Interpretation of the VAT Compensation Act in relation to construction of care homes

• A developer planned to build care homes and transfer the property to a housing cooperative, which would then sell shares in the cooperative to the municipality.
• The municipality would then sell or rent the shares to residents in need of full-time care.
• The main question was whether the developer could be considered as selling the homes directly to the residents on a social basis, or if the developer was simply delivering to the municipality as a subcontractor.
• The Tax Administration did not consider the arrangement to be a direct service fulfillment from the developer to the residents.
• This was because the municipality would have a real ownership position as an intermediate step in the process.

Source: skatteetaten.no

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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