Sweden Tax Agency Clarifies VAT Refunds for Transactions in Other EU Countries

The Swedish Tax Agency Jan. 11 clarified VAT refunds for taxpayers in Sweden carrying out transactions in other EU countries. The agency clarified that: 1) transactions between one taxpayer established in Sweden and in another EU country doesn’t qualify as turnover; 2) input tax on costs and the right to refund for transactions between sections of one entity depend on the turnover in the other EU country; 3) refunds are allowed in Sweden if the transaction would be taxable or eligible for a refund, if it took place wholly in the other country or Sweden; and 4) distributions must be ...