"This is a positive decision. Our offer is already competitive - and now we can further increase our competitiveness. We can compete on the same terms as other European exchanges," comments Carl Johan Högbom, President of the OM Stockholm Exchange.
Since the former Stockholm Stock Exchange was privatised in 1993, the Tax Authority has deemed trading to be subject to VAT. However, following Friday's decision share trading now becomes exempt under the terms set out in the VAT legislation. This is also in line with the majority of other EU countries and is also the reason why the State will repay VAT that has been paid by OM. The VAT repayment for the period 1995 - 1998 has a positive effect on income of around SEK 60 million. A request will be lodged for a similar revision to be made of the period January 1 1999 - February 29 2000. The Tax Authority has still not made a decision on repayments for the years 1993 and 1994 on the grounds that Sweden was not a member of the EU at that time.
As a consequence of the Tax Authority's decision, the OM Stockholm Exchange will today publish a new price list for equity trading which will fully reflect the net effect of the VAT exemption.
