VAT Classification of a Dukhall as Real Property or Movable Property

• The case concerned whether a leased Rubbhall/dukhall should be treated as real property or movable property for VAT purposes under Norwegian VAT Act section 3-11.
• The tax office assessed additional output VAT of NOK 421,065 and a 20% penalty tax of NOK 84,213 after treating payment for termination of the lease as consideration for the hall’s sale.
• The taxpayer had leased the hall since 2021, then sold the underlying property in 2024; the lease could not be transferred, so it was terminated and paid out as part of the sale settlement.
• The tax authority viewed the hall as not being real property and therefore subject to VAT on the amount paid to take it over.
• The complaint was upheld, meaning the taxpayer’s appeal succeeded.

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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