Background & Purpose

When foreign military forces from NATO operate together in Sweden, clear rules are needed regarding taxation and costs during joint defense operations.

Proposals & Debate

The government proposed implementing parts of the EU VAT directive to exempt foreign NATO forces from value-added tax during joint defense efforts in Sweden. This ensures that military forces from allied nations can recover VAT paid on goods and services acquired within the country.

The Decision

The Swedish parliament approved the government's proposal, granting visiting NATO forces the right to a refund on value-added tax for purchases linked to joint defense operations.

Does this affect you?

  • NATO military personnel: Receive the right to get value-added tax refunded on goods and services purchased during joint operations in Sweden.
  • Swedish suppliers and vendors: Must navigate the administrative processes and documentation required when selling goods and services to tax-exempt visiting military forces.

In Practice

  • Foreign NATO armed forces participating in joint defense operations in Sweden can apply for VAT refunds.
  • The rules apply to purchases of both goods and services acquired within Sweden.
  • Sweden implements further parts of the European Union's common VAT directive into national law.
  • The new regulations take full effect starting in August 2024.