Effect of EU Court Ruling on VAT Deduction Rights for Business Expenses in Sweden

• The right to deduct VAT requires costs to be for one’s own business operations
• If part of the purchases made are not used for the taxable person’s own transactions but for transactions performed by others, the direct and immediate link between these purchases and the taxable person’s taxable transactions is partially broken
• To determine the extent of the deduction right in such cases, it is necessary to assess to what extent the services in question have actually been provided to enable the taxable person to carry out their own taxed transactions
• This assessment can be based on the service provision agreements and the economic and commercial reality
• The person requesting the deduction must be able to demonstrate their use for transactions that qualify for a deduction
• The fact that the purchased services are provided to multiple recipients at the same time seems irrelevant in this context

Source: www4.skatteverket.se

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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