The Church of Sweden and its organizational parts, VAT

The Supreme Administrative Court has ruled that the Church of Sweden’s provision to the organizational parts did not take place in their capacity as their own legal entities, but the provision did take place within the Church of Sweden’s faith community.

The Swedish Tax Agency considers that the same assessment should be made for supplies between the organizational parts. Thus, there is also no legal relationship that involves a reciprocal exchange of services between independent parties in these cases. This means that transactions between, for example, a diocese and a parish are not subject to VAT.

However, when the various organizational parts in their capacity as legal entities within the Church of Sweden enter into a legal relationship with a third party regarding mutual exchange of services, the transaction is covered by the VAT Act (1994: 200), ML’s scope of application.




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