A jointly registered tax subject consisting of, among other things, six real estate companies (the “real estate companies”) jointly owns a large plot of land which is planned to be developed into a business park for mainly logistics companies. The real estate companies will build buildings on the plot area for rent for taxable activities. The construction of a building presupposes that a site preparation is carried out before the buildings can be built. In addition, an internal road must be built for access to the buildings from the existing county road.
The tax subject wishes to clarify the deadline for recurring tax settlement after the election. § 8-6 for the input VAT the subject will incur in connection with the plot preparation, more specifically how long it can take from the plot preparation and to the lease with taxable tenants must be entered into before the right to return tax settlement is lost. In this connection, the question has been raised as to whether the expenses for the site development are to be regarded as capital goods after the election. § 9-1 second paragraph letter b, or is included as part of the capital goods that are established during the construction of buildings etc. on the plot. Questions have also been raised as to whether the internal road in the area and other infrastructure should be regarded as separate capital goods, and how VAT on land development should be distributed between the capital goods. Finally, it is desired to clarify the deadline in fmval.
The case has been taken under consideration by the Directorate of Taxes as the case is to be regarded as a matter of principle, cf. the Tax Administration Regulations § 6-1-1 third paragraph last point.
Source: skatteetaten.no
