Swedish Tax Agency Clarifies VAT Exemption Rules for Landlords on Supply of Utilities, Vehicle Charging

The Swedish Tax Agency June 18 issued Position Statement No. 8-214432-2025, clarifying the VAT treatment of the supply of electricity, gas, water, and heat by a landlord. The clarification explains that: 1) supplies of electricity, gas, water, or heat are VAT-exempt when charged at a flat rate, because they are treated as part of the rent; 2) supplies based on actual consumption are taxable, because they are separate from rent and under tenant control; 3) electricity for vehicle charging is generally taxable, unless it is part of a VAT-exempt parking rental under specific conditions; and 4) landlords can deduct input ...