The answer is actually both yes and no. From 1 January 2003 an invoicing company that is not owned by the person who is on stage will be treated as a production company, and they add 25% VAT on the fees paid to performing artists, i.e. gager. Frilans Finans is equated with a production company according to the Tax Agency’s definition and therefore Frilans Finans must impose 25% VAT on fees paid to performing artists.
In cases where the artist who stands on the stage owns the invoicing company, this will be treated as an Artist company and VAT is not to be added to the fees paid to the performing artist. Note that as a consequence, the Artist company is not entitled to deduct VAT on purchases.
It is worth noting is that VAT does not constitute an cost for most companies in Sweden because they are subject to VAT, and thus are entitled to offset input VAT against output VAT. Certain private individuals, non-profit organisations, religious communities, and the above-mentioned Artist companies, are exempted from the payment of VAT, so for these VAT constitutes an expense and nor do they have the right to deduct VAT.
Övriga frågor