- The Supreme Administrative Court ruled that a holding company does not engage in economic activity if it purchases services used by its subsidiaries or as a managing parent company without invoicing the subsidiaries or charging for management services
- The case involved an appeal from the Administrative Court
- The holding company had purchased services for three years without charging for them
- The Court also determined that principles of protection of legitimate expectations and legal certainty do not prevent the company from being denied deduction for input tax
- The company’s VAT registration was based on conditions that were not met
- The Tax Agency believes that registration cannot give someone the right to deduction when purchases are related to non-economic activity.
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.
