Maintenance Consideration – Concept of Capital Goods under VAT Law

• The principle statement discusses the concept of “tenkt vedlikehold” in relation to capital goods under the VAT law
• Capital goods are defined as machines, equipment, and real estate that meet certain criteria
• The distinction between repairs/maintenance and upgrades is based on the tax law’s definition
• The issue at hand is whether the concept of “tenkt vedlikehold” should also apply to VAT regulations
• “Tenkt vedlikehold” allows for immediate deduction of costs that would otherwise be considered upgrades
• Examples are provided to illustrate how this concept applies in different scenarios

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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