Sweden Tax Agency Updates Guidance to Reflect ECJ Judgment on VAT Treatment of Mortgage Sales

The Swedish Tax Agency May 2 updated guidance on the VAT treatment of the sale of mortgages. The updated guidance explains a recent European Court of Justice (ECJ) judgment, which clarified that the organization of sales through the auction of pledged goods wasn’t ancillary to the principal activity of granting the credit secured by the pledge. These ancillary services therefore didn’t share the VAT exemption provided by law for the principal services of granting the credit. [Sweden, Tax Agency, 05/02/24]

Reference: View Updated Guidance. View Index. View ECJ Judgment, Case No. C-89/23.