WHAT: In Sweden, tax legislation regarding the primary workplace has been an obstacle to how employers can allow their employees to choose where they want to work, especially in the public sector, as it has consequences for, allowances if the employee is more than 49% outside working hours . In December 2021, however, the Swedish Tax Agency announced that they had changed the application of the regulations and proposed that it was sufficient for the employer to offer the employee an office space for this to be counted as the primary place of employment, regardless of how much the employee actually uses that space. In the pursuit of better utilization of properties through the division of premises and office space, the current legal framework for VAT management is an obstacle. It is not designed for these models, making it difficult for property owners and tenants to test different options.

SO WHAT: This is an important structural key for, above all, public employers, but also other companies, to be able to meet the requirements set by employees and to continue to be relevant in order to attract and retain talent in their organizations. However, there are other major differences that need to be reviewed with regard to, for example, other benefits that we have in the office on a daily basis, but which are taxed on benefits when they are transferred to a home office. Updating legal space around VAT management for division of premises will be a prerequisite for moving forward in the issue of premises division and for more circular models.