VAT Deduction Rules for Temporary Worker Accommodation Facilities

• Registered businesses can generally deduct input VAT on costs for acquiring, building, operating, and maintaining temporary barracks used to house employees, hired staff, or seasonal workers.
• This usually applies when the accommodation is tied to project-based or temporary business activities, such as construction, industry, or oil and gas.
• Movable temporary barracks are treated as personal property, not real estate, so the VAT deduction ban for housing-related real estate does not apply.
• No deduction is allowed for private use or use without a sufficient business connection; if the accommodation is resold to workers, output VAT must be charged.

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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