- 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.
