The case concerns the determination of input VAT on joint procurements, cf. the Tax Administration Act § 12-1. Questions about “credit costs” that are explicitly exempted from outgoing VAT according to the VAT Regulations § 4-2-1 shall be considered as part of the “business’ total turnover” in relation to the VAT Act § 8-2 first paragraph, cf. the VAT Regulations § 8-2-2, including whether “credit costs” are to be regarded as taxable or tax-exempt sales.
There are also questions about the right to change and whether the conditions for imposing 20% additional tax are met, cf. the Tax Administration Act § 14-3.
The disputed amount is VAT of NOK 5,508,529 and additional tax of NOK 1,101,705.
The Secretariat of the Tax Appeals Board recommends that the taxpayer’s appeal is not upheld, but that the additional tax is reduced from 20% to 10% as a result of a long stay, cf. ECHR Article 6 no. cf. the Human Rights Act §§ 2 and 3. The secretariat has been in doubt about the conclusion.
The Secretariat points out that taxpayers in addition to the present case have four further similar complaints pending and which concern the correction of mainly VAT notifications for the period after 2016 and up to and including the first term 2018. This applies to cases with case number [… ], […], […] And […]. To ensure that the right to change does not lapse, additional notifications have been submitted with increased deductions in line with the taxpayer’s principal allegations in this case. However, it has been requested that these cases be put on hold until the present case has been processed in the Tax Appeals Board.
Source: skatteetaten.no
