Allocation of Input VAT in Mixed Activities: New Guidelines from 2025 and EU Directive Application

• 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.

---

---