- The Advocate General of the European Court of Justice dismissed the Tax Agency’s claim that a parent company’s total costs should be included in VAT calculations for subsidiaries with limited deduction rights.
- The case involves a parent company providing management services and highlights that only costs with VAT charged should be included, excluding salary and VAT-free purchase costs.
- This opinion is not yet final, as the European Court of Justice and the Supreme Administrative Court will make the ultimate decision, but it is expected to align with the Advocate General’s views, impacting parent companies with non-deductible subsidiaries.
Source The Swedish VAT House
See also
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