Sweden Proposes Turnover-Based Input VAT Deduction Rule for Mixed Businesses, With Specific Exceptions

• The Swedish Ministry of Finance proposed that deductible input VAT in mixed businesses should primarily be allocated based on turnover.
• This aligns with a Swedish Supreme Administrative Court ruling and the EU VAT Directive, making turnover the main allocation method.
• Alternative allocation methods are allowed if they provide a more precise determination of deductible VAT.
• Exceptions are proposed for certain financial activities and for input VAT related to buildings, where area-based allocation will apply.

Source: schjodt.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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