The guidance discusses the issue of disputed manufacturing contracts and the provisions regarding adjustments for value-added tax (VAT). The main concern is the timing of reporting outgoing and incoming VAT in tax returns when dispuTax point (when the chargeable event occurs),Reporting / Compliancetes arise. The article refers to new regulations for reporting VAT in disputed manufacturing contracts and seeks clarification on how these rules affect the application of adjustment regulations. The discussion revolves around the determination of the amount of VAT to be recorded as incoming VAT for the production or acquisition of capital goods, which is crucial for future VAT adjustments. The article presents two examples to illustrate the evaluation. The legal basis for the discussion is provided, including relevant sections of the VAT regulations. The aim of the new timing rule is to alleviate the financial burden on sellers/contractors in dispute situations, ensuring they are not required to pay VAT that has not been received from buyers/clients. The article also mentions the purpose of adjustment rules, which is to ensure that VAT deductions reflect the connection of capital goods to taxable activities over time, not just at the time of acquisition.
Source: skatteetaten.no
