Norway Tax Agency Clarifies VAT Treatment of Acquisition, Use of Solar Cell Systems

The Norwegian Tax Administration Nov. 23 posted online a statement of principle clarifying the VAT treatment of the acquisition and use of solar cell systems that produce electricity for private use, where surplus power is sold back to the electricity supplier, as well as combined systems used in registered businesses that sell their excess electricity. The clarification explains that: 1) a registered business can deduct input VAT for electricity purchased from an electricity supplier if used in taxable business or resold, but not for electricity used privately; 2) there is no right to deduct input VAT for electricity purchased from ...