Court Rules Horse Racing for Prize Money as Economic Activity, Allows VAT Deductions

• The court examined if horse racing for prize money is an economic activity.
• The court considered continuous income from entry fees and long-term operation.
• The court ruled the activity as economic, allowing VAT deductions.
• Similar rulings were made by other courts on the same day.
• The rulings indicate horse racing for prize money is an economic activity even if smaller in scale.
• Previous guidelines on economic vs. private activities are now outdated.
• The case involved a company denied VAT deductions by the tax authority.
• The lower court supported the company based on legitimate expectations and legal certainty.
• The tax authority appealed, but the court upheld the lower court’s decision.
• The Supreme Administrative Court later overturned the decision regarding VAT deductions.
• The company owned a 75 percent share in a racehorse during the case period.

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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