- Proposal to allow VAT deductions on light trucks is welcomed but more changes are needed.
- Current car VAT prohibition increases company costs by up to 25 percent.
- This limits vehicle choice, reduces competitiveness, and hinders green transition.
- Rules are complex and result in double VAT, ultimately burdening consumers.
- Car costs are treated differently from other business expenses.
- VAT deduction on rental is limited to 50 percent, and none for car purchases.
- Exceptions exist for certain industries like car sales and rentals.
- General VAT deduction rules apply to buses and heavy trucks.
- Light trucks are disadvantaged compared to heavier, more polluting trucks.
- Prohibition was justified by difficulty in assessing private use at purchase.
- A strict rule was introduced, limiting deductions and disadvantaging businesses.
- Proposal for all businesses to deduct car VAT under general rules.
- Suggests a standard for private use taxation and revising the definition of passenger cars.
- Swedish rules are less favorable compared to countries like Germany and the Netherlands.
- Proposed changes aim to align Swedish VAT handling with other EU countries.
- Improvements are needed for sustainable growth and competitiveness in Sweden.
Source: svensktnaringsliv.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.
