Sweden Permits Input Tax Deduction on Some Restructuring Costs

On May 16, Sweden’s Supreme Administrative Court ruled that a “parent company is allowed to deduct input VAT in respect of consultancy services acquired in connection with the sale of shares in subsidiaries during the restructuring of operations,” on the grounds that “the costs of the services [are] considered to have a direct and immediate link with the parent company’s overall financial operations.” The “direct and immediate link” test used by the court has been affirmed several times by the Court of Justice of the European Union. The full opinion of the Swedish court can be found here.

The post Sweden Permits Input Tax Deduction on Some Restructuring Costs appeared first on Sovos.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Lee Pender

Share This Post