- A parent company sought to recover input VAT on deal costs related to the sale of shares of one of its subsidiaries.
- The Swedish tax authorities denied the holding company’s right to recover VAT on the basis that the costs were linked to an exempt activity.
- The Swedish Court of Appeal confirmed the position of the tax authorities.
- The Swedish Administrative Supreme Court held that the sale of shares was linked to the overall operations of the group and should be considered general expenses of the parent company.
- The Supreme Court stated that any limitation in VAT recovery should be assessed by the Court of Appeal.
- The recovery of input VAT on deal costs is complex, but the right to deduct may arise under specific conditions.
- Advice is crucial in this area.
Source: dlapiper.com
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.
