Norway Tax Agency Posts Board Ruling Clarifying VAT Deduction Rules for Accommodation Costs in Barracks

The Norwegian Tax Administration June 2 posted Tax Appeals Board Decision No. SKNS1-2025-23, clarifying VAT deduction rules for accommodation costs in barracks. The taxpayer, a company engaged in maintenance and insulation services for industrial projects primarily in the oil and gas sector, claimed input VAT deductions for lodging both employees and hired personnel near work sites. The Tax Office initially denied the deduction, arguing the costs weren’t sufficiently linked to the company’s registered business activities. The taxpayer appealed, providing documentation including invoices, occupancy logs, and explanations of the operational necessity of the accommodations. On appeal, the Tax Appeals Board partially ...