Taxable person – demarcation between economic activity and private activity, VAT

A taxable person is a person who conducts a business independently and with the intention of continuously providing goods or services for remuneration. Anyone who wants to be regarded as a taxable person must be able to show with objective circumstances that it is probable that the conditions are met.

In the Swedish Tax Agency’s view, the term continuously means that the purpose shall be to sell goods or services continuously and with a certain frequency. In this context, frequency means the number of sales within a certain time interval. The assessment of whether the requirement for continuous sales is met shall be made on the basis of what is normal for the type of business conducted and what it is for goods or services that are provided.

For activities that border on the private sector, an assessment must be made on the basis of all objective circumstances in the individual case. An economic activity presupposes that a person takes active measures in order to continuously receive income in the form of compensation for selling goods or services in a way that differs from how a private individual acts.

What is considered to be a normal sales frequency in an economic activity depends on what goods or services are sold. An activity that consists of selling goods or services continuously for a fee is characterized by the fact that there is an effort for the income from the sales to cover the costs of the activity. Possible income in relation to the costs of the business is therefore normally of crucial importance. This means that if the price of the goods or services to be sold is low, a higher sales frequency is normally required than for the sale of goods or services that takes place at a high price.

The position also gives examples of objective circumstances that are important in showing that a person is likely to be a taxable person when it comes to activities that border on private activities.

This position replaces the position with the same name dated 31 August 2015, no. 131 378239-15 / 111 . The position statement contains certain clarifications that do not imply any change in substance. However, the new position entails changes in the assessment of when activities with competitions in trotting and canter sports meet the requirements for being an economic activity (section 4.4).




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