- The Supreme Administrative Court of Sweden (HFD) ruled on June 24, 2025, in three cases, confirming preliminary decisions from the Tax Law Board. In case no. 7071-24, HFD determined that the turnover-based calculation method in Article 174 of the VAT Directive (2006/112/EC) can be directly applied for dividing input VAT on shared costs for a housing association with mixed activities. This means the association can choose this method over the Swedish VAT Act’s rules for division on a reasonable basis. The decision partially contradicts the Swedish Tax Agency’s stance from February 2, 2024, which will be reviewed. The court found that the Swedish provision for division on a reasonable basis does not meet EU requirements for clarity and precision, allowing direct reliance on the directive’s method.
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.
