Exemption of Value Added Tax for Infrastructure Development: Case of A Municipality vs B AS

• The case involves a complaint about a binding preliminary ruling (BFU) regarding whether A municipality can charge B AS a construction fee without VAT for the development of infrastructure.
• The tax office concluded in the BFU that A municipality should calculate VAT when charging B AS a construction fee for the implementation of security and stabilization measures.
• The complaint is accepted.
• The case involves the possibility of using the construction fee model, where A municipality is entitled to VAT compensation for the costs incurred as a developer for security and stabilization measures, while also charging B AS a construction fee without VAT.
• The request also seeks clarification on whether the security and stabilization measures being built are covered by the adjustment provision.

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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