VAT for harness racing

Justices: Webster, Bull, Bergsjø, Høgetveit Berg, Lindsetmo

The VAT Appeals Board had reassessed outgoing VAT for a jockey's fixed pay for each race (oppsittpenger) and his shares of the cash prizes won, see section 3-1 subsection 1, cf. section 1-3 subsection 1 (a) of the VAT Act. The Supreme Court concluded that the payments were taxable income from sale of services, and that the decision was valid. The fixed payments for each race were considered a form of start money (startpenger). The Court referred to the fact that a fixed and clear public administration practice assumed that start money in a competition constituted payment for a service and thus taxable income. The share of the cash prize was considered payment from the horse owner for the service the jockey delivered by driving the horse in harness races, which also constituted taxable income. The decision was also not invalid due to violation of the principle of equal treatment.