The Swedish Tax Court issued Advance Notice No. 54‑25/I on 17 Dec 2025, clarifying that the input VAT deduction limitation for permanent residences does not extend to parking garages that are clearly separated from the residence. In the case, a taxpayer owning a residential building, a commercial building and a parking garage sought guidance, and the court ruled that the garage’s design and use meant it was not part of a permanent residence, so its costs are not subject to the limitation.
The court ruled that the input VAT deduction limitation for permanent residences does not apply to parking garages that are clearly separated from the residence, as the garage’s design and actual use indicated it was not part of a permanent residence.
The notice was issued on 17 December 2025.
The taxpayer owned a residential building, a commercial building and a parking garage.
Costs related to the parking garage are not subject to the input VAT deduction limitation for permanent residences, allowing the taxpayer to claim the full input VAT on those costs.
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