Norway Tax Agency Issues Notice Clarifying Input VAT Deductions for Construction Administration

The Norwegian Tax Administration Nov. 4 issued Notice No. SKD 6/1995, clarifying the VAT taxation of construction administration. The taxpayer, a company that coordinates and manages construction for different builders, was assessed under the VAT Act for all goods and services purchased in the company’s name but at the builder’s expense and risk. The Directorate of Taxation noted that: 1) the company hadn’t undertaken construction assignments, placing the business outside the scope of the act; 2) the company should ‘t be registered for its management activities; and 3) the taxpayer wasn’t entitled to claim a deduction for input tax on ...