New VAT Rules for Parking – What Property Owners Need to Know from 2026

What’s changing?

Until now, parking spaces rented together with apartments or commercial premises have often been treated as part of the property rental — and therefore exempt from VAT.

Under the new interpretation, the rental of parking spaces will generally be regarded as a separate taxable service, subject to 25% VAT.

However, a parking space can still be VAT-exempt if all three of the following conditions are met:

1. The parking space is located directly adjacent to the residence or premises.
   
2. The tenant cannot opt out of the parking space when signing or renewing the lease.
   
3. The tenant does not sublet the parking space as part of an economic activity.
   

If any of these conditions are not met, the parking should normally be treated as a separate, VAT-liable service.

What this means for property owners

This change means that many property owners will need to review and potentially update their agreements, systems, and routines.

Key areas affected:

• Contracts and pricing: existing agreements without clauses for regulatory adjustments may need amendments.
  
• Invoicing: parking may need to be invoiced separately from rent for residential or commercial space.
  
• Communication: tenants should be informed about how the change affects their parking fees.
  
• Accounting: VAT-liable parking gives property owners the right to deduct input VAT on costs related to construction, operation, and maintenance of parking areas.
  

When does the new interpretation apply?

The Swedish Tax Agency’s new view will apply from April 1, 2026.
Property owners now have time to prepare by reviewing:

• contracts and pricing structures,
  
• billing and accounting systems,
  
• and communication routines with tenants.

Recommended preparations

To ensure a smooth transition, property owners may consider the following steps:

1. Map current parking agreements
   Identify which agreements include parking and whether they contain a clause allowing for changes due to new regulations.
   
2. Update agreements where needed
   If no such clause exists, supplementary agreements or renegotiations may be required.
   
3. Review billing and accounting systems
   Ensure systems can manage VAT separately for parking.
   
4. Inform tenants early
   Communicate clearly about the change, its timeline, and its practical implications.
   
5. Adjust pricing and financial routines
   Plan how the new VAT should be handled in relation to existing rents and fees.
   

System support in Parkit

The Parkit system can help property owners handle the new VAT requirements efficiently.
Functions include:

• setting VAT rates per parking object,
  
• separate invoicing for parking and related services,
  
• automated VAT reports and exports for accounting,
  
• and flagging exceptions where VAT exemption may apply.
  

The purpose is to simplify administration — not to interpret the law.

Background to the decision

The Swedish Tax Agency considers parking to be, in most cases, an independent commercial service and therefore subject to VAT.
The change aims to create a more consistent and transparent application of tax rules for property-related services.

Summary

<div class="knowledge-table"><div class="knowledge-table_header"><div class="knowledge-table_header-cell">Topic</div><div class="knowledge-table_header-cell">Previous interpretation</div><div class="knowledge-table_header-cell">New interpretation (2026)</div></div><div class="knowledge-table_row"><div class="knowledge-table_cell">VAT on parking</div><div class="knowledge-table_cell">Usually VAT-exempt (part of rental)</div><div class="knowledge-table_cell">Separate taxable service (25% VAT)</div></div><div class="knowledge-table_row"><div class="knowledge-table_cell">Deduction rights</div><div class="knowledge-table_cell">No</div><div class="knowledge-table_cell">Yes, on parking-related costs</div></div><div class="knowledge-table_row"><div class="knowledge-table_cell">Contract adjustments</div><div class="knowledge-table_cell">Rarely needed</div><div class="knowledge-table_cell">Often required</div></div><div class="knowledge-table_row"><div class="knowledge-table_cell">Effective date</div><div class="knowledge-table_cell">–</div><div class="knowledge-table_cell">April 1, 2026</div></div></div>

Disclaimer

This text is a general summary of the Swedish Tax Agency’s official position and is provided for informational purposes only. It does not constitute legal or tax advice. For case-specific guidance, contact the Swedish Tax Agency or a qualified tax advisor.