Norway Tax Agency Clarifies VAT Treatment for Transport, Deposition of CO2

The Norwegian Tax Administration Nov. 8 posted online a binding advance statement clarifying the VAT treatment of transport and deposition of CO2. The taxpayer, a company, provided services regarding the transport and deposition of CO2 and sought clarification for its VAT treatment. The Tax Agency clarified that: 1) the supply of transport services incurred VAT liabilities; 2) the import VAT of CO2 itself was zero because it had a negative value; 3) the turnover of CO2 deposition service on the continental shelf was considered to be “completely ready for use” outside the VAT area and therefore it was VAT exempt; ...