Sweden Tax Agency Announces Change in Position on Deduction of Input VAT in Acquiring Subsidiaries

The Swedish Tax Agency March 21 issued Statement No. 8-2831346, and updated other guidance, to announce a change in its position on the right of parent companies to deduct input VAT related to the acquisition of subsidiaries. The Tax Agency clarified that: 1) the Supreme Administrative Court held in Case No. 3204-23, that a parent company has the right to deduct input VAT on costs incurred in acquiring a subsidiary, even if the parent only participates in the management of the acquired subsidiary’s subsidiary and not in the management of the acquired subsidiary; 2) the Tax Agency’s policy in 2019 ...