Sweden Tax Court Issues Advance Notice Clarifying Tax Rate for Digital Training Subscription Services

The Swedish Tax Court Oct. 11 issued Advance Notice No. 40-24/I, clarifying the tax rate for digital training subscription services. The taxpayer, a company, provided a subscription for access to live and on-demand training sessions. The taxpayer sought clarification on whether the subscription service qualified for the reduced 6 percent sports services tax rate. The Tax Agency held that the subscription service was subject to the normal 25 percent tax rate because even though the live sessions qualified for the reduced rate, the on-demand sessions did not, concluding that the two sessions constituted a single indivisible economic provision due to ...