Position statement: Right to deduct input tax on acquisitions and a conton before the voluntary tax liability

New: 2022-12-15

In the period before voluntary tax liability begins, a property owner may have incurred costs relating to the construction or reconstruction of a building or other facility that is property to be rented out.

Acquisitions that are new, additions or rebuilds

The right to retroactive deduction includes the input tax on acquisitions attributable to new, extension and reconstruction that the property owner or a previous owner of the property carried out or had carried out. It is the nature of the acquisitions that determines whether it is a new, extension or reconstruction.

Acquisitions that are part of a new, extension or rebuild

The Swedish Tax Agency considers that the rules on retroactive deduction for input tax on acquisitions and a conton before the voluntary tax liability also apply to acquisitions that can be considered as part of a new, extension or reconstruction.

As part of such a new, extension or reconstruction is meant the acquisition of services that are directly related to the construction measures that involve a new, extension or reconstruction of a building or other facility that is real estate. By direct connection is understood in this context that the measures are necessary for and can only be used for the new, extension or reconstruction of the particular building that will be rented out.

Stages in a new, extension or reconstruction can be, for example, planning services, project management services, construction consultancy services or architectural services.

Separately acquired services cannot be part of a new, extension or reconstruction if they are not directly related to the construction measures that involve a new, extension or reconstruction of a specific building. Therefore, services relating to e.g. the land or another building or services of an advisory and research nature, without direct connection to the specific building, be part of a new, extension or reconstruction of the specific building or other facility that is real estate.