Sweden Tax Court Issues Advance Notice on VAT Treatment of Business Asset Transfers

The Swedish Tax Court Jan. 28, issued Advance Notice No. 76-24/I, clarifying the VAT treatment of business asset transfers. The taxpayer was the sole owner of a subsidiary, with both entities only conducting tax-exempt activities without entitlement to input VAT deductions. The taxpayer intended to transfer all of its brokerage operational activities to the subsidiary in a restructuring, and then operate as a holding company for the subsidiary’s shares. The taxpayer sought clarification on whether the transfer would be considered a supply of goods or provision of services under Chapter 5, Section 38 of the Tax Code. The Tax Court ...