Norway Tax Agency Clarifies VAT Treatment of Operating Subsidies for Canteens

The Norwegian Tax Administration Jan. 20 posted online a binding advance statement clarifying the VAT treatment of operating subsidies for canteens. The taxpayer was a company that operated canteens for an employer under contract. Most of the canteen’s users didn’t pay directly for purchases in the canteen, but the employer deducted the amounts from their salaries. A pre-agreed operating subsidy provided that the employer paid the taxpayer was included on the invoice. The taxpayer sought clarification on the VAT treatment of the subsidy. The Tax Agency found that: 1) the taxpayer was operating under a “management fee” model, and not ...