Compensation for VAT for private college

Justice: Øie, Webster, Noer, Høgetveit Berg, Steinsvik

The Tax Directorate had ordered a private college to repay VAT it had received as compensation for VAT under section 3 cf. section 2 subsection 1 c of the VAT Compensation Act. The right to compensation depended on whether the school offered an education that the county authority was imposed to offer by law. The Supreme Court found that it is not a condition for compensation that the education fulfils the county authority's duty to offer education in such a manner that the student loses his or her legal right to education from the county authority. It was also stated that the scope of the county authority's obligations, as they had been laid down in regulations and circular letters, was so specific that it had to define what the county authority had a legal obligation to ensure. The concrete education services offered by the college were not duties that fell within this scope. The District Court's judgment, given in favour of the State, was upheld.