The Tax Agency clarifies in the position that the losing party in a court case cannot be allowed a deduction for the value added tax charged by the other party’s representative, even though he is obliged to pay for the other party’s legal costs. It is further clarified that the right to deduct a litigant’s own attorney’s costs depends on the extent to which the litigant conducts a taxable activity.In practice, for example C-283/12, Serebryannay, the Court of Justice of the EU has made it clear that there must be a legal relationship involving a mutual exchange of services between the parties for it to be considered a turnover of a service. What appears from the position can be seen as such information which is only a clarification and which for that reason can appear directly from Legal guidance. There is therefore no longer any reason to retain the position.
Source: www4.skatteverket.se
