Norway Tax Agency Clarifies VAT Obligations of Municipal Port Company After Intended Conversion to LLC

The Norwegian Tax Administration Feb. 16 posted online Tax Appeals Board Decision No. SKNS1-2023-68, clarifying the VAT obligations of a company after its intended conversion into a limited liability company (LLC). The taxpayer, an inter-municipal company, which operates port activities, intended to transfer most of its operations to an LLC, except for the taxpayer’s exercise of authority under the Ports and Waters Act. The Tax Office rejected the taxpayer’s contention that the LLC was subject to VAT because VAT was applicable to infrastructure services in municipal ports, which would be retained by the company. On appeal, the Tax Appeals Board ...