Norwegian Tax Ruling Clarifies VAT on Care Homes and Staff Residences

• The Norwegian Tax Administration issued a binding advance statement on VAT for constructing and transferring care homes with staff residences
• A taxpayer’s parent company formed a housing association which later merged with the taxpayer
• After selling the housing association’s shares to a municipality, the taxpayer sought clarification on input VAT deductions
• The Tax Agency stated that establishing a condominium with a housing association that includes a personnel base with shared ownership qualifies for VAT compensation
• However, a condominium that only houses staff does not qualify for VAT compensation on construction costs unless it serves residents needing constant health care or over 80 percent of residents qualify for such services

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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