Tax Appeal Board Grants Partial VAT Deduction for Accommodation Costs in Barracks

• The case involves a deduction for input VAT on expenses for accommodation in barracks.
• The disputed amount is 1,601,155 NOK.
• The Tax Appeals Board Secretariat recommends partially granting the taxpayer’s appeal by allowing a deduction for accommodation costs at a specific location.
• The appeal is upheld.
• The company is registered in the VAT Register since 1981 and operates in maintenance services and installation of insulation products, mainly in the oil and gas sector.
• Employees and hired personnel are accommodated in barracks at various industrial sites.
• The company submitted documentation during the audit, including invoices and details of overnight stays.
• The barracks are operated by an external party and are billed with a low VAT rate.
• Documentation shows 38,006 overnight stays at two locations during the audit period.
• The overnight stays are mainly related to a framework agreement with a specific company.

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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