- The content on the page has been updated regarding the division of input value-added tax (VAT).
- If a purchase only allows for partial deduction, the input tax should be divided.
- The division should be done according to the provisions in the VAT Act, unless the taxable person invokes the VAT directive with direct effect.
- If the actual use is not known at the time of acquisition, the input tax should be divided based on a reasonable basis.
- The division should reflect the resource consumption in the business as much as possible.
- If a taxable person has establishments in multiple countries, only the outgoing transactions in the establishment(s) related to the input tax should be considered.
- In certain situations, multiple divisions may be necessary to determine the resource consumption for a specific acquisition.
- An example is when a company has establishments in multiple countries and a purchase is used by one establishment for supporting work for another establishment.
- In such cases, a division based on internal invoicing may be more appropriate.
- The percentage for the deductible portion should be calculated with at least two decimal places.
- When calculating the deductible portion, only the turnover related to the acquisition should be considered, even if the VAT directive is invoked with direct effect.
- An example is given of a company with establishments in five EU countries purchasing desks for 500,000 SEK, with VAT of 100,000 SEK.
- The desks are used solely by the employees of the establishment in Sweden for the entire establishment’s operations.
- The establishment in Sweden also performs supporting work for the establishment in Denmark regarding all activities in the Danish establishment.
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.
