Sweden Tax Court Issues Advance Notice on Deductibility of Input VAT in Providing Cross-Border Services

The Swedish Tax Court June 4 issued Advance Notice No. 102-24/I, clarifying the deductibility of input VAT in providing cross-border services. The taxpayer, a company providing legal and administrative services, planned to provide transaction structuring services to a Luxembourg-based qualified securitization institution. The taxpayer argued that a right of deduction exists for input VAT attributable to costs for providing services to another EU country, provided that a right of deduction would have existed if the services were provided in Sweden. The Tax Agency disagreed, contending that the taxpayer wasn’t entitled to deduct input VAT under the VAT Act or the ...