Guidance: Access to sporting events

Access to sporting events

A service that refers to access to a sporting event is covered by the exemption from tax liability when the service is provided by the state, a municipality or a non-profit association covered by ch. 4. § 8 ML ( Chapter 3, § 11 a § ML , compare Article 132.1 m of the VAT Directive).

If the service is not provided by the state, a municipality or a non-profit association covered by ch. 4 § 8 ML, the service is taxable at the tax rate of 6 percent ( ch. 7 § 1 third paragraph 11 ML ).

During a transitional period, Member States may continue to exempt access to sporting events from tax liability (Article 371.1 Part B of Annex X to the VAT Directive). In Article 380 of the VAT Directive , Sweden has been given the right to apply this exception as long as one of the former member states does so.

According to Article 98 of the VAT Directive, Member States may apply reduced tax rates. The sales of goods and services to which reduced tax rates may be applied is shown in Annex III of the VAT Directive. Through Council Directive (EU) 2022/542 of 5 April 2022, the VAT Directive has been amended with regard to the rules on tax rates. Read more on the page Normal tax rate 25 percent and the structure of the tax rates. From 6 April 2022, a new wording of point 13 of Annex III of the VAT Directive states that Member States have the right to apply a reduced tax rate to access to sports events, use of sports facilities and the provision of lessons in sports or physical training. From point 13 it is also clear that the reduced tax rate applies to live streaming of sports events and lessons in sports or physical training. This part of paragraph 13 relating to live streaming of sports events may be applied by Member States only from 1 January 2025 (see Article 3.1 of Council Directive [EU] 2022/542 of 5 April 2022 amending Directives 2006/112/EC and [ EU] 2020/285 regarding VAT rates ).

The concept of sporting event

The term sporting event refers to a special arrangement with the practice of sport or physical training that takes place at a certain time and that lasts for a limited time in a certain place.

The concept of access

The Swedish Tax Agency considers that the concept of access means that a person is given the right to attend an event as an audience or as a participant in exchange for e.g. a ticket or a competition fee. The way in which the compensation is given to the seller has no significance. An example of a turnover of a service relating to access to a sporting event is the sale of tickets that give the audience access to a football match. Another example is participation fees for competitors in an organized skiing competition or in a football tournament (Tax Agency’s position Opportunity to exercise sporting activities and access to sporting events, value added tax ).

Rental of lodges

The Tax Agency considers that an agreement which results in the customer being able to take part in sporting events and gain access to a lodge in a sports facility for conference opportunities as well as access to advertising space may constitute the provision of one or more separate services. Decisive is the meaning of the agreement, primarily which services are included and how these may be used by the customer. See further on the page Rental of property and examples under the heading Rental of lodges – access to sporting events .

Access to the viewing of sporting events

The Swedish Tax Agency considers that access to a broadcast of a sporting event can also be covered by the exemption from tax liability in ch. 3. § 11 a ML or of the tax rate of 6 percent in ch. 7. § 1 third paragraph 11 ML . This is the case if the screening takes place in front of an audience directly when the event takes place. It is irrelevant if the broadcast is delayed for any reason, e.g. if, for rights reasons, it may not be broadcast at the same time as the event is being carried out (Tax Agency’s position Opportunity to exercise sporting activities and access to sporting events, value added tax ).

If the screening takes place in front of an audience after the event has taken place, the recorded footage of the broadcast of the event must not have been processed, edited or cropped. If the film has been processed, edited or cut, the supply is not covered by the exemption from tax liability or by the 6 percent tax rate, but is covered by the 25 percent tax rate.

Court cases: access to the screening of cultural performances after the fact

The Supreme Administrative Court has stated that access to a screening of an unedited recording of a cultural performance that was performed in front of an audience is subsequently subject to the 6 percent tax rate. From the wording of the provision, nothing could be deduced about in what form or in what place the audience would take part in a performance in order for it to be covered by the reduced tax rate. Of the preparatory statements that were made in connection with cinema performances being removed from the scope of application (see prop. 2015/16:1, p. 321 f.), it appeared that the intention was that certain performances would be covered by the reduced tax rate regardless of whether the audience took part in them in the place where they take place or in another place by projection on a cinema screen. The content of the performance would instead be decisive ( HFD 2018 ref. 77).