Maria Ström
Associate
Stockholm
Newsletter
Swedish statement on VAT on parking spaces
by Maria Ström and Ebba Perman Borg
Published:
In October 2025, the Swedish Tax Agency (the "STA") published a public statement introducing a new interpretation of the VAT rules applicable to parking spaces provided by landlords, which have previously been exempt from VAT. In its statement, the STA sets out a number of requirements that must be met in order for parking spaces and garages to continue to be VATexempt.
The requirements include, among others, that
- the parking space must be located within the same property complex or in close proximity to the property, and
- the tenant must not, either at the time of entering into the lease agreement or thereafter, have the option to waive the right to use the parking space and thereby pay a lower rent.
The STA decided, on its own initiative, to apply the new interpretation as from 1 April 2026. The application was subsequently postponed to 1 October 2026.
The STA has further postponed the implementation to 1 April 2027. The reason is that the Government appointed an inquiry into VAT on parking spaces on 19 March 2026. The appointed investigator is to examine the legal possibility to amend the Swedish VAT Act so that parking spaces leased by landlords to their own tenants are exempt from VAT. If an amendment to the legislation is not possible, the investigator is to examine other ways of neutralising the economic consequences of the STA's revised application of the rules.
The inquiry is to be reported no later than 22 December 2026.
