Mixed business  (Sales exempt from VAT and liable to VAT)

Some companies conduct operations that are partially exempt from VAT. For example, a healthcare company where there are licensed physical therapists (VAT exempt) and massage therapists (taxable). Then there are special rules for deductible VAT, ie the VAT that you will get back from the tax office.

For things you buy to the taxable part, such as oil to masseurs, you may deduct all input VAT and the things you buy for the tax-free part, you may not deduct any input VAT. The things that do not belong to any particular part, such as accounting services, you must make an apportionment of VAT according to how much each part sales.

If the tax-free part accounts for 30 percent of revenues and the taxable portion accounts for 70 percent, you may deduct 70 percent of the input VAT on the work/things that belongs to both, in our case bookkeeping services.

Each part of the turnover are a common basis for allocation. Another may be facility space or visitors to each area.

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