- The document discusses transactions between partners and their partnerships, specifically limited partnerships or general partnerships, focusing on value-added tax (VAT) implications
- It clarifies that for a business to be considered a partnership, partners must agree to conduct a joint venture
- The economic activities of a partnership may involve selling goods or services to external customers or providing services like administrative support or staffing to the partners’ other businesses
- Whether an activity is jointly conducted by the partnership or independently by individual partners depends on the actual management and operation of the activity
- VAT applies when a partner independently provides services to the partnership as a taxable person
- Services that go beyond necessary management, such as those not related to general organization and operation, are considered independently provided by the partner
- A partner is not acting independently when performing necessary management tasks within the partnership without guaranteed compensation, instead, these are considered actions on behalf of the partnership
- If a partner receives guaranteed compensation for services, it is considered a taxable supply of services
- This statement updates and clarifies a previous statement from 2021, with no change in substance but clarifies the conditions under which guaranteed compensation to a partner is considered
- The document addresses when an economic activity is considered jointly conducted and when services provided by a partner are subject to VAT, but does not discuss the taxability or applicable VAT rate of such transactions
Source: www4.skatteverket.se
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
