Norwegian Tax Agency Clarifies VAT Treatment for Construction and Transfer of Care Homes

• The Norwegian Tax Administration has clarified the VAT treatment of construction and transfers of care homes.
• A subsidiary engaged in building care homes merged with a housing association established by its parent company.
• The shares in the housing association were sold to the municipality.
• The taxpayer sought clarification regarding its VAT treatment.
• The Tax Agency clarified that the arrangement did not constitute the taxpayer’s direct performance of a service towards the residents.
• The municipality must exercise a real ownership position.
• The taxpayer could not claim certain VAT deductions.

Source: news.bloombergtax.com

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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