Swedish Tax Authority Updates VAT Rules for Electricity Deliveries with Negative Prices

• Swedish Tax Agency publishes update on electricity deliveries that result in successive settlements or payments regarding value added tax dated September 23, 2025
• The Tax Agency considers that Article 64.1 of the VAT directive can be applied with direct effect, meaning taxable persons who want to apply the provision may do so
• For electricity producers applying the VAT directive with direct effect, both positive and negative electricity prices during the period should be considered when determining the tax base
• For electricity producers only applying Swedish tax law rules, only positive electricity prices during the period should be considered when determining the tax base
• The document addresses questions about how VAT should be calculated when electricity prices are sometimes negative due to production exceeding demand on the Nordic electricity exchange

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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