- Financial relationship must exist for taxable persons to form a VAT group
- Determining influence is key in assessing financial relationship
- Majority ownership or control indicates strong financial relationship
- Ownership without control may still indicate a weak financial relationship
- Ownership of at least 5% is considered to have some influence
- Ownership below 5% generally does not indicate any influence
- Special circumstances may allow for a financial relationship with ownership below 5%
- VAT group can be formed even if controlling company cannot join
- Purpose is to avoid distortion of VAT on companies
- Economic and organizational ties are necessary for forming a VAT group
Source: www4.skatteverket.se
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
