Sweden MOF Issues Memorandum on Proposal to Amend Input VAT Deduction Rules for Mixed Activities

The Swedish Ministry of Finance Dec. 4 issued Memorandum No. Fi2025/02219, on a proposal to amend rules on the allocation of input VAT deductions for mixed activities. The proposal includes measures to: 1) allow taxable persons using goods and services in economic activities to only deduct the proportion of input VAT attributed to the transactions giving rise to a deduction right, and require calculation of the input VAT based on turnover; 2) introduce preliminary and final proportion calculations with year-end adjustments; 3) amend the deduction allocation rule to not cover input VAT if the allocation is due to VAT partially ...