Guideline: State’s Land Lease to Electricity Producer Not Economic Activity, No VAT Applied

• The state does not engage in economic activity when granting an area to an electricity producer without specific compensation.
• Certain public activities are not considered economic activities under specific conditions.
• State and municipalities are a single tax subject; transactions between state organs are not taxable.
• Public activities aimed at meeting internal needs are not economic activities.
• The principle of VAT is to be competition-neutral, not favoring public over private activities.
• New clarification added in 2025 regarding municipal fees related to building permits.
• Legal cases illustrate when public activities are or are not subject to VAT.

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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