Property Owners Seek Judicial Review of New Parking VAT Rule
Stockholm, Sweden - Property owners in Sweden are calling for a judicial review of a Swedish Tax Agency assessment requiring a 25 percent Value Added Tax (VAT) to be applied to parking rents, effective April 1, 2026. The assessment, based on the Tax Agency’s own interpretation, is facing criticism for perhaps increasing costs for both tenants and landlords, and creating administrative burdens.
Ulrika Hansson, a tax lawyer at the property owners’ association fastighetsägarna Sverige (Property Owners Sweden), believes the new rule represents a negative advancement. “With this practice change on the part of the Swedish Tax Agency, landlords who rent housing will have to register for VAT to be able to report VAT on the parking rent. it creates a great administrative burden,” she stated.
A key concern raised by Hansson is the lack of legal precedent for the Tax Agency’s interpretation. “It is uncertain whether the Swedish Tax Agency’s interpretation actually holds up under judicial review, because it is all based on the Swedish Tax Agency’s own opinion, which is not legally binding,” she explained. “Until we get a binding decision from the Supreme Administrative Court, we float in uncertainty.”
Hansson doesn’t view the Tax Agency’s interpretation as self-evident and suggests that challenging it in court could be beneficial for some property owners.”I absolutely think that those who have resources and the will should test the issue in court. I think there are tangible ambiguities in the Swedish Tax Agency’s interpretation, so even though it is an expensive and time-consuming process, it may be worth it for those who can afford it,” she said.
For property owners seeking a less extensive appeal process,Hansson recommends applying for an advance notice from the Tax Tribunal.
Fastighetsägarna Sverige estimates that,on average,parking spaces could become 22 to 23 percent more expensive nationwide as an inevitable result of the VAT. This increased cost is expected to primarily impact tenants, but landlords could also experience financial consequences.
“If the parking lot becomes 25 percent more expensive for housing rental guests, they can simply choose to terminate it, which leads to more vacancies, which of course affects the property owner’s revenue,” Hansson noted. While landlords can deduct VAT on costs related to parking, she points out that existing parking facilities often don’t generate high enough running costs to substantially offset the new tax.
The impact of the VAT will also vary geographically, with higher parking costs in metropolitan areas potentially leading to a greater financial strain than in smaller towns. Fastighetsägarna Sverige estimates the new VAT could generate hundreds of millions of SEK annually for the Treasury.
