Global Daily Tax News, Swedish Tax Agency Gains Power To Challenge VAT Fraud, (May 13, 2026)

Sweden's parliament has approved a legislative proposal to strengthen the tax agency's powers to better tackle VAT fraud.

The legislation will empower the Swedish Tax agency to refuse an application for registration for value-added tax and remove a taxpayer's VAT registration.

Further, the agency will be able to notify that a VAT registration number is invalid in EU systems.

Finally, the legislation will empower the agency to refuse to recognize a taxpayer's excess input tax credits where there is a risk of tax evasion.

The legislation will become effective from July 1, 2026.