Dropshipping has become a popular business model in Norway, but it comes with complex legal obligations that every entrepreneur should be aware of. This guide will walk you through the key rules, requirements and practical solutions for running a legal and profitable dropshipping business in the Norwegian market.
Legal Registration Requirements
Company registration
All dropshipping companies in Norway must registered in the Brønnøysund Registers, either as:
- Sole proprietorship (ENK): Suitable for beginners with low risk
- Limited liability company (AS): Limits personal liability but requires NOK 30,000 in start-up capital
Your organisation number also works as an EORI number (Economic Operators' Registration and Identification) for imports from countries outside the EU/EEA.
MVA registration
When your annual turnover exceeds 50.000 NOK, the company must registered in the VAT register. Before registration, you are not allowed to charge VAT on sales.
VOEC scheme and VAT rules
VOEC (VAT On E-Commerce)
From 1 January 2024, the all goods imported to Norway pay VAT from the first krona. The VOEC scheme simplifies the process:
- Foreign sellers can register in the VOEC register
- Seller charges Norwegian VAT (25%) on sales of goods below NOK 3,000 per unit
- Customer pays VAT at the time of purchase and avoids extra fees on delivery
Benefits of VOEC registration
- Customers receive goods directly without customs clearance fees
- Reduces the return rate by up to 14% compared to non-VOEC registered stores
- Automated solutions like Shopify VOEC integration makes it easy to handle
Exceptions to VOEC
Certain product categories are excluded from the VOEC scheme and still requires manual customs clearance:
- Food products
- alcohol
- Tobacco products
- Pharmaceuticals
Consumer rights and returns management
Right of cancellation
According to Cancellation Act Norwegian consumers have the right to return goods purchased online within 14 days of receipt without giving a reason. As a dropshipper you must:
- Clearly inform about the cancellation policy before the purchase
- Accept returns even if your supplier does not
- Refund the customer in full, including delivery costs
Lack of information about cancellation rights can Extend the deadline to 12 months.
Right of complaint
Electronic products are subject to a Complaint period of five yearswhile for goods with a limited lifespan (such as clothing) the deadline is two years. In the first six months, the seller must prove that the defect did not exist at the time of delivery.
Product liability and safety
CE marking and product safety
As an importer, you are legally responsible for ensuring that the products comply with Norwegian safety requirements:
- 62% of electronics and toys from dropshipping suppliers lack CE documentation
- You risk fines of up to 10% of annual turnover in case of breach of safety rules
- Product liability law hold you responsible for damages caused by defective products
Practical safety measures
- Demand Test reports and certificates from suppliers
- Use third-party services like Intertek or DNV GL for quality control
- Characters product liability insurance to cover any claims for damages
Supplier selection and risk management
Due diligence process
Thorough supplier assessment is critical for successful dropshipping:
- Geographical location: EU suppliers reduce delivery time from 30+ to 5-7 days
- CertificationsSearch for ISO 9001 (quality) or BSCI (labour conditions)
- Price guarantee: Negotiate price adjustment clauses max 2% per quarter
Contractual Protections
- Delay penalties: 1% of order value per day late
- GDPR compliance: Ensure suppliers don't misuse customer data
- Counterfeit goods clauses: Agreement on 200% compensation for evidence of counterfeiting
GDPR and Data Protection
When processing customer data, dropshipping companies must comply with Norwegian Personal Data Act:
- Obtain lawful basis for processing (consent or contract fulfilment)
- Inform customers about the purpose of data processing
- Pay special attention when transferring data to suppliers outside the EEA
- Enter data processing agreements with all external parties that process personal data
Common Errors and Solutions
Top 5 Mistakes Among Norwegian Dropshippers
- Missing VOEC registration (57% by newbies)
- Unclear communication about customs and taxes (42% complaint rate)
- Insufficient product documentation (68% missing CE reports)
- Overestimation of storage capacity (22% experiences out of stock items monthly)
- Non-compliant VAT reporting (penalty tax of up to 15% of the amount owed)
Effective Solution Strategies
- Implement Shopify + DSers for automatic inventory management and VAT calculation
- Use services like Zonos for real-time calculation of customs fees on your website
- Consider the following blockchain tracking to document the origin of products
Conclusion and Recommendations
Successful dropshipping in Norway requires a balance between legal compliance and operational efficiency. Key actions include:
- Correct registration of business and VAT matters
- VOEC registration for smooth VAT management when importing
- Careful supplier selection with a focus on EU-based quality suppliers
- Clear communication about delivery times, return policy and possible fees
- Regular reassessment of supplier agreements and legal obligations
By combining technology tools with proactive legal due diligence, you can minimise risk and build a sustainable dropshipping business in the Norwegian market.
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