- The Supreme Administrative Court has ruled that a company that competes with 3-4 horses in trotting races against a starting fee is engaged in economic activity
- The company has been registered for VAT since 1995 and the owner has been a licensed trainer approved by Svensk Travsport
- The company has consistently had three or four horses that are trained continuously and compete in 50-60 races annually
- The starting fee per horse per race was 500 SEK and the prize money ranged from 200,000 SEK to 440,000 SEK per year
- The Supreme Administrative Court concluded that the company’s racing activities with horses, where it receives income from starting fees, constitute economic activity
- The Court clarified that a horse owner’s activity of competing in races for a starting fee can be considered economic activity
- The Court’s ruling contradicts the view expressed by the Swedish Tax Agency in their guidelines on taxable persons and the distinction between economic and private activities for VAT purposes
- The Tax Agency will review their guidelines in light of the Court’s ruling, especially regarding activities involving trotting and galloping races.
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.
