A case before the Supreme Administrative Court (SAC) in Sweden concerned whether a holding company that provides management services to its subsidiaries can recover value added tax (VAT) on costs it incurred in relation to the disposal of shares in its subsidiaries as input tax.
SAC decision
The SAC concluded that the settled Court of Justice of the European Union (CJEU) case-law does not support a distinction in the right to recover VAT depending on the basis that the economic activity carried out by a taxable person is in respect of third parties as opposed to related parties.
Source: KPMG
