In mid September this year the Government presented a proposal concerning VAT and the cultural sector such as theatre, concerts, opera, circus and literary works. The proposal also includes changes to the exemption for education. The proposed changes are a consequence of the Swedish membership of the EC. The effect will be that certain areas will no longer be exempt from VAT. The tax rate for most of this supplies is proposed to be 6 %. The proposed changes will enter into force, decision is expected in mid December 1996, on January 1, 1997. In short the following supplies will no longer be exempt.
- education services will normally be seen as taxable supplies except for traditional education such as nine-year compulsory school, upper secondary school and university
