Norway Tax Agency Posts Board Ruling Clarifying VAT Treatment for Construction Contributions

The Norwegian Tax Administration Dec. 8, 2023, posted online Tax Appeals Board Decision No. SKNS1-2023-50, clarifying the VAT treatment on construction contributions. A municipality, considered to be the developer for the relevant stabilization/security works in a specific area. A company was the largest property owner in the relevant development area and agreed to cover most of the cost of the security measures. The municipality sought clarification on whether it could collect a construction contribution from the company without output VAT for the development of infrastructure. The Tax Office concluded that the municipality must calculate VAT when collecting construction contributions. On ...