Supreme Administrative Court ruling on holding company’s economic activity and VAT registration implications (2024)

• The Supreme Administrative Court ruled that a holding company does not engage in economic activity if it purchases services used by its subsidiaries or as a managing parent company without invoicing the subsidiaries or charging for management services
• The case involved an appeal from the Administrative Court
• The holding company had purchased services for three years without charging for them
• The Court also determined that principles of protection of legitimate expectations and legal certainty do not prevent the company from being denied deduction for input tax
• The company’s VAT registration was based on conditions that were not met
• The Tax Agency believes that registration cannot give someone the right to deduction when purchases are related to non-economic activity.

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.

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