Swedish Tax Court Clarifies VAT on Employer-Subsidized Office Massages as Economic Activity

The Swedish Tax Court issued Advance Notice No. 17-25/I on July 11.
The notice clarifies VAT treatment for employee wellness benefits.
The employer planned to offer subsidized office massages to employees.
Half the cost would be covered by salary deductions, the rest as a tax-free benefit.
The employer sought clarification on whether this is an economic activity under the VAT Act.
The Tax Court determined massages are performed for compensation.
The employer is considered to be carrying on an economic activity.
The remuneration level is economically justified and offered to all employees.
The taxable amount is the remuneration, with no indication of tax evasion.

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.