New ruling – VAT liability for co-location services

Overruling earlier precedent, the Swedish Supreme Administrative Court decided, in a ruling from 4 February 2021, that the supply of connectivity, capacity and space in a data center should not be exempt from VAT liability as letting of immovable property. The ruling aligns Swedish law with the reasoning of the European Court of Justice (CJEU) in the recent A Oy case and is positive news for the Swedish co-location and data center industry.

Source Baker & McKenzie

See also ECJ C-215/19 (Veronsaajien oikeudenvalvontayksikkö – A Oy) – Judgment – Colocation services are not “real estate related” services



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