Sweden Tax Law Board Clarifies Input VAT Deductions on Leased Passenger Cars

The Swedish Tax Law Board June 29 issued Advance Notice No. 58-19/I, clarifying input VAT deductions on leased passenger cars. The company provided care and household services and operated with leased cars. The company claimed full deductions on operating costs and a 50 percent deduction on leasing fees for four cars. The tax agency claimed the company was eligible for deductions on operating costs only for cars that warranted some tax liability. The tax board found: 1) the company is entitled to deductions on cars used for both taxable and non-taxable transactions; 2) the company isn’t entitled to deductions on ...