Sweden Tax Agency Explains Input VAT Deductions by Residential Buildings Associations for Solar Plant Investments

The Swedish Tax Agency Nov. 4 issued guidance on input VAT deductions for solar plant investments by a residential building association, stemming from three Supreme Administrative Court decisions. The cases involved the association taking a VAT deduction for the sale of two-thirds of the electricity produced by a solar plant mounted on the roof of their residential building. The court allowed the deduction because: 1) it’s related to the acquisition of the solar plant, which is attributable to the taxable sales of electricity; and 2) the use of a part of the electricity by the residential building itself doesn’t mean ...