New VAT rules – the end of all corporate restructurings?

At the same time as the state, through new legislation, intends to facilitate restructurings, a new position statement from the Swedish Tax Agency now risks, in practice, making it significantly more difficult for restructuring companies to survive, despite an approved composition.

As is well known, a new Corporate Restructuring Act is proposed to enter into force in the summer of 2022. In many respects, the new Act represents an improvement compared with the current one and can in itself be expected to pave the way for more, and at the same time more successful, restructurings.

However, the new Act risks becoming a paper tiger. According to a recent position statement from the Swedish Tax Agency, the restructuring company will be obliged to pay in full the VAT that arises when creditors credit invoices due to composition losses.

This will therefore be directly bankruptcy-inducing, since the company that obtains a composition with its creditors must be prepared to pay VAT on the entire amount that has been written off, which may involve very substantial sums. However, there is a temporary “work-around” that can be used during 2021 to avoid this effect.

On 8 June 2021, 3–4 PM, Advokatfirman Carler is hosting an exciting and timely webinar on the issue. Participating in the webinar will be, among others, attorney Nils Åberg, restructuring practitioner and partner at Carler, Mats Eliasson, a long-standing restructuring economist (additional participants will be added).

We will address the following questions:

• The Swedish Tax Agency’s new position statement that “composition VAT” falls outside the composition and the possible effects of this.
• A possible “work-around” that may work during 2021 to avoid such negative effects
• New rules on VAT on damages and effects on corporate restructurings

The target audience for the webinar is anyone who in any way comes into contact with companies undergoing corporate restructuring, e.g. on the creditor side, advisers or restructuring practitioners.

If you are interested in participating in and/or listening to an exciting discussion, you are warmly welcome to register via the link below and you will, no later than a few days before the seminar, receive a calendar invitation with a Teams link!

What?

Webinar on, among other things, how the Swedish Tax Agency’s new position statement affects the possibilities for a successful restructuring, as well as tips on a “work-around”.

When?

Tuesday 8 June at 15-16

How?

Via Microsoft Teams (link will be sent after registration)

Cost?

The event is free of charge.

Registration?

Via this link