New: 2022-07-08
Community association that builds and manages a community facility
The Swedish Tax Agency considers that community associations that build and continuously manage community facilities for a fee conduct an independent financial activity and that the provision to the members constitutes turnover . It is within the framework of the association’s management assignment to build and manage the community facility. The community association has the right to deduct input tax on its acquisitions according to general rules. The association’s provision to the members is not the rental of real estatebut shall be regarded as the provision of taxable administrative services in accordance with the purpose of the association. The Swedish Tax Agency therefore considers that the prohibition on deductions for permanent residence is not applicable to the association. The fact that the acquisitions in some cases would have been attributable to permanent housing if the members themselves made these acquisitions does not mean that they for the association’s part should be considered attributable to permanent housing (cf. RÅ 2007 note 139 and RÅ 2010 ref 43 ). On the other hand, the prohibition on deductions may apply to the members with regard to the acquisition of the community association’s services.
Source: skatteverket.se
