The updated VAT guidance on business asset transfers is effective from 30 September.
Sweden’s government has introduced new guidance on the application of value-added tax (VAT) to asset transfers within business transfers, effective 30 September 2025.
Under the revised rules, for a business transfer to qualify as VAT-exempt, two key conditions must be met: (1) VAT would normally apply to the transfer of the assets under other provisions of the VAT law, and (2) the recipient of the assets must be eligible to deduct this VAT.
If the recipient has no or limited rights to deduct input VAT—such as in cases of mixed-use activities—the exemption will not apply in many scenarios.
This update replaces previous positions and aligns with a recent Supreme Court ruling (HFD 2025 ref. 32), which clarified the interpretation of Chapter 5, Section 38 of the VAT law in line with the EU VAT Directive.
