Swedish hospitality VAT rule changes

Thu 24th Jul 2014

The Swedish tax office has issued a number of changes to the right to deduct hospitality VAT based on European Union rules.  These include:

  • The upper limit of VAT deductions per corporate hospitality client has been raised from SEK 90 to SEK 300
  • For staff, the same caps have been raised from SEK 200 to SEK 300

Instead of the above, companies may still apply the old, pre-EU entry rule of SEK 180 per person.

In both cases, the right to deduct the VAT incurred depends on the expenditure also being deductible for corporate income tax.