VAT has been introduced on daily newspapers at 6% as from 1996. The other VAT-rates are the general rate at 25% and the reduced rate at 12% for mainly foodstuff, passenger transport and hotel services.
New rules are applicable in respect of paying and reporting VAT as from 1996. Single-month reporting/payment apply for all VAT-payers (but for the very smallest), normally at the 5th during the second month following the reporting period. For VAT-payers with an annual tax basis exceeding MSEK 10, the reporting/payment date is the 20th during the month immediately following the reporting period.
New VAT-rules, has been enforced in respect of, amongst others, certain transactions in stock stored out-of-customs and in respect the place of supply of EC-internal transport services, services on goods and assets transported to another EC country, and in respect of classification of EC-contract work.
The earlier Swedish domestic anti-avoidance legislation was as reported on in last issue, reintroduced already last year, and is applicable to transactions undertaken for the purpose of a tax benefit, in contrary with fundamental tax principles.
Since several years, Sweden has extensive CFC-provisions aimed at taxing income of entities in tax haven-locations in the hands of its Swedish resident individual or corporate partners/shareholders. It is the view of the National Tax Board that also indirect holdings are affected in certain cases.
A new law on application of double-tax treaties has been introduced, and sets the interaction between domestic law and a tax treaty, generally giving domestic law full priority up to the specific right-to-tax rules in the treaties.
This is a summary highlighting recent developments within the area of Swedish tax and related legal matters. The changes apply - if nothing else is stated - as from January 1, 1996. Detailed advice should be sought on your own specific situation and the applicability of rules reported on. Price Waterhouse is available to follow-up any queries you may have regarding the new rules, or any other matter.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information please contact Staffan Andersson Price Waterhouse Skattejurister AB - Stockholm +46 8 723 98 00, or enter text search 'Price Waterhouse' and 'Business Monitor'.
