Sweden Tax Agency Updates Guidance to Reflect ECJ Decision on Use of Purchased Goods, Services

The Swedish Tax Agency Oct. 7 updated guidance to reflect a European Court of Justice (ECJ) decision regarding the deductibility of input VAT paid for goods or services used other than as originally intended. The guidance clarifies that actual use takes precedence over intent, and that: 1) input VAT paid for consulting services relating to a market survey carried out with the intent to acquire shares in another company is deductible, regardless of whether the acquisition ultimately occurs, to the extent that it is attributable to economic activity; and 2) VAT paid for loan payments where the intended investments weren’t ...