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Sweden: New VAT deduction rules proposed for mixed activities

Effective January 1, 2027

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January 29, 2026

The Ministry of Finance in early December 2025 published a memorandum proposing amendments to the Value Added Tax (VAT) Act to align Sweden's VAT rules with the EU VAT Directive.

The proposal would make the turnover-based method the standard for allocating input VAT in mixed activities, effective January 1, 2027, with alternative methods permitted only if they yield more accurate results.


For more information, contact a KPMG tax professional in Sweden:

Susann Lundstrom | Susann.Lundstrom@kpmg.se

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