Norway Tax Agency Clarifies VAT Deductions for Worker Lodging, Transport Costs

The Norwegian Tax Administration June 2 posted online Tax Appeals Board Decision No. SKNS1-2025-22, clarifying VAT deductions for accommodation and transport costs, for employees, contract workers, and subcontractors. The taxpayer, a joint venture construction company, provided lodging and meals for its own employees and subcontractors at barracks and rented apartments near a remote worksite, and organized transport to and from the site. The Tax Office denied the related VAT deductions, stating the expenses were private in nature. On appeal, the Tax Appeals Board found that: 1) the accommodation, food service, and cleaning expenses at the barracks were deductible because they ...