Supreme Court Upholds Deductibility of Consultancy Fees for Business Operational Improvements

• Swedish Supreme Administrative Court ruled in favor of OneMed Sverige AB on consultancy fees and input VAT deductibility.
• OneMed reimbursed its parent company for consulting services aimed at cost reductions and operational improvements.
• Swedish Tax Agency and lower courts initially denied deduction, linking costs to the sale process.
• Supreme Administrative Court clarified services benefited OneMed’s business operations, making expenses deductible.
• Expenses for efficiency measures are considered incurred to acquire and retain income.
• Court allowed deduction for input VAT as costs were part of OneMed’s business expenses.
• Judgment confirms expenses for improving cost structure may be deductible if they benefit the business.
• Companies can generally deduct consultancy fees and input VAT if services benefit business operations.
• Decision allows reassessment of denied input VAT deductions for consultancy services aimed at cost reductions.

Source: jdsupra.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.

---

---