Sweden Tax Agency Clarifies VAT Exemption for Ships Sailing on High Seas

The Swedish Tax Agency June 9 issued Statement No. 8-2376811, clarifying the VAT exemption of ships sailing on high seas. The tax agency clarifies that: 1) the VAT exemption applies when the ship is predominantly used on the open sea; 2) the ship is primarily employed at sea, either when over half of its voyages in a given year occur on the open sea or when over half of the total distance it covers in nautical miles during a year is spent on the open sea; 3) a person hiring a manned ship through a charter agreement is considered to ...