Tax Directorate issues binding ruling on VAT in merger/spin-off, including obligations and formal requirements.

• Skattedirektoratet issued a binding advance ruling regarding VAT in connection with merger and demerger
• Conclusion: merger-demerger between Company and Operation 2 does not trigger an adjustment event, but will require Company to calculate withdrawal VAT
• Questions about registration in the VAT register and preparation of adjustment agreements for VAT between Company and Operation 2 are also discussed
• Formal requirements for issuing a binding advance ruling have been met, including payment of a fee
• The binding advance ruling is binding for all instances within the Tax Administration and must be followed in the tax return assessment and implementation of the transaction.

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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