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Delivery of certain assets when the input tax at the time of acquisition was not deductible

Delivery of certain assets is according to ch. 10. Section 37 of the Value Added Tax Act (2023:200), ML, exemptions from tax liability if the following two conditions are met. The delivery shall refer to

  • assets other than current assets and
  • the taxable person who supplies the asset must be able to demonstrate that the input tax has not been deductible to any extent on the acquisition of the asset or on more significant acquisitions of goods or services added to the asset.

According to the Swedish Tax Agency, the concept of delivery in the section means that the assets that can be covered by the exception can only refer to goods.

In the corresponding provision in the VAT directive, the exemption covers all kinds of goods, i.e. also goods that are current assets. The Tax Agency considers that Article 136 of the VAT Directive is so clear, precise and unconditional that it can be given direct effect. This applies if it is to the advantage of the person who invokes the provision and if the other prerequisites for exemption from tax liability are met.

This statement replaces the statement Transfer of assets that have been purchased without the right to deduct input tax, value added tax dated 24 August 2018, dnr 202 179878-18/111. The new position has been drawn up due to the new Value Added Tax Act and the position must be applied from 1 July 2023, i.e. when the Value Added Tax Act (2023:200) comes into force. For time before 1 July 2023, the replaced position must still be applied. The position statement clarifies which assets can be covered by the exception and that Article 136 of the VAT Directive can still be given direct effect. The position involves a change as such assets that constitute services cannot be covered by the provision. Remaining that appears from the replaced position can, with regard to the wording of ch. 10. § 37 ML is seen as such information which is only a clarification. The information can therefore appear directly from the Legal Guidance.

Source: skatteverket.se

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