Sweden Tax Agency Issues Statement Clarifying Input VAT Deductions on Catering Expenses Associated With Entertainment

The Swedish Tax Agency April 22 issued Position Statement No. 8-125142-2026, clarifying input VAT deductions on catering expenses associated with entertainment. The clarification explains that: 1) when the meal expense exceeds 300 Swedish kronor (US$32), excluding VAT, per person and occasion and includes goods or services subject to different rates, the input VAT deduction is proportioned to the different rates based on actual costs, excluding VAT, for each part at each occasion; 2) standard input VAT deductions are 46 kronor (US$4.97) per person and occasion if the cost of food only includes supplies at 12 percent and 25 percent rates, ...