Sweden Tax Agency Clarifies VAT Liability on Imports Concerning Elimination of Customs Debt

The Swedish Tax Agency June 16 clarified the VAT liability on imports concerning the elimination of the customs debt. The agency clarified that: 1) VAT liability arises at the same time as the customs debt arises in Sweden, or would have arisen if the goods had been subject to customs duties on import; 2) taxpayers are required to pay VAT even if the customs debt is eliminated because of the confiscation of goods; and 3) the general rule must apply concerning the tax authority, payment of the VAT on the importation, and tax liability if the seller doesn’t use the ...