Norwegian importVAT system Pål Hellesylt Director Directorate of Norwegian Customs and Excise palhellesylttollno WCO Revenue Conference Brussel 30 June 2014 Norwegian import Value 500 billion NOK per year 60 ID: 770083
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Norwegian import-VAT systemPål Hellesylt, Director, Directorate of Norwegian Customs- and Excisepal.hellesylt@toll.no WCO Revenue Conference, Brussel 30 June 2014
Norwegian importValue: + 500 billion NOK per year (60 bn euro) VAT: 122 billion NOK (15 bn euro)5 million import declarations www.toll.no Side 2
www.toll.no Side 3 5% 66 % 22 % Declarations per transport
Customs VAT-tasks todayControlling declared data/physical inspections Calculate customs value Determine VAT (and customs & exices) Collect VAT on importPost audit control Complaints www.toll.no Side 4
Todays credit and collecting system VAT paid at release of goods ..but later payment possible – and used by business Credit: paying month after claim arise, no interest Checking solidity, guarantees if bad rating Not creditworthy: paying same day www.toll.no Side 5
Securing state revenuewww.toll.no Side 6 Key figures collection, claims 2013 mill NOK 2013 per cent New claims 2013 213 258 New outstanding claims (2013) 283 0,13 % Accumulated outstanding claims 461 0,22 %
Bilde: finansminister – tolldirektør - avisutklippwww.toll.no Side 7
Streamlining portfoliosCustoms shall: Strengthen border control Expand role as border authority Facilitate legal trade Tax shall: Determine/collect all VAT and excise taxes Shall consider postponed accounting www.toll.no Side 8
www.toll.no Side 9
Import-VAT Division of tasks - preliminarywww.toll.no Side 10 Release of goods Customs Tax Credit Admistration Post Audit Control Complaints Intellegence & analysis
Postponed Accounting – to be consideredPossibility of offsetting Import-VAT against subsequent sale of goods – eliminating need of payment at time of import. Parliament decided in 2007 to keep payment at import P ro and cons to be reexamined this autumn www.toll.no Side 11
Postponed Accounting – cost/benefitReduces liquidity binding - but reduces state income correspondently Reduced transaction costs for business? Eliminates need for one set of payments But possibly more work with VAT-reporting Increases fraud risk, “missing traders” etc. www.toll.no Side 12
Postponed accounting - possible modifications Authorization system Demanding proof of solidity or guaranteesExcluding business sectors with long VAT-terms (ex: Agriculture 1 year term) www.toll.no Side 13