Norwegian Tax Agency Clarifies VAT Treatment for Construction Contributions

• The Norwegian Tax Administration has clarified the VAT treatment on construction contributions.
• A municipality was considered the developer for stabilization/security works in a specific area.
• A company agreed to cover most of the cost of the security measures.
• The municipality sought clarification on whether it could collect a construction contribution from the company without output VAT for infrastructure development.
• The Tax Office concluded that VAT must be calculated when collecting construction contributions.
• On appeal, the Tax Appeals Board held that construction contributions are typically not considered turnover within the meaning of the VAT Act.
• Therefore, the municipality can collect construction contributions from the company without output VAT.

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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