School education and university education is such education that leads to a degree in order to obtain a certain qualification or that makes it possible to obtain an education for the practice of a professional activity. It can also be other activities that relate to teaching given in schools or universities in order to develop students’ knowledge and skills. In order for a service to be an educational service that is covered by the exemption from tax liability, it must be services that constitute compulsory school, upper secondary school or higher education, education that entitles to student aid or certain other grants.
In order to be covered by the exemption, the education must be compulsory school, upper secondary school or higher education, etc., which is organized by the public or by an education provider recognized by the public for the education. The Swedish Tax Agency considers that the general or one of the general education providers recognized for the education should include everyone who, under their own responsibility, provides such education that can be covered by the exemption.
According to the Swedish Tax Agency’s assessment, the seller provides the training at his own risk if the following conditions are met.
- The seller provides the training from its own organizational structure. The seller thus uses its own premises or its own digital platform as well as its own equipment and other personnel needed to provide the service.
- The seller has the overall responsibility for the training.
- The seller can decide when in time the training should be given.
- The seller decides which students will receive the education.
Goods and services that are traded as part of the education are also covered by the exemption from tax liability. This is a stage in education when the following three criteria are met.
- The goods or services must be provided by an education provider who also provides such education services that are covered by the exemption from taxation for education.
- The goods or services must be absolutely necessary for the tax-exempt education services to be provided.
- The basic purpose of the service must not be to generate revenue through activities in direct competition with commercial companies that have to pay VAT.
This position replaces the position “Exemption from tax liability for education, VAT” from 22 January 2018, no. 202 32190-18 / 111 . The position means that subcontractors can usually not be seen as such recognized training providers that provide such training that is covered by the exemption from tax liability.