- Tournaments involve multiple participants or teams competing against each other in a specific area.
- Prizes can be awarded to participants based on their placement in the competition.
- The Swedish Tax Agency considers prizes that are solely based on placement to not be compensation for a provided service.
- However, there are competitions where prizes are similar to a bidding process, and the evaluation should be based on the competition rules.
- If the winner receives both a prize and compensation for their contribution, the prize is considered part of the total compensation.
- This statement replaces previous statements regarding prizes in sports competitions and other competitions.
- The question is whether participants receiving prizes based on their placement can be considered as providing a service for compensation.
- EU court and Swedish court rulings indicate that prizes in horse racing are not considered compensation for a service.
- ML states that services provided for compensation are subject to VAT.
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.
