Sweden Tax Agency Issues Guidance on Right to Deduct VAT for Sale of Shares in Subsidiaries

The Swedish Tax Agency June 18 issued Statement No. 8-2948417, explaining the Administrative Court of Appeal’s decision in Case Nos. 5919-5220-23 and 5922-23, on the right to deduct input tax in connection with the sale of shares in subsidiaries. The taxpayer, a holding company, claimed a deduction of input tax for costs related to the sale of shares in a subsidiary. The taxpayer provided taxable services to the subsidiary and treated the sale as an exempt transaction occurring in the course of its economic activity. The court held that the costs incurred for the sale of shares had a direct ...