Exemptions from tax liability for services relating to credit and credit guarantees and other collateral, VAT

Sales of banking and financing services are exempt from tax.

Services that consist of granting credits are covered by the exemption from tax liability. The Swedish Tax Agency considers that the term “granting of credit” also includes the takeover of a credit when a new person enters as a creditor in the credit relationship with the borrower.

Management of credits provided by the person who granted the credit is covered by the exemption from tax liability. The Swedish Tax Agency considers that the term “the person who has granted the credit” also includes the person who takes over a credit and enters as a new creditor in the credit relationship with the borrower. However, management provided by someone other than the creditor in the credit relationship or, in the case of so-called syndicated loans, by a credit agent who is not at the same time one of the lenders is not covered by the exemption. Syndicated loans refer to a special form of credit which means that several lenders merge and grant one credit.

Mediation and other services relating to credit guarantees and other collateral are covered by the exemption from tax liability. The Swedish Tax Agency considers that only the issuance of collateral, which by its nature is a financial transaction, is covered by the exemption from tax liability. The provision of security must therefore involve a monetary obligation in order to be covered by the exemption.

Management of credit guarantees provided by the person who has granted credit is covered by the exemption from tax liability. The Swedish Tax Agency considers that when the administration is provided by someone other than the creditor in the credit relationship, the service is not covered by the exemption.

Source: skatteverket.se

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