- The Swedish Tax Agency’s method for reassessing VAT bases on intra-group services has been rejected by both the Supreme Administrative Court (HFD) and the EU Court of Justice.
- HFD ruled, in line with the EU Court, that the Tax Agency cannot set the market value of services provided by a parent company to subsidiaries solely based on total costs if comparable market services exist.
- Each service must be assessed individually to determine if its price is below market value, and the Tax Agency bears the burden of proof.
- The court found the Tax Agency did not provide sufficient evidence that Högkullen’s pricing was below market value, so the reassessment was overturned and Högkullen’s appeal was granted.
- The decision is seen as a welcome clarification against the Tax Agency’s previous blanket approach to VAT reassessment for intra-group services.
Source: unumtax.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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