Sweden Tax Agency Issues Guidance Clarifying Criteria for VAT Exemption on Temporarily Imported Goods

The Swedish Tax Agency June 26 issued Statement No. 8-2956586, clarifying the criteria for a VAT exemption on temporarily imported goods. The taxpayer sought clarification on when a transfer of goods could be exempted if the goods are for temporary use in providing services in Sweden. The Tax Agency clarified that: 1) when a taxable person transports goods between EU countries for business purposes, it is considered a taxable transfer, equated with a supply of goods for consideration, and treated as an intra-Union acquisition; 2) the cross-border transport of goods to Sweden isn’t considered a transfer if the specified criteria ...