Norwegian Data Center Services to Foreign Customers Ruled Subject to VAT as Separate Supplies

• The Norwegian company sought a VAT exemption for its integrated data center operational services to foreign customers, arguing these formed a single, unified service.
• The Tax Office and Tax Appeals Board ruled that the services consisted of multiple independent supplies, each requiring separate VAT assessment.
• The Board found no dominant element to classify the services as a single composite supply and distinguished between remotely deliverable (VAT-exempt) and location-bound (not exempt) services.
• The company’s argument that physical storage services should be exempt as used entirely outside Norway was rejected, as the services were rendered and consumed in Norway.
• The Tax Appeals Board upheld that the physical storage component is subject to Norwegian VAT.

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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