Sweden Tax Court Issues Advance Notice Clarifying VAT Rules for Leased Housing Modules

The Swedish Tax Court Jan. 27 issued Advance Notice No. 62-25/I, clarifying VAT rules for leased housing modules. The taxpayer, a lessor of mobile housing modules, planned to lease the modules to municipalities and private property owners for use as student housing and nursing homes. The modules were assembled on site, mounted on foundations, had ducts for utilities, and were subject to time-limited building permits. The taxpayer sought clarification on VAT treatment and input VAT deduction rights. Upon review, the Tax Court found that: 1) the leasing of the modules wasn’t the leasing of real estate for VAT purposes because ...