VAT, “MVA” in Norway – exemption
VAT means: Value Added Tax. A Norwegian word for VAT is: “merverdiavgift, also written as “MVA”. Cretan Garden is a starter, and expected to stay below the magical line of 50,000 Norwegian krone income per year, For this kind of commerce is an exemption concerning calculating “MVA”. The percentage “MVA” would be 25%. This means that as soon in total there will be more sold than 50.000 kroner, the Cretan Garden products will have to become 25% more expensive. The prices, as these are now, may seem high for not-insiders of handcrafted herbal olive oil soap, but these prices are significantly below the real total of costs. This could only be achieved by not calculating all working hours.
Because of several other reasons as well the amount of handcrafted soaps will be modest. This will keep the prices affordable for the customers. Cretan Garden, a one-person company, was not meant for economic growth in the first place, but to avoid waste of the high-quality food products organic extra virgin olive oil and organic herbs, to transform these into a sustainable product.
VAT on import / export
Since July 2021 the regulations about import and export have changed worldwide, also in EU. Norway is not an EU member state but a so-called EU treaty country, This means that the Cretan Garden products, which are produced in Norway, are categorized as export as soon they leave Norway. These become import as soon these products arrive in the country of destination. VAT is calculated in the country of destination, before it leaves the terminal on the airport of the country. The customer pays the customs. This cannot be changed.
The same procedure takes place when Cretan Garden imports from an EU country or the rest of the world. Cretan Garden pays import taxes, VAT, In Norway to the Norwegian state, which is 25% of the total amount of costs, visible in the information on the parcel. Norwegian customers do not pay “MVA” to Cretan Garden. For explanation: see paragraph above: VAT “MVA” in Norway / exemption.