- The Tax Directorate clarifies that companies in a joint venture with an oil and gas extraction permit on the continental shelf must allocate input VAT deductions based on each company’s actual use of the goods and services.
- The full input VAT cannot be deducted by the operator company alone, even if it makes the purchase, when the operator is the buyer.
- This rejects the so-called “operator model,” where the operator deducts all VAT and then charges the other participants their shares of the net amount.
- The position is based on earlier guidance and confirms that VAT deductions in such arrangements must be distributed among the participants.
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.
