Recurring fee settlement at newly built premises. Questions about the premises being rented out within six months after completion of the construction project

The case concerns the validity of the tax office’s decision on reversal of deducted input VAT in connection with the construction and furnishing of commercial buildings, cf. the Tax Administration Act § 12-2, as well as the imposition of additional tax of 20%, cf. the Tax Administration Act § 14-3.

The question in the case is whether taxpayers are entitled to a recurring tax settlement for costs related to parts of the building, or whether taxpayers have exceeded the deadline for renting out the building within six months after the completion of the building measure, cf. the VAT regulations § 8-6-2. Below is the question of when the relevant construction measure is to be considered completed, and thus from what time the six-month deadline began to run.

The question in the case is also whether the conditions for the imposition of additional tax are met, cf. the Tax Administration Act § 14-3.

The disputed amount is NOK 793,669, of which net assessed VAT amounts to NOK 661,396 and additional tax imposed amounts to NOK 132,273. 

The Secretariat of the Tax Appeals Board recommends that the taxpayer’s complaint not be upheld. However, it is recommended that the rate for additional tax be reduced from 20 per cent to 10 per cent due to a long stay with the secretariat, cf. the European Convention on Human Rights art. 6 no. 1, cf. the Human Rights Act § 3.

The case has been processed in the general department, and there has been a dissent. The case must therefore be dealt with by the Tax Appeals Board in a large department.