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Case Commentary: Deductibility of Input VAT in an Investment Activity

  • Skatteverket has determined that private equity firms engage in mixed activities when they both engage in exempt sales of shares and provide taxable services to subsidiary companies.
  • The Administrative Court has ruled in a recent case that the investment activities of a VAT group operating through a private equity fund are considered non-economic activities.
  • The provision of services to a subsidiary does not automatically classify all activities as economic activities.
  • The VAT group should allocate input tax on common costs between economic and non-economic activities.
  • The outcome of this allocation is the same as in Skatteverket’s previous position on the deductibility of input VAT in investment activities.
  • Skatteverket believes that the assessment in their previous position regarding private equity firms should no longer be applied.
  • Skatteverket will provide further clarification on their stance in a new position statement.


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.


VAT news
VAT news