- The Swedish Supreme Administrative Court (SAC) has limited the application of VAT-neutral transfers of a going concern (TOGC) to cases where the recipient can deduct input VAT.
- The SAC ruled that TOGC provisions do not apply if the recipient’s activities are VAT-exempt and they cannot deduct input VAT.
- The Swedish Tax Agency (STA) updated its guidance to reflect that TOGC is only VAT-neutral if VAT would be chargeable and the recipient can deduct input VAT.
- These changes restrict VAT-neutral restructurings and business transfers, especially for companies with VAT-exempt or mixed activities.
Source: internationaltaxreview.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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