Norway Tax Agency Clarifies VAT Treatment of Construction, Transfer of Care Homes

The Norwegian Tax Administration Dec. 6 posted online a binding advance statement clarifying the VAT treatment of construction and transfers of care homes. The taxpayer, a subsidiary, engaged in building care homes. The taxpayer’s parent company established a housing association, and the taxpayer merged into it. The shares in the housing association were sold to the municipality, and the taxpayer sought clarification regarding its VAT treatment. The Tax Agency clarified that the: 1) outlined arrangement didn’t constitute the taxpayer’s direct performance of a service towards the residents, and the municipality must exercise a real ownership position; 2) taxpayer couldn’t claim ...