Background & Purpose

VAT fraud is a major problem where companies avoid paying taxes, which hurts the Swedish economy and creates unfair competition.

The Decision

The Swedish parliament decided to give the Tax Agency more power to control, deny, or cancel VAT registrations for companies suspected of fraud.

Does this affect you?

  • Business owners: Companies must ensure their tax reporting is accurate, as the Tax Agency now has more power to cancel registrations if fraud is suspected.
  • Tax accountants: Professionals handling VAT must be aware of the new, stricter control criteria to ensure their clients remain compliant.

In Practice

  • The Tax Agency can now perform stricter checks when a company applies for a VAT number.
  • The agency has the right to deny or remove a company's VAT registration if they suspect fraud.
  • VAT registration numbers can be marked as invalid in the EU system to prevent cross-border fraud.
  • The Tax Agency can stop paying out tax refunds if they believe the money is at risk of being part of a tax evasion scheme.