Source Skatteverket
Unofficial translation
State aid for rent discounts
The landlords who have reduced the fixed rent for their tenants in certain vulnerable industries can apply for support to compensate for part of the rent reduction. When renting a premises that is subject to tax liability, the accounting is affected by VAT.
The government has listed which industries are covered by the rent subsidy .
VAT on support at a discount on rent
The state aid is a so-called subsidy that is directly linked to the price . This means that the support is included in the tax base and is treated as part of the total rent compensation for the rental to the tenant. If a landlord is liable to VAT for renting a premises, VAT must therefore be levied on all rent compensation, ie also on state aid. See Example: calculation of the tax base .
When renting a room that is subject to tax liability, the rent is normally determined at an amount excluding VAT with a surcharge for VAT. In the case of such agreements, it is the tenant who must pay the VAT also on the amount of support. See also invoicing of the support at a discount on rent.
If the parties, when renting out a premises that is subject to tax liability, have determined the rent to an amount that includes VAT, the aid may also be considered to include VAT. See the Swedish Tax Agency’s position on the appearance of the invoice when the subsidy is directly linked to the price .
Landlords
If a landlord reduces the taxable rent to a tenant in one of the industries covered by the rent subsidy, the reduction made will consist of two parts: one part which is the aid and one part which is a price reduction .
Invoicing obligation
The landlord shall not issue an invoice to the contributor who pays the state subsidy for rent rebates, but shall only invoice his tenant. Since this is a so-called contribution that is directly linked to the price, it is not a question of a turnover to the contributor, but only a turnover from the landlord to the tenant. See Example: state aid for discounts on fixed rental costs .
There is no deadline in ML for issuing invoices when renting premises. See Other sales .
Invoicing of the support at a discount on rent
In cases where the tenant is to be charged VAT on the aid, the landlord can in one and the same invoice state information about both the discounted rent and the VAT on the future state aid. If the landlord wants, VAT can instead be levied at 25 percent on the state support, the tenant is charged afterwards. What information must be in an invoice, see The contents of an invoice.
See Example: state aid for discounts on fixed rental costs .
Reduction of previously reported outgoing tax
If a taxable landlord has already reported outgoing VAT on the rental and then makes a rent reduction, the outgoing tax may be reduced by an amount corresponding to the VAT on the reduction (see Reduction of the price ). This does not apply if the parties have agreed that the price reduction shall not reduce the tax base when the reduction is made after supply.
In order to be able to get the outgoing VAT on the rent reduction back, a credit note is required.
Reporting of VAT on state aid
The outgoing tax on state aid for discounts on rent must be reported according to the method that the landlord applies for his reporting. Different times for reporting VAT apply to the invoicing method and the closing method .
The landlord applies the invoicing method:
The outgoing tax shall be reported for the accounting period during which the person who according to ch. Section 2, first paragraph 1, sales of a good or service in accordance with good accounting practice have booked or should have booked sales (Chapter 13, Section 6 ML).
Accounting for a business event depends on which accounting standard a landlord uses. The Swedish Tax Agency considers that the time for revenue recognition of the rent subsidy for those who apply the K2 / K3 regulations and international accounting standards is when the conditions for receiving the subsidy have been met and the landlord applies for the subsidy. In the case of sole traders who use the K1 regulations, the support must be reported as income when a decision on the support has been made that shows the size of the income or otherwise the funds can be used or the company can dispose of the income in some other way.
According to the Swedish Tax Agency’s assessment, this means that the VAT on the rent subsidy must be reported at the latest for the accounting period during which the rent subsidy must be reported as income as above. However, the Swedish Tax Agency considers that the VAT on rent support can be invoiced for practical reasons and thus reported in previous periods, for example in the accounting period during which a landlord issues a credit invoice regarding the rent discount. This applies provided that the rental service is provided. Otherwise, the rules on advance payment will apply.
The landlord applies the year-end method:
Landlords who apply the year-end method must report outgoing tax on the support for the period during which the tenant pays that VAT (in the case of rental amounts excluding VAT ), or for the period during which the VAT on the support is paid by the state (in the case of rental amounts including VAT ). However, the outgoing tax for all receivables that are unpaid at the end of the tax year must always be reported for the last accounting period during the tax year.
Right to deduct
The right to deduct input tax is not affected by the landlord receiving state support that is directly linked to the price, such as state support for discounts on rent.
Customer loss
Read about what happens in the event of a customer loss when the seller has received a refund directly linked to the price .
Tenants
Anyone who conducts an activity that entails tax liability is entitled to a deduction for input VAT . The right to a deduction also exists for the VAT that is paid on the support, despite the fact that the actual support in the event of a discount from the landlord on the rent has been paid by a third party (see the Swedish Tax Agency’s position on invoice appearance when contribution is directly linked to the price ). Depending on whether the agreed rent for taxable rental is to be exclusive or including VAT, there will be different VAT amounts to pay for the tenant (see VAT on support for discounts on rent and Example: calculation of the tax base ).
The right to deduct shall be substantiated with an invoice as a basis for the right to deduct .
