VATupdate

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Position Statement on Damages and VAT No Longer Applies from December 16, 2025

  • The statement “Damages, warranty compensation and similar payments, value added tax” dated April 26, 2023, will no longer be applied.
  • The Swedish Tax Agency explains that compensation of a damages nature is subject to VAT if there is a direct link to the supply of goods or services, following EU court practice.
  • The information in the statement is now available on guidance pages, so the statement is no longer needed.

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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