Norway Tax Agency Clarifies Input VAT Deductions for Transaction Costs Related to Share Purchases

The Norwegian Tax Administration April 22 posted online Tax Appeals Board Decision No. SKNA2-2025-64, clarifying input VAT deductions for transaction costs related shares purchases. The taxpayer, a corporate group, claimed input VAT deductions on advisory, legal, and due diligence costs incurred in purchasing shares in a target company. The Tax Office denied the deductions and imposed 20 percent additional tax. On appeal, the Tax Appeals Board found that: 1) denying the deductions was correct because the purchases weren’t for use in, or relevant to, the taxpayer’s taxable activities, and lacked a close and natural connection to them; 2) imposing additional ...