Decision: Division of input value added tax

• The input text discusses the division of input value-added tax (VAT) in certain situations.
• If the input tax is partially related to a permanent residence or if the transactions do not allow for deduction, the input tax should be divided.
• Deductions for input tax cannot be granted for the portion that pertains to the prohibition on deductions for permanent residences or for the portion used in transactions without deduction rights.
• If the buyer uses the property for mixed activities, they can choose to use annual turnover as the basis for allocation by invoking the VAT directive with direct effect.
• Skatteverket (the Swedish Tax Agency) believes this applies as long as the prohibition on deductions for permanent residences does not apply.

Source: www4.skatteverket.se

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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