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Swedish VAT Pro Rata Rule Found to be in Violation of EU Law

The Swedish VAT Act has a provision for the proportion of residual input VAT in a business with taxable and tax-exempt transactions. The provision states that residual input VAT should be proportioned based on ‘reasonable grounds’ (skälig grund).

  • A notable case in the Supreme Administrative Court
  • The SAC’s conclusion
  • Commentary

Source: ITR

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