- The term “actually used and exploited” for VAT purposes means it must be clear to the seller at the time of sale that the service will be exclusively used in Sweden; it is not enough that only the buyer knows this.
- The provision should be interpreted restrictively to ensure predictability and not go beyond its intended purpose.
- This position replaces the previous 2014 guidance and has been updated to reflect the VAT Act effective from July 1, 2023, but does not change the substance.
- Services listed in the so-called catalogue, normally considered supplied outside the EU, are taxable in Sweden if actually used and exploited there, especially when the buyer is a non-taxable person.
- The rule aims to prevent double taxation, non-taxation, and distortion of competition, and its application is not affected by how services are treated for VAT outside the EU.
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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