Even more specifically you can buy the clothes with company money and then deduct the VAT.
If you have 1000 kr in your company and a shirt on a shelf costs 500 kr. You buy it for company money and then deduct 20% of the price in VAT. Making the expense to the company 400kr. The company now has 600 kr left and you have a shirt.
If you instead wanted to buy it privately you would have to take out 500 kr from the company. You would then pay about 450 kr in tax as well because now it's like a wage and you have to pay fees and taxes on the sum. You then buy the shirt for 500
You now have a shirt and your company spent 950 kr on it instead of 400.
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@Carewolf
Even more specifically you can buy the clothes with company money and then deduct the VAT.
If you have 1000 kr in your company and a shirt on a shelf costs 500 kr. You buy it for company money and then deduct 20% of the price in VAT. Making the expense to the company 400kr. The company now has 600 kr left and you have a shirt.
If you instead wanted to buy it privately you would have to take out 500 kr from the company. You would then pay about 450 kr in tax as well because now it's like a wage and you have to pay fees and taxes on the sum. You then buy the shirt for 500
You now have a shirt and your company spent 950 kr on it instead of 400.