Norway Clarifies VAT Deduction Rules for Temporary Employee Barracks and Accommodations

• The Norwegian Tax Administration clarified that input VAT on costs to acquire, construct, operate, and maintain barracks and similar temporary accommodations for employees, hired personnel, and seasonal workers is generally deductible when used in taxable activities.
• Such accommodations are treated as movable property, so the special VAT cut-off rule for real property used for housing or welfare needs does not apply.
• Deductibility requires that the need for the accommodation be tied to a specific work assignment.

Source: news.bloombergtax.com

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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