New Supreme Administrative Court Precedent Confirms Partial VAT Deduction of Acquisition Costs

Key Ruling: Finland’s Supreme Administrative Court (SAC 2025:61) confirmed that acquisition-related advisory costs may be partially deductible as overheads—if they support the acquiring company’s taxable business activities, such as management services to subsidiaries.
Group Structure Neutrality: The Court clarified that VAT deductibility applies even when services are provided to indirectly held subsidiaries, not just directly acquired ones—group structure alone does not restrict the deduction right.
Burden of Proof & Allocation: Companies must clearly document how costs relate to their own taxable operations versus investor-related activities. Mixed-use services (e.g. due diligence, strategic advice) require careful cost allocation to justify partial VAT recovery.