- The state is considered a single legal entity and tax subject.
- The state engages in economic activities and is a taxable person.
- Reverse charge applies when the state purchases construction services.
- This applies regardless of whether the purchase is for economic or non-economic activities.
- The current stance replaces the previous one from October 25, 2021.
- The stance has been revised based on the VAT Act effective July 1, 2023, with no change in perspective.
- Reverse charge rules in the construction sector require certain buyers to report output tax.
- Sellers must determine if the buyer is a taxable person for reverse charge to apply.
- The Swedish Tax Agency provides its view on reverse charge when the state buys construction services.
- A taxable person is one who independently conducts economic activities.
- Economic activities include those by producers, traders, or service providers.
- State activities are not economic if part of official authority unless it distorts competition.
- State does not include state-owned enterprises.
- Those acquiring certain services must pay VAT if they are taxable persons providing such services.
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.
