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US ambassador: change Swedish VAT rules

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.

“There appears to be almost universal frustration with the current system, which we believe is an unnecessarily cumbersome and time-consuming process for both the Swedish government and for individual diplomats in Stockholm,” Brzezinski wrote.

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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DIPLOMACY

Berlin police investigate ‘Havana syndrome’ sicknesses at US embassy

Police in Berlin have opened an investigation into unexplained sicknesses that have been affecting staff at the US embassy in the German capital.

The US embassy in Berlin.
The US embassy in Berlin. Photo: dpa-Zentralbild | Jens Kalaene

The investigation, which Berlin’s city authorities confirmed to Der Spiegel last week, comes after at least two members of staff at the embassy reported symptoms that correspond to the so-called Havana syndrome, an unexplained sickness that has been affecting US diplomats and spies across the globe since 2016.

The US embassy has reportedly handed over evidence to Berlin’s state detective agency.

The first cases were reported in Havana, the Cuban capital, where dozens of diplomats reported suffering nausea and headaches. There have since been cases reported in Vienna, Moscow and Singapore.

US authorities suspect that the condition is caused by a sophisticated attack using concentrated microwaves.

The fact that many of the diplomats and CIA agents affected were working on Russian affairs has led them to believe that Moscow is somehow involved – a charge that the Kremlin denies.

As far as this so-called ‘syndrome’ is concerned, US President Joe Biden has vowed to find out “the cause and who is responsible.”

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