Background & Purpose

Previously, there was an exemption for verbal statements regarding certain tax offences, creating a loophole that the government wanted to close to combat tax evasion and complex VAT frauds.

The Decision

The Swedish parliament approved the government's legislative proposal to remove the exemption for verbal statements and broaden the definition of incorrect information regarding VAT fraud.

Does this affect you?

  • Business owners and entrepreneurs: Must be extra careful with verbal information provided to authorities regarding taxes, as it can now lead directly to criminal liability.
  • Individuals handling VAT transactions: Risk being penalized for incorrect statements if they are involved in transactions connected to VAT fraud that they should have been aware of.

In Practice

  • Verbal statements can now lead to criminal liability under the Tax Offences Act.
  • The exception protecting verbal information regarding careless tax returns and tax accounting offences is removed.
  • Providing VAT information linked to a VAT fraud is officially classified as an incorrect statement if the person knew or should have known about the fraud.
  • The updated regulations come into full effect on April 1, 2026.