Swedish Supreme Court Clarifies VAT Deductibility for Consultancy Fees in Business Operations Pre-Divestment

• Swedish Supreme Administrative Court ruled in favor of OneMed Sverige AB on 26 May 2025
• Case involved deductibility of consultancy fees related to operational improvements before a divestment
• Consultancy services aimed at improving operations and profitability were re-invoiced to OneMed Sverige AB
• Swedish Tax Agency argued these costs were linked to the sale process and not deductible
• Lower courts agreed with the Tax Agency’s position
• Supreme Court ruled consultancy services delivered value to OneMed’s operations, independent of sale outcome
• Court clarified that such services are deductible for income tax and input VAT purposes
• Expenses are deductible if incurred to acquire or maintain income as part of business activity

Source: vatit.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.

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