The Swedish Tax Agency considers that it is a question of compensation for the provision of a service when the buyer terminates an ongoing service, which the buyer has the opportunity to terminate by agreement, and the buyer due to the termination will have to pay an amount to the seller.
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 matter of providing 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. It does not matter whether the amount corresponds or does not correspond to the amount that the seller would have received if the agreement had not been terminated. VAT is included in the additional compensation.
An example of an amount that the buyer will have to pay to the seller if the agreement is terminated before the end of the contract period is the amount that car renters receive from the tenant in the event of termination of the agreement in advance, see further Leasing car returned early .
Another example is the pre-determined amount that a tenant must pay to the landlord if the tenant terminates the lease before the binding period has expired, see also Compensation when the contract expires .
A compensation that the buyer pays due to a contract being terminated before the end of the contract period shall not be equated with such compensation as a seller may be entitled to if a contract is terminated before any service has begun to be provided by the seller (Skatteverket’s position Ongoing services terminated before the contract period has expired ).
Source: skatteverket.se
