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  • Holding company VAT recovery on IPO and new share issue costs

    Posted by Caryn on 22 October 2020 at 12:04 pm

    The Court of Appeal in Stockholm has tried a question of the right to deduct for a holding company regarding input tax on costs in connection with an IPO and new share issue.

    The holding company was the parent company in a group consisting of approximately 75 companies. Closest to the holding company was only one subsidiary and no services for remuneration had been provided to this subsidiary. However, the Court of Appeal considered that the company had provided services to all operating companies in the group even if it had only received payment from one of the companies (a granddaughter subsidiary) and that this meant that the company had active management towards these companies.

    The company was therefore entitled to a deduction for the input tax as for a general overhead in the business. The Swedish Tax Agency appealed the ruling to the Supreme Administrative Court but did not receive leave to appeal.

    The Swedish Tax Agency does not share the Court of Appeal’s assessment and interpretation of the case law of the European Court of Justice, and considers that the right to deduct should be assessed in accordance with the criteria set by the Swedish Tax Agency in the above-mentioned position.

    Here is a link to the Swedish Tax Agency’s legal comment.

    Caryn replied 3 years, 7 months ago 1 Member · 0 Replies
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