- Financial relationship must exist for taxable persons to form a VAT group
- Determining influence is key in assessing financial relationship
- Majority ownership or control indicates strong financial relationship
- Ownership without control may still indicate a weak financial relationship
- Ownership of at least 5% is considered to have some influence
- Ownership below 5% generally does not indicate any influence
- Special circumstances may allow for a financial relationship with ownership below 5%
- VAT group can be formed even if controlling company cannot join
- Purpose is to avoid distortion of VAT on companies
- Economic and organizational ties are necessary for forming a VAT group
Source: www4.skatteverket.se
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.
Latest Posts in "Sweden"
- Sweden to reduce the VAT rate on foodstuffs from 12% to 6% as of 1 April 2026
- Sweden Reduces Food VAT to 6% Amid Inflation and Growth Concerns, Effective April 2026
- Sweden’s Food VAT Cut: Opportunities and Challenges for Retailers and Consumers in 2026
- Sweden to Halve Food VAT in Election-Year Budget to Boost Economy and Support Households
- Impact of Swedish VAT Act Changes on TOGC Exemption for VAT-Exempt and Mixed Businesses
