- Social care services are exempt from VAT if they are mandated by law and provided by public bodies or recognized social actors, with significant public funding.
- For a good or service to be closely linked to social care and thus VAT-exempt, three criteria must be met: both buyer and seller are public or recognized social actors, the good/service is essential for the exempt care service, and its main purpose is not commercial profit.
- The new position replaces the 2021 guidance, aligns with the VAT Act effective July 1, 2023, and does not change the substance of previous rules.
- The Swedish Tax Agency clarifies what constitutes social care services, how to identify recognized social actors, and when goods/services are closely linked to social care for VAT exemption.
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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