Norway Tax Agency Publishes Guidance Clarifying VAT Compensation for Swimming Facilities

The Norwegian Tax Administration July 5 posted online guidance clarifying the MOF statement on the VAT compensation for the construction and operation of municipal swimming facilities. The guidance includes: 1) a conditional VAT exemption for a municipality’s remuneration from the public; 2) the non-application of VAT compensation where the municipality carries out economic activities that may be in competition with businesses that are not entitled to compensation; 3) the meaning and scope of economic activity; 4) the eligibility for VAT deductions for businesses that rent out a swimming facility to a municipality; and 5) the residual capacity assessment application procedure. ...