Overruling earlier precedent, the Swedish Supreme Administrative Court decided, in a ruling from 4 February 2021, that the supply of connectivity, capacity and space in a data center should not be exempt from VAT liability as letting of immovable property. The ruling aligns Swedish law with the reasoning of the European Court of Justice (CJEU) in the recent A Oy case and is positive news for the Swedish co-location and data center industry.
Linn Nordqvist is a member of Baker McKenzie’s Tax Practice Group in Stockholm. Prior to joining the Firm in 2018, she worked as Assistant Tax Manager at a multinational accounting firm in Stockholm. Linn has also served as a Court Clerk at the Administrative Court of Stockholm and as an EU trainee at an international mission.