Norway Tax Agency Posts Board Ruling Clarifying VAT Treatment for Foreign Income From Installation Work

The Norwegian Tax Administration March 18 posted online Tax Appeals Board Decision No. SKNS1-2024-5, clarifying VAT treatment of foreign income from installation work. The taxpayer, a Norwegian Registered Foreign Enterprise (NUF), lacked a physical presence in Norway, yet applied for VAT registration based on “supply and install” contracts for interior design furnishings. The taxpayer argued that construction contracts are taxed upon completion, limiting VAT charges and deductions without ongoing projects or VAT registration, referencing contractual delivery outside of Norway. The Tax Office concluded that the entire contract is taxable in Norway, requiring ongoing invoicing to match work progress, based on ...