HFD Judgments on VAT Treatment of Community Associations’ Services to Members, 2024-02-27

• HFD has ruled on whether community associations that manage a common facility and have members pay their share of the costs should be considered as providing goods or services to their members
• HFD concluded that the contributions collected from members in a community association do not constitute a transaction subject to VAT
• The position of the Swedish Tax Agency on community associations providing goods and services to their members does not align with HFD’s rulings and will be updated
• VAT is only applicable when the seller is a taxable person acting in that capacity
• Contributions paid by members in community associations are for the costs of the common facility and are not considered compensation for goods or services provided by the association
• Community associations that provide goods and services for a fee to members or outsiders should be registered for VAT
• The Swedish Tax Agency’s position on community associations and VAT will be updated following HFD’s rulings.

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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