Sweden Tax Agency Clarifies VAT Rules for Business Transfers

The Swedish Tax Agency Feb. 20 issued Statement No. 8-2785199, clarifying rules for VAT on business transfers. The clarification explains that: 1) the transfer of assets in a business isn’t considered a delivery of goods or services unless deductible tax is owed or a refund is granted; 2) the right of deduction is a tax-exempting right that applies to outgoing transactions, regardless of whether they are taxed or qualified exemptions, and doesn’t require deduction restrictions; 3) if conditions are met, the transfer of a mixed activity business isn’t considered a supply of goods or services; and 4) supplies of assets ...