Here is a list of questions collected from sellers, and the answer from Skatteetaten - May 2017
These answers are based on you running an ENK (sole proprietorship) and that you run your business from Norway. We always advice businesses to use an accountant. Spend your time to do what you know best, and let the accountants do what they know best. There are courses for new business in English in Oslo – check skatteetaten.no/kurs for more information.
When
you run your own business you pay taxes from the first NOK you earn.
The limit of 50 000,- is related to VAT registration (Merverdigavgift).
To run your own business these criteria must be fulfilled:
• responsibility for your own expense and risk
• duration and scope
• purposed to generate profit
• activity
If one or more of these criteria are not fulfilled it is normally characterised as hobby (or that you should be an employee).
2. ‘’I wanted to know how do you calculate the annual expenses to fill in the tax return form? Tools & equipment: I understand I have to calculate the depreciation cost on all the tools, equipment and machinery over a period of its expected life. Raw materials: My major investment was on all the raw materials for jewellery last year. But I cannot show all of it as expense right? How do you calculate material costs? Operating costs: Like rent if any, electricity, transport, internet....anything else?’’
We advice all businesses to use an accountant. To get an overview of all your obligations read altinn.no Start and run business.
You can deduct all cost in relation to business. When a tool or equipement can last for 3 years or more and the cost is more then 15000 you can to use depreciation (when it is talk about tools/machines expected life it is only in relation to "regnskapsmessig avskrivning" for Limited companies (AS)).
You can deduct the cost of the raw materials that you have used to produce products that has been sold (during the year in question). The remaining raw material is what you have in stock on Dec 31th.
The actual cost of rent, electricity, transport and internet can normally be deducted the year the cost has been paid.
2. ‘’I understand I need to pay import tax on supplies I order from abroad, but I’m a tiny business and rarely order for more than 350,- at a time. If I don’t get taxed on supplies from abroad by the post office because my order is below the minimum am I going to get into trouble for it later ?’’
This is a question for Toll. See www.toll.no
Here is the answer I got from the tolls: http://madeinnorwayetsyteam.blogspot.no/2017/10/import-of-supplies-tolls.html
4. ‘’As a small start-up business (sole proprietor), what can I mark as expenses ?’’
You can read about the normal expenses for Sole proprietorships at http://www.skatteetaten.no/no/Bedrift-og-organisasjon/skattemelding-selvangivelse-og-skatteoppgjor/skattemelding-selvangivelse-for-naringsdrivende/for-enkeltpersonforetak/Fradragsveiviser/Utgifter-og-avskrivning/Oppstartkostnader/
5. For those of us who are registered, what about the etsy tax collection on digital items? How does that affect the way we declare our income/vat?
( Still waiting for answer on this one.... )
6. I’ve reached the 50 000,- nok limit and registered for VAT…. But I mostly sell abroad, and hardly have any Norwegian customers. What is the simplest option for my small business, regular reporting or once a year ?
If you have registered in 2017 you have to hand in every other month. And continue to do so for at least 1 year before you can apply to hand in once a year.
If you are to apply to hand in once a year there are certain criteria:
- Turnover must be less than 1 million kroner for the last 12 months
- You have to have been registered in the VAT register for minimum 1 year
- You must have handed in VAT correctly and by the due date for a minimum of 1 year.
You must apply before February 1st.
Whether you chose every other month or once a year, either way you need to keep good accounts.
7. Is there a number, or person from Skatteetaten we can call with etsy, ebay or international sales related questions ?
There are no specific person who works with these types of questions but a good way to ask is to send your question in at skatteetaten.no (either email or via altinn.no) You can also call 800 80 000 (press 9 for English) or ask simple questions at facebook.com skattenminbedrift
Made In Norway team questions
These answers are based on you running an ENK (sole proprietorship) and that you run your business from Norway. We always advice businesses to use an accountant. Spend your time to do what you know best, and let the accountants do what they know best. There are courses for new business in English in Oslo – check skatteetaten.no/kurs for more information.
1.
From a handmade forum: ‘ I heard you don’t need to pay taxes till you
reach 50 000,- in sales, and 150 000,- if it is handmade’
To run your own business these criteria must be fulfilled:
• responsibility for your own expense and risk
• duration and scope
• purposed to generate profit
• activity
If one or more of these criteria are not fulfilled it is normally characterised as hobby (or that you should be an employee).
2. ‘’I wanted to know how do you calculate the annual expenses to fill in the tax return form? Tools & equipment: I understand I have to calculate the depreciation cost on all the tools, equipment and machinery over a period of its expected life. Raw materials: My major investment was on all the raw materials for jewellery last year. But I cannot show all of it as expense right? How do you calculate material costs? Operating costs: Like rent if any, electricity, transport, internet....anything else?’’
We advice all businesses to use an accountant. To get an overview of all your obligations read altinn.no Start and run business.
You can deduct all cost in relation to business. When a tool or equipement can last for 3 years or more and the cost is more then 15000 you can to use depreciation (when it is talk about tools/machines expected life it is only in relation to "regnskapsmessig avskrivning" for Limited companies (AS)).
You can deduct the cost of the raw materials that you have used to produce products that has been sold (during the year in question). The remaining raw material is what you have in stock on Dec 31th.
The actual cost of rent, electricity, transport and internet can normally be deducted the year the cost has been paid.
2. ‘’I understand I need to pay import tax on supplies I order from abroad, but I’m a tiny business and rarely order for more than 350,- at a time. If I don’t get taxed on supplies from abroad by the post office because my order is below the minimum am I going to get into trouble for it later ?’’
This is a question for Toll. See www.toll.no
Here is the answer I got from the tolls: http://madeinnorwayetsyteam.blogspot.no/2017/10/import-of-supplies-tolls.html
4. ‘’As a small start-up business (sole proprietor), what can I mark as expenses ?’’
You can read about the normal expenses for Sole proprietorships at http://www.skatteetaten.no/no/Bedrift-og-organisasjon/skattemelding-selvangivelse-og-skatteoppgjor/skattemelding-selvangivelse-for-naringsdrivende/for-enkeltpersonforetak/Fradragsveiviser/Utgifter-og-avskrivning/Oppstartkostnader/
5. For those of us who are registered, what about the etsy tax collection on digital items? How does that affect the way we declare our income/vat?
( Still waiting for answer on this one.... )
6. I’ve reached the 50 000,- nok limit and registered for VAT…. But I mostly sell abroad, and hardly have any Norwegian customers. What is the simplest option for my small business, regular reporting or once a year ?
If you have registered in 2017 you have to hand in every other month. And continue to do so for at least 1 year before you can apply to hand in once a year.
If you are to apply to hand in once a year there are certain criteria:
- Turnover must be less than 1 million kroner for the last 12 months
- You have to have been registered in the VAT register for minimum 1 year
- You must have handed in VAT correctly and by the due date for a minimum of 1 year.
You must apply before February 1st.
Whether you chose every other month or once a year, either way you need to keep good accounts.
7. Is there a number, or person from Skatteetaten we can call with etsy, ebay or international sales related questions ?
There are no specific person who works with these types of questions but a good way to ask is to send your question in at skatteetaten.no (either email or via altinn.no) You can also call 800 80 000 (press 9 for English) or ask simple questions at facebook.com skattenminbedrift
