US ambassador: change Swedish VAT rules
Published: 12 Mar 12 13:22 CET | Print version
Online: http://www.thelocal.se/39622/20120312/
The US ambassador to Sweden, Mark Brzezinski, recently wrote a letter to the Swedish minister for finance Anders Borg, advising him that Sweden would do better following Austria’s example on value added tax (VAT) reimbursements for diplomats.
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The current system calls on foreign diplomats in Sweden to submit VAT refund requests quarterly, but also requires that diplomats submit original receipts for each individual item, according to guidelines from the Swedish Ministry of Foreign Affairs.
After carefully looking into the matter, Brzezinski concluded that the scheme currently used in Austria where foreign diplomats can elect to receive a quarterly lump-sum payment in lieu of collecting and submitting individual receipts.
"It would dramatically reduce the workload of the Swedish tax authorities in reviewing quarterly receipts submitted by diplomats, and it would make VAT reimbursement a much more transparent and efficient process," he wrote.
According to Brzezinski, this system has won praise from both the Austrian government and diplomats in Austria for streamlining the previously cumbersome reimbursement process.
The Austrian payment, €330 per quarter, with an annual ceiling of €1,320, is based on the average quarterly expenditure of diplomats and the cost of living in Vienna, which according to calculations made by the U.S. State Department in the case of Sweden would be 60 percent higher.
“Therefore, we propose a quarterly lump-sum payment to diplomats in Stockholm of 528 Euros per quarter (approximately 4,650 kronor). We would be happy to provide details on the U.S. State Department’s cost of living data.
The ambassador closed his letter urging the minister to look into the matter, saying he will urge other embassies in Stockholm to support his proposal.
Rebecca Martin
twitter.com/darlinbec
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It would also be interesting if the local could do a quick comparison with the arrangements in USA.
I'd suggest he goes to Austria but question whether they really deserve him.
That said, who cares? Why does the Local waste time reporting insignificant stories like this and why am I wasting my time commenting on it?
".....it would make VAT reimbursement a much more transparent and efficient process,"
Transparency in business means open and accountable. Surely a system that relies on making a payment in lieu of collecting and submitting individual receipts is LESS transparent.
If this is all he has to worry about he needs to get a life. If he had been sitting in Guantanamo for 10 years without a trial he would have something to worry about.
'I'm an ambassador, so I feel I have the right to tell you how you should dictate your economic rules for foreign ambassadors in your country!'
Good luck with that.
Also, don't you have better things to do than write letters about how annoyed you are with having to work within a countrys vat laws?
It would merely make things more efficient. Worry about the tax cheats living in tax havens. Skatteverket does a good enough job collecting their bit.
1. There are hundreds of foreign diplomats in Stockholm, the majority of whom are NOT ambassadors. The U.S. ambo is probably just about the only person who can actually get traction on this issue. Lower level diplomats are not at liberty to take action themselves on this.
1 a. Many of these people read the Local because they don't speak Swedish, so YES there are people among the readership here who care. (we're not all unemployed disgruntled sambo's!)
2. It is simply a fact that most other countries have a much better system of handing VAT reimbursements (which are only on certain items, not everything you buy). Some involve the Austrian system, some you get a special card that you swipe when you buy stuff and the reimbursement happens automatically. Diplomats, who have important work to do, end up wasting many hours of their time four times a year to complete something that does not need to take them any time at all. Sweden is way behind compared to its comrades in this department and it is time to modernize, even if it is just for the sake of day-to-day diplomacy.
3. If Sweden choses to modernize it will not change Sweden's tax intake for the year because these diplomats are already entitled to this refund. All the ambassador is asking for is a simpler system, not a lowered tax burden.
and fwiw I'm not a diplomat nor am I related to one.
Can we give them the real receipts and an excel file, so the tax people have to do a little more work / some work, for those 5 diplomats...
The swedish tax system need re-inventing.
"OFM issues tax exemption cards to eligible foreign missions, mission personnel and their eligible family members consistent with international law, domestic statute, and the underlying principle of reciprocity. Tax cards provide point-of-sale exemption from sales and use taxes throughout the United States. This system provides immediate relief from taxes without the administrative burdens, costs, and delays commonly associated with reimbursement systems."
US would do better following EU's example on visitor visa issuance. No Visa for American citizens, maximum 2 weeks for any other citizen! The US cumbersome system demands European citizens to ask for permission 3 days before their journey and other citizens to ask for..hmm.. let's see 2 weeks? 4 weeks? 1 month? 12 months?! Yes it can be even more than 12 months and please don't tell me it can take 12 months to investigate a case!!!
The US Consul answered and said, " U.S. Embassies around the world in general do not get involved in taxation issues." Sounds a bit hypocritical to me. I guess they only get involved when it affects their own pockets, not the citizens they are there to represent and protect.
@iraniboy
you might wanna sign in with a different user name cause yours indicates your nationality and whatever you say will be seen as the opinion of all Iranians. that ain't right.
Well that's a good idea and I'm sorry for that. But as a matter of fact, nobody likes to wait for a permission to travel one year. Not even animals! So the issue is regardless of nationality! It is common among all mammals!
So, how many original receipts do YOU get when you make purchases`?
I couldnt have said it better myself, what a f**ktard.
It has been estimated that the paperwork needed to comply will take 20-30 hours.
Those taxpayers being stalked pay for the ambassador's lavish housing, food and travel.
And he's whining about collecting a few receipts