Finland: VAT Recovery on PE Acquisition Costs Limited to Taxable Management Activities, Not Investor Structuring

• Input VAT on acquisition costs in Finnish PE structures is recoverable only for costs linked to the acquiring company’s taxable management activities.
• VAT is not recoverable for costs related to investor-level decisions or upstream structuring.
• Pro rata VAT deduction is allowed for costs benefiting both the company and investors.
• Detailed invoice documentation and clear cost allocation are required.
• The case was remanded for reassessment based on these principles.

Source: alvarezandmarsal.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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