subject to taxation in Norway.

You can work in Norway for up to 183 days a year without having to pay Norwegian tax on your personal income (salary).

However, as in Denmark, you must have a Norwegian tax card, which states that you are not subject to taxation in Norway.

If you want to keep 100% control of your personal taxation and avoid ugly surprises, please contact us for a detailed review.

You're are more than welcome to contact us, if you have additional questions.

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