Norway Tax Agency Posts Board Ruling on Input VAT Deduction for Share Purchase Transaction Costs

The Norwegian Tax Administration March 11 posted online a tax appeals board decision explaining the VAT tax treatment of advisory and service costs incurred on share transactions. A Norwegian software company bought the shares of two companies, and attempted to take VAT deductions on the related advisory and service costs. The tax appeals board found that: 1) VAT deductions are allowed for incoming VAT on purchases of goods and services used in the registered business; 2) stock transactions are VAT exempt; and 3) the costs related to the purchase of shares in this case don’t warrant VAT deductions. [Norway, Tax ...