Sweden Tax Court Issues Advance Notice Clarifying Input VAT Deduction Limitation Rules for Permanent Residences

The Swedish Tax Court Dec. 17, 2025, issued Advance Notice No. 54-25/I, clarifying input VAT deduction limitation rules for permanent residences. The taxpayer, a company, owned a residential building, a commercial building, and a parking garage. The taxpayer was considering leasing the buildings and garage spaces to residential and commercial tenants. The taxpayer sought clarification on whether the input VAT deduction limitation for permanent residences applied to costs related to the garage. Upon review, the Tax Court found that: 1) the garage’s design and actual use showed that it wasn’t in a permanent residence, because it was clearly separated from ...