Sweden Tax Agency Clarifies VAT Treatment of Financial Leasing Agreements (Corrected)

The Swedish Tax Agency Aug. 19 issued Position Statement No. 8-272671-2025, clarifying the VAT treatment of financial leasing agreements. The clarification explains that: 1) a financial leasing agreement is considered a supply of goods when it’s clear from the agreement that ownership will transfer by either obligation, purchase option, or assignment to another buyer at the end of the contract period; 2) a purchase option with a low buy-out price compared to the market value makes it economically obvious that the lessee will acquire the goods, qualifying the transaction as a supply of goods; and 3) when financial leasing is treated ...