Norwegian Tax Appeals Board Clarifies VAT on Pedestrian and Cycle Path Expenses

• The Norwegian Tax Administration released a decision on November 8 regarding VAT on construction of pedestrian and cycle paths
• A company sought VAT refunds for constructing paths later transferred to public entities
• The company argued the construction should be considered maintenance, exempt from VAT
• The Tax Office reevaluated the VAT, classifying the work as new construction due to significant modifications, thus subject to VAT
• The Tax Appeals Board partially agreed with the taxpayer
• The Board ruled some expenses were for maintenance and not subject to VAT
• Other expenses were for new construction, requiring a VAT adjustment

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.