- The provision in Chapter 13, Section 30, Paragraph 1 of the VAT Act regarding the right to full deduction is based on how the common purchase is used, i.e. resource consumption.
- The compensation in the form of annual turnover can only be used to determine if the taxable person is using the purchase for transactions that qualify for a deduction of more than 95 percent.
- A separate assessment must be made for each individual purchase according to this provision.
- If the taxable person has chosen to divide the input tax according to Articles 173.1 and 174 of the VAT Directive by applying direct effect, the provision in the VAT Act does not apply.
- However, the compensation must always be used to assess whether a taxable person is entitled to full deduction for an acquisition or import where the input tax does not exceed 1,000 SEK, i.e. in an assessment according to Chapter 13, Section 30, Paragraph 2 of the VAT Act.
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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