New position on value added tax for the rental of parking spaces

What applied previously?

According to Skatteverket’s previous position from 2004, a landlord’s rental of parking spaces was exempt from VAT if the spaces were located within the same property complex or in close proximity to the premises or dwelling. The parking spaces were then considered subordinate to the rental of the premises or dwelling and were taxed in the same way as that rental.

What applies now?

Skatteverket now considers that a landlord’s rental of parking spaces to tenants should only be regarded as subordinate to the rental of premises or dwellings if all three of the following conditions are met:

1. The parking space is located within the same property complex or in close proximity to the premises or dwelling. An example is if the parking space is located on the property next to the one where the premises or dwelling is situated. Another example is a central garage for a row of townhouses.

2. When signing the lease agreement or thereafter, the tenant cannot opt out of the right to use the parking space and thereby pay a lower rent for the premises or dwelling.

3. The tenant does not sublet the parking space for consideration as part of an economic activity.

If these conditions are met, the rental is exempt from VAT unless the landlord has opted for voluntary VAT registration for the rental of the premises. If the conditions are not met, there will be two separate supplies, meaning that the rental of the parking space becomes subject to VAT.

Skatteverket’s position applies to rentals to both commercial and residential tenants. However, the change will also affect housing cooperatives (bostadsrättsföreningar) that rent out parking spaces to their members.

What does the change mean?

According to Skatteverket, the change means that rentals of parking spaces to commercial and residential tenants will to a greater extent be subject to VAT. The key factor is that the tenant must not have the option to decline the parking space. If the tenant can choose to opt out of the parking space and pay a lower rent, the rental of the parking space becomes subject to VAT, even if it is located close to the premises or dwelling.

Since parking spaces are usually rented under separate lease agreements, we assess that the change may affect a large number of property owners, including both landlords and housing cooperatives.

Those who rent a parking space from another property owner or a parking company already pay VAT and are therefore not affected by this change.

How to prepare

Skatteverket will apply the new position to supplies taking place from 1 October 2026. This gives landlords sufficient time to make necessary adjustments:

• Review existing parking spaces and their lease agreements. Based on this, it will be possible to assess whether they are affected by the change.

• If the rental is deemed subject to VAT, review the agreement’s VAT provisions. The property owners’ templates contain a specific clause for VAT.

• Adjust invoicing routines to ensure VAT is charged.