Sweden: New VAT deduction rules proposed for mixed activities
Effective January 1, 2027
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