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Invoicing fees in Norway: An In-depth Review

03.11.2023
Invoicing fees in Norway: An In-depth Review

When talking about finance and commerce, there are many terms floating around. One of these terms that not everyone may be familiar with is “invoice fee”. This article will provide a deep dive into the topic and how it relates to consumers, businesses and the transaction process itself.

What is an invoice fee in Norwayand when is it charged?

In short, an invoice fee is an additional fee that a seller can charge a buyer for issuing and sending a bill. But this is not a fee that can be added arbitrarily. An invoice fee can only be charged if it has been agreed in advance. According to section 37 of the Consumer Purchase Act, the seller cannot charge a fee for issuing and sending a bill in addition to the purchase price if it does not clearly follow from the agreement. So, if it has not been agreed, the customer has the full right to refrain from paying the fee.

VAT and its impact on the invoice fee

When it comes to taxes and duties, it’s important to understand how VAT (value added tax) applies to invoice fees. If you are a VAT-liable business, VAT must be calculated on the invoice fee. For example, if you have agreed on an invoice fee of NOK 30 that includes VAT, you would enter NOK 24 in the unit price and add 25% VAT. 24 in the unit price and add 25% VAT.

The benefits of eInvoice in Norway

In our digital age, invoices have also become digital. With eFaktura, the invoice is sent directly to a customer’s online bank, which brings several benefits. First and foremost, it reduces invoicing costs as there is no need to print the bill on paper and then post it. This can often result in the invoice fee being removed or at least reduced.

How to include an invoice fee on the invoice?

Whilst it may seem like a simple process, there are a few steps you should follow to add an invoice fee to a bill. Firstly, it’s important to agree with your customers that you can charge this fee. Without this agreement, you risk breaking the law.

Once agreed, you can add the invoice fee as one of your products. For example, if you use a system such as SendRegning, the fee will not be added automatically. You must therefore do this manually by retrieving the invoice fee as a product and adding it to the invoices you send.

Is an invoice fee always necessary in Norway?

While an invoice fee can help businesses cover some of the costs of invoicing, it’s not always necessary to charge it. Many businesses choose to price their goods and services in a way that also covers the cost of invoicing. This means that customers don’t incur any additional costs and the business can still cover its costs.

Finally: The customer’s perspective

It’s important to remember that customer satisfaction should always be at the centre of any decision. While it can be tempting to add an invoice fee to cover costs, it can also risk scaring away customers. That’s why it’s important to weigh the pros and cons and think about how your decisions affect your relationship with customers.

It’s also important to be transparent. If you decide to charge an invoice fee, make sure customers know why it’s being added and how it was calculated. This can build trust and understanding between you and your customers.

The impact of digitalisation on invoice fees in Norway

The digitalisation of the finance and accounting industry is having a major impact on how invoices are handled today. With increased access to digital tools and platforms, many companies have moved from traditional paper invoicing to electronic systems such as eInvoice. This has not only made the invoicing process more efficient, but has also reduced the costs associated with sending and receiving invoices. In this context, the invoice fee, which was traditionally charged to cover the cost of paper invoicing, can often be reduced or eliminated altogether. This leads to savings for businesses and consumers.

Customer expectations and invoice fees

In an age where consumers are becoming more aware and informed, many customers expect full transparency around all fees and additional costs. With the availability of information online, comparing prices and services, it is crucial for businesses to be clear and fair in their pricing structure. An unexpected invoice fee can be perceived as a hidden cost and can damage a company’s reputation. That’s why it’s more important than ever for businesses to communicate clearly about such charges, make sure they are justified, and be willing to adapt to changes in the market and customer expectations.

Are you ready to make an informed decision about invoice fees? With this knowledge in hand, you’ll be better equipped to navigate the complex world of bills and fees.

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