Supreme Adminstrative Court judgment on value added tax: Engagement as a radio presenter – principally work or principally an intellectual creation?

An engagement as a presenter for a radio programme was predominantly comprised of an assignment of copyright and was therefore covered by the reduced value added tax rate of 6 per cent, and not the normal tax rate of 25 per cent which is charged for work efforts. This was stated by the Supreme Administrative Court in a ruling on 5 June 2020.

In its judgment, the Court stated that the presenter’s instalments give the impression of an intellectual creation and may thus be deemed to possess originality. The same is true, at least in part, regarding her input in discussions and conversations during the programme.

In order for the presenter engagement to be covered by the reduced tax rate of 6 per cent, it must be regarded as principally pertaining to an assignment of copyright. For the contractor, Radio Sweden, it is the right to make the presenter’s contribution to the radio programmes available to the public that is essential and the economic value for Radio Sweden rests in the acquisition of the copyright. The work that the presenter carries out in addition to this, which is not of a creative character, may be deemed to be ancillary to the assignment of copyright. Since the predominant element of the supply is comprised of an assignment of copyright, the reduced tax rate of 6 per cent should be charged.

Read the judgment here: