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Sweden scraps VAT group benefits

  • VAT
  • 05 October 2015 | Richard Asquith

Sweden scraps VAT group benefits

The allowance for group VAT locking in Sweden is to be abolished at the start of 2016.

The allowance permits group companies to transfer the right to deduct input VAT incurred on certain expenses. The European Commission had attempted to force Sweden to withdraw its entire VAT Grouping arrangements on the basis that it favoured the financial services industry. However, it failed, and so the Swedish authorities have decided to only remove this element.

The measure to withdraw VAT locking is contained within the 2016 Swedish budget, now with parliament.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.