Sweden Tax Agency Issues Guidance on VAT Application in Limited, Trading Partnerships

The Swedish Tax Agency Dec. 5 issued Statement No. 8-3192283, clarifying the application of VAT in limited and trading partnerships. The taxpayer sought clarification on when services provided through partners are subject to VAT. The Tax Agency clarified that: 1) co-owners must agree to run a joint business, and services provided by partners are subject to VAT if a partner acts independently; 2) partners providing services beyond necessary management are considered independent and subject to VAT, while services that are a necessary part of management are not subject to VAT; 3) a direct connection between the service and compensation is ...