Norway Tax Agency Clarifies VAT Treatment of Intended Maintenance for Capital Goods

The Norwegian Tax Administration Jan. 21 posted online a statement clarifying the VAT treatment of intended maintenance for capital goods under the VAT Act. The statement clarifies that: 1) for real property building measures, repair and maintenance costs are typically VAT-deductible immediately, while improvements must be capitalized and deducted through depreciation; 2) costs for intended maintenance on buildings are immediately deductible, despite involving activities that would be deemed improvements if not used in place of maintenance or repair activities; 3) taxpayers must assess the right to deduct input tax for capital goods over an adjustment period and make revisions if ...