- Swedish Supreme Administrative Court issued a decision on June 5, 2025, regarding VAT on business transfers in VAT-exempt sectors
- The decision changes the previous rule that transfers of businesses in VAT-exempt sectors are out of scope of VAT
- The case involved a company transferring its operational activities to a wholly owned subsidiary
- The transfer included all assets related to the brokerage business
- The issue was whether the transfer qualifies as a supply of goods or services under Swedish VAT Law
- Both the company and Swedish Tax Authority agreed the transfer should not be taxable
- The Court ruled the transfer cannot be exempt under Swedish legislation as the subsidiary conducts tax-exempt activities
- Sweden will now adopt a stricter approach to VAT treatment of business transfers in exempt sectors
- The ruling marks a shift from previous practices and introduces a more complex rule for VAT-exempt business transfers
Source: vatabout.com
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.
