Sweden – VAT exemptions on internal services | VAT Systems

The tax authorities have clarified that the application of certain VAT exemptions on internal services must be interpreted restrictively and is only applicable where:

– The services are provided at cost price and that the exemption does entail a distortion of fair competition standards;
– The internal services are provided by an independent group;
– The members of the group conduct activities that do not generate tax liability and
– These internal services are those necessary to carry on the activities of their recipients in the group.