The Swedish Tax Agency has clarified that payments of compensatory nature, such as damages, guarantees, fines, etc., can be considered as taxable transactions when there is a direct connection to the delivery of goods or services. If a seller assigns a buyer to fulfill a guarantee commitment, it becomes a definable service, and the payment can be considered a compensation for that service. If there is an agreement to reduce the price due to unsatisfactory delivery, it can be considered a price adjustment and reduce the taxable amount. This replaces a previous stance in 2009 and includes the possibility of payments in connection to guarantee commitments being taxable compensation for services provided.
Source: skatteverket.se
Latest Posts in "Sweden"
- ECJ C-436/24 (Lyko Operations) – AG Opinion – VAT Treatment of Loyalty Program Points
- Sweden Proposes Temporary VAT Reduction on Food and Bottled Water Starting April 2026
- Sweden Cuts Food VAT by Half: 2026-2027 Budget Eases Household and Business Costs
- Additional Documents May Be Required to Prove Deduction Rights Beyond Invoice Compliance
- Clarification: Incorrect VAT Charge Not Present If Invoice Only States Tax Included
