Sweden Tax Court Issues Advance Notice on VAT Treatment of Payment Reminder Amounts

The Swedish Tax Court Nov. 8 issued Advance Notice No. 48-24/I, clarifying VAT on the amount added because of a payment reminder and the difference between the unit and package prices. The taxpayer, a company that provided group photos and portraits, offered a package of five images with a 20-day return option, and sold them at a unit price or package price. Additional fees and price differences were applied if a payment reminder was issued. The taxpayer sought clarification on including these differences in the taxable amount for VAT. The Tax Court clarified that the additional amounts should be included ...