Norway Tax Agency Posts Board Ruling Clarifying VAT Deduction Rules for Shared Rental Spaces

The Norwegian Tax Administration Feb. 17 posted online Tax Appeals Board Decision No. SKNA4-2024-59, clarifying the VAT deduction rules for shared rentals. The taxpayer, a landlord, leased an office space to a company that sublet part of the property to its subsidiary. The Tax Office granted only a partial VAT deduction on the grounds that the sublet areas, including the common areas shared with the tenant, weren’t eligible for the deduction. The taxpayer appealed, claiming that VAT deduction shouldn’t be reduced for the shared common areas. On appeal, the Tax Appeals Board found that: 1) the taxpayer was only entitled ...