Norway Tax Agency Posts Board Ruling Clarifying VAT Adjustment on Specific Construction Expenses

The Norwegian Tax Administration Nov. 8 posted online Tax Appeals Board Decision No. SKNA11-2022-15, clarifying the application of VAT to expenses for constructing two pedestrian and cycle paths. The taxpayer, a company, had claimed VAT refunds for building the paths, which were later transferred to certain public entities. The taxpayer argued that the work on the paths should be classified as planned or intended maintenance and therefore not subject to VAT. The Tax Office recalculated the VAT refund, stating that since the paths were moved and significantly modified, the work must be treated as new construction or upgrades, which required ...