Norway Tax Agency Clarifies Voluntary Registration, Input VAT Deduction Rights Regarding Municipal Care Home Leases

The Norwegian Tax Administration March 11 posted online Binding Advance Ruling No. 2/2026, clarifying voluntary registration and input VAT deduction rights regarding municipal care home leases. The taxpayer, a company, intended to lease purpose-built care home units for elderly residents with 24-hour care decisions. The taxpayer sought clarification on whether a lease with the municipality allowed for voluntary registration and input VAT deduction rights. Upon review, the Tax Directorate clarified that the taxpayer: 1) qualified for voluntary registration under Section 2-3 of the VAT Act because the homes followed Housing Bank standards for specially adapted care housing; 2) properly claimed ...