At a time when many have had a tough time and many prices have risen, it is not reasonable to also start paying VAT on a parking space of a few hundred kronor, or a thousand kronor in certain parts of Stockholm, Malmö and Gothenburg, says Elisabeth Svantesson.
Last autumn the Swedish Tax Agency made new interpretations of EU law. Anyone who rents a parking space adjacent to their rental or condominium would have to pay 25 percent VAT, something that is estimated to affect around 1 million people. Municipal residential parking is not included.
Fully compensate
The Minister of Finance says she was “quite surprised” by the Swedish Tax Agency’s reinterpretation.
That is why it was important to change this, she says.
The implementation of the new rules has been postponed until October 1, 2026.
The government is now appointing a rapid investigation to review the possibility of changing the law, either removing the VAT or, if that is not deemed possible, neutralizing the financial consequences for car owners. This is a promise from the Tidö parties, says Svantesson.
Yes, that is precisely why I am appointing this investigation, because it has unreasonable consequences for a great many people.
On the drivers' side
The investigator will have to look at what any financial compensation might look like.
But you should know that our parties have been on the side of motorists over the years, she says.
The investigation is due to be completed on 22 December 2026, by which time the Swedish Tax Agency's new rules will have already been in effect for a few months. However, the Minister of Finance points out that the agency has already postponed the entry into force once, from April to October, and that an investigation changes the conditions for the Swedish Tax Agency.
How they choose to act on that is up to them.
