Sweden Tax Law Board Clarifies Input VAT Deductions for Utilities in Residential Building

The Swedish Tax Law Board June 8 issued an advance notice clarifying input VAT deductions for the purchase and installation of utility distribution and measurement systems in residential buildings. A taxpayer began construction of tenant-owned apartments, each with individual water and electricity measurement meters. The taxpayer claimed VAT input deductions for the installations, as the assets are used for business activities. The tax agency claimed that such assets are integral part of a residential building, and therefore subject to the deduction ban for private expenses related to permanent housing. The tax board found that: 1) the supply of utilities and ...