New: 2022-02-15
A community association is formed by the members of the association and the association is commissioned to manage the community facility that is formed in connection with a facility decision being made. A community association can acquire rights and assume obligations and is therefore an independent legal entity with its own legal capacity which can be a tax subject in terms of VAT.
The Swedish Tax Agency considers that community associations that continuously manage community facilities for a fee conduct an independent financial activity. In the opinion of the Swedish Tax Agency, the community association acts independently towards the members. When a community association sells goods and services, they do so as a taxable person. This assessment is not affected by whether the community association’s provision is for profit or not. The community association must thus levy VAT on the basis of the compensation paid by the members, for example on amounts charged according to the length of the debit. This is provided that the association is not covered by the rules on tax exemption for companies with low turnover (The Swedish Tax Agency’s positionProvisions of community associations to members ). See also the heading link between outgoing and incoming tax on the basic page on the right to deduct .
Legal case: a community association’s supply of heat to its members
A community association built a thermal power plant that, among other things, would provide the association’s members with the supply of heat. The community association was considered to conduct an independent economic activity. The supply of heat for remuneration to the members constituted the supply of goods which were in principle subject to VAT ( C-449/19, WEG Tevestrasse, paragraph 38 ).
Source: skatteverket.se
