- Input VAT in mixed activities should be allocated based on actual resource consumption, not just annual turnover, if a more accurate method exists.
- Taxable persons can choose to apply the VAT Directive’s rules on allocation by annual turnover instead of Swedish law, following EU Court interpretations.
- When using the VAT Directive, the entire annual turnover of the relevant establishment must be included in the calculation.
- The VAT Directive cannot be directly applied if the purchase is partly for private use, non-economic activity, or subject to deduction restrictions, except for the portion used in mixed activities.
- This statement updates previous guidance and clarifies allocation in cases involving both non-deductible transactions and deduction restrictions.
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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