Global Daily Tax News, Swedish Anti-VAT Fraud Legislation Now In Force, (Jul 6, 2026)

Sweden's tax agency has received new powers to challenge those engaged in VAT fraud, in legislation that became effective on July 1, 2026.

The legislation provides that the Swedish Tax Agency will be allowed to:

• expanded control options in connection with VAT registration;

• refuse registration or deregister a person from VAT;

• decide that a VAT registration number should be displayed as invalid in the EU's VAT Information Exchange System (VIES); and

• decide that excess input VAT should not be credited in cases where there is a risk of tax evasion.

Johanna Arrhen, coordinator at the Swedish Tax Agency's crime prevention department, said: "For business owners, the rules mean that the Swedish Tax Agency has greater opportunities to carry out checks when a company registers for VAT. In some cases, for example, you may need to come into one of our offices and identify yourself. In some cases, it will also be possible to refuse or remove a VAT registration if something is not correct."

"Another change is that the Swedish Tax Agency can mark a VAT registration number as invalid in the EU's common VAT system, VIES. This makes it easier to detect and stop fraudulent actors in international trade."

"The new rules also mean that the Swedish Tax Agency can pause payments of excess input VAT in certain situations. This applies, for example, if there are signs that the information on which the payment is based is not correct."

"Overall, the changes aim to create healthier competition for companies and a safer system for everyone," said Arrhen.