Sweden’s Supreme Administrative Court Facilitates Input VAT Deduction Rights for Active Holding Companies

• Sweden’s Supreme Administrative Court issued a decision regarding input VAT deduction rights for active holding companies disposing of shares.
• The ruling allows holding companies engaged in economic activities to claim input VAT on costs related to the sale of shares.
• The decision states that the costs must be linked to the company’s overall economic activity, rather than directly related to the sale of shares.
• The court noted the absence of supporting jurisprudence from the Court of Justice of the European Union for distinguishing deduction rights based on the type of economic activity.
• The ruling opens up possibilities for active holding companies to request a review of previous decisions and seek retroactive deductions.
• Companies that have not claimed deductions for such expenses may now consider seeking deductions related to these costs.

Source: bdo.global

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.

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