The Law On Compensation Of The Value Added Tax For Municipalities, Counties, Etc. (Sales Tax The Compensation Law)

Original Language Title: Lov om kompensasjon av merverdiavgift for kommuner, fylkeskommuner mv. (merverdiavgiftskompensasjonsloven)

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Read the untranslated law here: https://lovdata.no/dokument/NL/lov/2003-12-12-108

The law on compensation of the value added tax for municipalities, counties, etc. (sales tax the compensation law)

Date law-2003-12-12-108 Ministry the Ministry of finance Recently changed law-2016-06-17-41 published in 2003 booklet 16 entry into force 01.01.2004 changes the LAW-1995-02-17-9 Announced short title sales tax the compensation law cf. the previous law 17. February 1995 No. 9. The Act's title changed by law 17 June 2016 Nr. 41. section 1. Purpose the purpose of this law is to counter the competition as a result of twists merverdiavgifts through the system that it is granted compensation for value added tax to the municipalities, county councils and certain private and nonprofit businesses.

§ 2. Scope this law applies: a) municipalities and county municipalities with municipal and county municipalities business where the top authority is the local Council, the County Council or other control or advice according to the Municipality Act or municipal special legislation, b) interkommununale1 and interfylkeskommunale associations organized by the Municipal Act or any other municipal special legislation, c) private or nonprofit that produces health and care services, educational services or social services that the municipality or County is required to perform by law , d) day care as mentioned in law 17. June 2005 Nr. about section 6 64 kindergartens, e) ecclesiastical joint Council.

This law does not apply to private practice general practitioners and private practice physiotherapists.
The business should be registered in the device registry.

§ 3. Compensation compensation is provided for sales tax for purchases of goods and services from the registered trader.
It also provided compensation for sales tax paid on the importation of goods from overseas, Svalbard and Jan Mayen and for sales tax for purchases of services from abroad, Svalbard and Jan Mayen.

§ 4. Compensation shall be paid only in the limits the extent to which the acquisition happens to use in the kompensasjonsberettigede business.
It provided no compensation: 1. When there is a right to deduction for sales tax receivable under the provisions of the VAT Law Chapter 8.

2. value added tax on acquisitions as stated in the VAT law section 8-3 and § 8-4.

3. value added tax on acquisitions to building, construction or other real property for sale or rental.

4. when the businesses as mentioned in section 2 first paragraph, LITRA a and b drives the economic activity and this activity may be in competition with businesses that are not kompensasjonsberettiget.

5. value added tax on acquisitions for 10,000 dollars or more that are not paid via bank or company with the right to operate the payment processing. The VAT law section 8-8 also applies as far as the fit.

Compensation is granted anyway for procurement to the housing with health purposes or social purposes. The same applies to private facilities in relation to the housing.

§ 5. Funding the total amount be compensated under section 3 shall as a rule be funded through the reduction in transfers to municipalities and county municipalities.

section 6. Submission of the task to get compensated sales tax, it must be sent to the task the tax office. The compensation task to be submitted electronically.
It can not be filed a claim for compensation before the sales tax costs in a calendar year account for at least 20,000 kroner.
The compensation task is sent periodically. Each period includes two calendar months. The first period of January and February, another period in March and april, the third period may and June, the fourth period July and august, fifth period of september and October and the sixth period of november and December. Businesses as mentioned in section 2 letter b-e may set requirements that include a whole calendar year on the task for the sixth period.
Claims for compensation are included in the task for the period amount is recorded in the accounting system after the financial provisions imposed by law, 25. September 1992 No. about 107 municipalities and county municipalities or posted in the fiscal system under the provisions of law 19. November 2004 Nr. 73 about posting (posting law) or in the regulations given in pursuance of the law.

section 7. The task deadline task must be arrived at the tax office within 1 month and 10 days after the end of each period. The deadline for the 3. period of time, may and June, yet the 31. August.
Claim for compensation for the value added tax on acquisitions made in the course of a period can be made at the earliest by the period's expiration.

section 8. Auditor certificate basis for compensation the claim to be checked and attesteres of registered or chartered accountant or local government auditor.

§ 9. Payment of compensation Compensation under this Act shall be paid out within 3 weeks after the time limit under section 7 to submit task is expired. If the compensation task is received after the expiration of the time limit in section 7 to the claim is rejected. With the limitations imposed by section 10 requirement can be included in the job for a later period. For claims that are included in the task for a later period, the compensation is paid out within 3 weeks after the deadline for this period is expired.

§ 10. The obsolescence deadline for their aging claims for compensation are congruent, jf. section 6, third paragraph, with the deadline to submit your task for the sixth period the following year.
For businesses as mentioned in section 2 letter a is the aging time limit coincide with the deadline to submit the task for the next period.
The aging time limit after the first and the second paragraph begins to run on the date the compensation amount is or should have been registered in the accounting system under the provisions of section 6, fourth paragraph.
The limitation period is interrupted only by submitting of the compensation task under the provisions of this law.

section 11. Refund If it is paid out compensation in violation of the provisions of this Act or the regulations subject to the legal authority of this Act, to the incorrect amount disbursed will be refunded.
The claim for a refund with the addition of interest is enforceable for disbursements. The claim is enforceable even if the basis is appealed or before the courts.

§ 12. Accounting and control The that have promoted claims about or received a refund should adapt the posting so that it can be controlled at any time that the compensation for value added tax shall be paid according to the rules of this Act. The provisions relating to storage of accounting law 19. November 2004 Nr. 73 about posting (posting law) also applies to those who are not posting obliged after posting the law.
The who has put forward demands for or received a refund under this Act shall on request disclose, divulge or submit your registered and documented accounting information, accounting and other documents of significance for the control when the tax authority. It should also be given full details of the conditions such as tax authorities find may have significance for the control.
The one that promotes the claim for compensation under this Act shall provide the necessary guidance and assistance and give access to business premises. The same applies to the one in the service of, or assists an applicant for compensation.

section 13. Control of seller in connection with the control under section 12 to be employed, when tax authorities demand it, give the information required to take control of that compensation for value added tax shall be paid according to the rules of this Act. Employed to give the tax authorities on the rental/sales value information about any balances that he has or has had with other named trader when it relates to both parties ' business. It may be required information on and specified tasks over the supply of goods and services. It may also be required information and specified tasks of the consideration and whether the other conditions that relate to the mellomværendet. Trader to submit on the gjenpart rental/sales value of commercial task, the annual report and the annual report.

section 14. Reshuffle the tax office may require paid out compensation corrected in up to 10 years from the time of the payment of the compensation.

section 15. Interest will be paid compensation later than the deadline set forth in section 9 has the kompensasjonsberettigede requirements on interest rates. There is not claim interest if they exceeded them by the deadline for payment is due to circumstances that can be added the kompensasjonsberettigede to download or as this is the closest to bear the responsibility.
Compensation is given interest from the day the time limit for the processing of the claim under section 9 has expired and even the day the compensation amount paid out.
For compensation to be repaid after correction is calculated interest from the day the compensation amount was paid out and even the day back payment is made.
For the payment of compensation under section 9 to be the interest rate will be equal to the rate set out in pursuance of the law 17. December 1976 No. 100 about interest rates by late payments and section 3 the first paragraph first sentence. For repayment of too much paid out compensation under section 11 to the interest rate will be equal to the monetary policy rate so this is set by the Norges Bank per 1. January the year attributed to one percentage point.

section 16. Adjustment of the compensated sales tax It will be adjusted for offset value added tax by changes in the use or transfer of building, construction or other real estate after the acquisition, representation or execution. It pliktes not to make adjustments more than 10 years from the end of the year the acquisition, representation or execution was made.
The Ministry sets out closer to the rules for the adjustment of the regulations.

§ 17. Administration Compensation Scheme is administered by the tax authorities by the tax office.


§ 18. Regulatory authority the Ministry may give closer regulations about restrictions, the completion and implementation of the provisions of this law, including whether the calculation, payment, interest rates, a breakeven point and control of the compensation amounts, as well as on the requirements to the content of the seller's sales document. The Ministry may further give closer regulations about the kompensasjonsberettigedes obligation to even check and revise the arrangement.

§ 19. Punishment By violating this law or regulations given in pursuance of this Act applies to the criminal provisions of the merverdiavgiftsloven1 section 21-4 accordingly.

section 20. Transitional demands for compensation for the value added tax on acquisitions made in the course of the first period can be made at the earliest in 2004 on the task for the second term of 2004.

§ 21. The entry into force. Repeal of previous law this law enters in force from 1. January 2004. From the same time repealed law 17. February 1995 No. 9 about compensation for value added tax to the municipalities and county municipalities, etc.