Sweden Tax Court Clarifies VAT Treatment of Temporary Accommodation Rentals

The Swedish Tax Court July 4 issued Advance Notice No. 107-24/I, clarifying the VAT treatment of temporary accommodation rentals. The taxpayer, a company renting out furnished studio apartments, sought to increase the maximum rental period to four or six months from three months. The taxpayer provided cleaning, breakfast, staffed reception, laundry, linens, and toiletries. The taxpayer sought clarification on whether increasing the maximum stay would render the rentals taxable like hotel room rentals. Upon review, the Tax Court found that: 1) a four to six-month stay is within the timeframes that EU law and Swedish practice consider the provision of ...