A precondition for VAT to be levied on the sale of goods or services is that the seller is a taxable person who acts in this capacity. In order for someone to be considered such a person, he or she must independently conduct financial activities.
The Swedish Tax Agency considers that a board member of a limited company, a financial or a non-profit association (hereinafter only an association) does not act in his own name, on his own behalf and on his own responsibility when he performs his board assignment. Such an activity is not conducted independently for VAT purposes.
This means that a member of a company or an association’s board is not a taxable person who acts in this capacity. This applies to all work that takes place within the framework of the board assignment and even if the board member independently conducts another activity in addition to the board assignment.
This position replaces the position “Taxable person – assignment as a board member in a limited liability company, VAT”, 2020-10-09, no. 8-512039 . The position has been supplemented with an assessment of board assignments in associations. In the case of board assignments in limited companies, the position does not entail any change in substance.