Norway Tax Agency Clarifies VAT on Specified Construction

The Norwegian Tax Administration Nov. 21 posted online a binding advance statement clarifying VAT on constructing and transferring care homes with attached staff residences. The taxpayer’s parent company established a housing association, into which the taxpayer merged. When the parent company sold the housing association’s shares to the municipality, the taxpayer sought clarification regarding input VAT deductions. The Tax Agency clarified that: 1) establishing a condominium with a housing association, including a personnel base with shared ownership and common areas, meets the legal requirements for VAT compensation under the Value Added Tax Compensation Act; 2) an owner-sectional condominium doesn’t qualify ...