Norway Tax Agency Clarifies VAT Treatment of Canteen Contributions Paid by Companies to External Operators

The Norwegian Tax Administration Dec. 16 posted a statement clarifying the VAT treatment of canteen contributions paid by companies to external operators, specifically regarding whether contributions intended to cover fixed costs should be subject to VAT. The statement clarifies that: 1) under the management fee model, if the company purchases the food and the operator only manages operations and provides services, the contribution is taxable and VAT applies under the VAT Act; 2) under management risk models, if the operator buys the food and bears operational risk, including user payment, fixed price, or volume price, the contribution isn’t subject to ...