Skatteverket plans to introduce 25 percent VAT on parking spaces for tenants and apartment owners from October 1, 2025, following a reinterpretation of EU rules. Rolf Lagerquist warns of rent increases, while Anders Cohen argues costs need not rise. Finance Minister Elisabeth Svantesson wants an investigation to halt the hike.
Skatteverket has announced that 25 percent VAT will be imposed on parking spaces for those with rental agreements or ownership in apartments, starting October 1, 2025. This decision stems from a reinterpretation of EU rules. Rolf Lagerquist, chairman of a housing association in Stockholm, voices concerns in an op-ed published on November 17, 2025. He warns that the increase could prompt many to cancel their parking leases, resulting in empty spots and lost revenue for property owners and housing associations. These losses risk being passed on to tenants and apartment owners through higher rents and fees. Lagerquist urges the government to intervene and reject the tax, noting that Finance Minister Elisabeth Svantesson (M) recently proposed an investigation to prevent the rise.
In a response on the same day, Anders Cohen, chairman of a housing association in Falun, counters Lagerquist's view. He agrees that the VAT adds unnecessary administration for associations but stresses that tenants already pay VAT indirectly via the association's costs for services like cleaning, snow removal, and maintenance. Under the new reporting, the association can offset input and output VAT, meaning the total cost to tenants remains unchanged – the VAT simply appears separately on the invoice. Cohen suggests that any additional administrative expenses might cause a minor rent increase, but not significantly due to the VAT reporting itself.
Skatteverket has also clarified that VAT on garage constructions can be deducted over six years. The debate highlights tensions between EU regulations and practical impacts on Sweden's housing sector.