Sweden Clarifies Input VAT Apportionment Rules for Mixed Activities in New Tax Agency Statement

• The Swedish Tax Agency clarified input VAT breakdown rules for mixed activities.
• Input tax division must be based on reasonable grounds reflecting resource consumption, but taxpayers may use the VAT Directive’s annual turnover method instead.
• The VAT Directive can be used if an acquisition is partly subject to deduction limits and used equally for non-deductible transactions.
• For acquisitions used in both economic and non-economic activities, input tax should be divided based on resource consumption.
• This statement replaces the 2024 Position Statement No. 8-2749853.

Source: news.bloombergtax.com

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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