Withdrawal VAT on construction and sale of homes in-house, proportional deduction (insignificance rule)

The case concerns the calculation of withholding tax for the period 2013 – 2015 in connection with the construction and sale of new homes for own account, cf. the Value Added Tax Act § 3‑26. A total of NOK 1,220,101 has been recalculated. The amount appealed amounts to NOK 536,047 of this.

In addition, the case concerns the right to a deduction for input VAT on joint acquisitions, cf. the Value Added Tax Act § 8‑2 third paragraph. The question is whether the 5% rule should be considered for each individual year or as an average calculation based on several years.

The case also concerns the imposition of additional tax with 20% of the recalculated amount, cf. the Tax Administration Act § 14‑3. The additional tax levied amounts to a total of NOK 244,101. The additional tax is appealed in its entirety.




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