Sweden Tax Agency Explains Court of Appeal Decision on Deduction of Input VAT

The Swedish Tax Agency Feb. 2 issued Statement No. 8-2749880, explaining the Court of Appeal’s decision in Case No. 7254-7255-22, deduction of input VAT in investment activities. The taxpayer, a Swedish company, sought clarification as to whether the VAT group could be deducting input tax on costs for its investment activity through a private equity fund. The Tax Agency explained that: 1) the VAT group engages in share investments and management to enhance company values, sell shares at a profit, and generate investor income; 2) the VAT group offers fee-based services to investment companies, which are a minor part of ...