Swedish Tax Court Rules in Favor of Deductibility of Input VAT for Cross-Border Services

• The Swedish Tax Court issued Advance Notice No. 102-24/I on June 4.
• The notice clarifies the deductibility of input VAT for cross-border services.
• A company providing legal and administrative services planned to offer services to a Luxembourg-based institution.
• The company argued for a right of deduction for input VAT on costs for services to another EU country.
• The Tax Agency disagreed, stating no entitlement under the VAT Act or Directive.
• The Tax Court ruled in favor of the company.
• The court found the company entitled to deduct input VAT for service provision costs.

Source: news.bloombergtax.com

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