When an agreement means that a service is provided for a longer period of time, e.g. various subscription agreements or rental agreements, it happens that the buyer wants to terminate the agreement before the agreement period has expired.
If an agreement means that the buyer has the opportunity to terminate the service before the end of the agreement period, the opportunity to use the service may be terminated in connection with the termination of the agreement or continue during the notice period. Regardless of whether there is an opportunity to use the service and whether this opportunity is used or not, it is a provision of a service.
When a termination of the agreement occurs before the end of the agreement period, the buyer may have to pay an amount to the seller. This amount is part of the compensation for the services that the buyer has been given the opportunity to benefit from even if the buyer chooses not to do so. VAT is therefore included in the additional compensation.
Source: skatteverket.se
