Sweden Tax Agency Comments on Supreme Administrative Court VAT Ruling for Business Transfers

The Swedish Tax Agency June 10 issued Statement No. 8-206936-2025, on the Supreme Administrative Court’s decision in case No. 507-25, on VAT treatment for business transfers. The taxpayer planned to transfer assets to a subsidiary as part of a business transfer. The Tax Agency determined that the transfer was nontaxable even if neither party had deduction rights. Upon review, the Supreme Administrative Court found that: 1) the transfer didn’t meet the condition for input VAT deduction, because the subsidiary only carried out exempt activities; and 2) allowing such VAT exempt transfers could create a competitive advantage for taxpayers using assets ...