Norway Tax Agency Clarifies Input VAT Deduction on Road Facility Construction

The Norwegian Tax Administration Oct. 31 posted online Tax Appeals Board Decision No. SKNS1-2024-92, clarifying VAT on road facility construction. The taxpayer and a municipality entered into a development agreement regulating a road facility transfer. The taxpayer sought clarification on input VAT deductions for goods and services it acquired for the road construction. The Tax Office denied the VAT deduction, because the road facility would transfer to the municipality for tax-exempt use. On appeal, the Tax Appeals Board allowed the input VAT deduction and explained that: 1) the municipality’s financial contribution to the taxpayer’s project didn’t create VAT-exempt turnover, allowing ...