Norwegian Tax Administration Clarifies VAT Treatment for Maintenance and Improvements on Capital Goods

• The Norwegian Tax Administration clarified VAT treatment for capital goods maintenance.
• Repair and maintenance costs for real property are VAT-deductible immediately.
• Improvements must be capitalized and deducted through depreciation.
• Intended maintenance costs on buildings are immediately deductible.
• Taxpayers must assess input tax deduction rights over an adjustment period.
• The approach aligns with previous interpretations and administrative practices.

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.

---

---