Sweden sharpens its anti-VAT fraud measures from 1 July 2026
On 17 February 2026, the Swedish Government announced a Bill to strengthen the fight against VAT fraud, granting the Swedish Tax Agency significantly expanded enforcement powers. The proposal, now submitted to the Riksdag, is designed to “strangle the criminal economy” by intervening earlier in the VAT lifecycle.
The measures are expected to enter into force on 1 July 2026.
VAT registration; VIES; and deduction controls
The bill introduces four key enforcement tools:
1. Enhanced scrutiny at VAT registration
The Tax Agency will gain broader powers to examine applicants at the point of registration. This is a clear response to missing-trader and carousel fraud models that rely on rapid entity formation.
2. Refusal or deregistration powers
Authorities will be able to refuse VAT registration or deregister businesses where risk indicators suggest fraud or serious non-compliance.
3. VIES invalidation of VAT numbers
The Agency may designate a Swedish VAT number as invalid in the EU’s VAT Information Exchange System (VIES).
VIES, operated by the European Commission, enables cross-border traders to verify counterpart VAT numbers. An “invalid” status effectively disrupts intra-EU trade flows, as customers will be unable to rely on zero-rating rules.
4. Blocking excess input VAT repayments
Where there is a risk of tax evasion, the Tax Agency may decide not to credit excess input VAT. This targets repayment fraud, a significant leakage area in high-value supply chains.
For multinational groups operating cross-border supply chains, the VIES invalidation mechanism is particularly significant. A temporary or permanent invalid status could disrupt zero-rated intra-EU supplies and create immediate commercial friction.
Read more in our Swedish VAT guide.
