Sweden: Government Clarifies the VAT Exemption for Restaurant Services
The abolition of the VAT distinction between food and restaurant services was announced by the Swedish Tax Agency. Hence, restaurant services will no longer be considered a separate VAT category but subject to the same VAT rate as food services.
Background
Restaurant and catering services include providing ready-to-eat or uncooked meals for human consumption, or both when the delivery is accompanied by several services that direct consumption is conceivable. A holistic assessment of the situation surrounding the purchase in concern was conducted.
Clarification includes:
- The restaurant’s services are subject to 25% tax.
- If a client chooses not to finish their meal at the restaurant but must be delivered instead, it is subject to 12% VAT.
Source: skatteverket.se
