The company intends to lease passenger cars to be used in operations that consist of two parts. Where one part, turnover of household services, entails tax liability while the other part, turnover of care services, does not entail tax liability. The Supreme Administrative Court rules that if a car is used exclusively in the part of the business that does not entail tax liability, then there is no right to deduct input tax on either the car’s operating costs or leasing fees. If a passenger car is used in both activities that entail tax liability and in activities that do not entail tax liability, all input tax on operating costs can be deducted. The right to deduct half of the input tax on the leasing fees presupposes that the passenger car is used to a lesser extent in the part of the business that entails tax liability.HFD 2021-03-23, case no. 4262-20 ).
Source: skatteverket.se
