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Sweden reviews live VAT reporting and e-invoicing

Sweden to follow Italy, Hungary and Spain with Digital Reporting Requirements (DRR) for 2024?

The Swedish tax authority, Skatteverket, and Ministry of Finance are reviewing introducing Digital Reporting Requirements (DRR) for VAT invoice reporting to help tackle VAT fraud and close the VAT gap. This would likely be in coordination with the EU VAT in the Digital Age pan-EU reforms which could come 2023/24.

Reluctant adopter for e-invoicing?

The authorities have been in discussions with large accounting firms, tax tech providers and other tax authorities about the best formats to select.  However, Sweden, with one of the lowest VAT Gaps in the EU – the measure of VAT collected versus expected – it will be a sceptical candidate for the major overhauls and costs required.  But since the rest of the EU is progressing similar reforms, it is no doubt wanted to keep up-to-date on the different models.

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Since 1 April 2019,  all Swedish public sector purchases must be billed via e-invoice according to a European standard. This means that, a public sector supplier must send e-invoices, and all public sector organisations must be able to receive these. Paper and PDF invoices are no longer acceptable. From 1 December 2019, all contracting entities in public sector (central government agencies, municipalities and regions) will have to be registered in Peppol. In Sweden, the standard which meets the new law’s requirements is known as Peppol BIS Billing 3.0. But there is no governmental solution or platform.

Models for live invoice reporting

The Swedish authorities may evaluate some of the following models:

  1. Standard Audit File for Tax (SAF-T), which will replace the traditional VAT return in neighbouring Norway in 2022. This form of Periodic Transaction Controls (PTC) is also being considered by the EU VAT in the Digital Age review (see below)
  2. Live transaction reporting, which has been adopted to capture invoices immediately after they have been issued to customers. This has been adopted in Spain and Hungary
  3. E-invoicing, requiring real-time pre-clearance of sales invoices by the government prior to issuing them to customers. This has bene adopted in Italy SdI from the start of this year, and will be mandated in Poland and France.

EU Digital Reporting Requirements review underway

EU VAT in the Digital Age reforms include a channel for harmonised Digital Reporting Requirements (DRR) and  Continuous Transaction Controls (CTC) by EU states. This grew from the 2020 Tax Action Plan  proposals for a fairer and more efficient EU tax regime.

Monitor VAT Calc’s international live VAT invoice transaction and e-invoice tracker on real-time transaction-based tax reporting.

Europe e-invoicing and live reporting

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