Sweden proposes introduction of tougher anti-fraud measures from 1 July 2026

26 February 2026

Sweden has proposed new legislation to combat VAT fraud, with the bill now before the Sweden’s national parliament. The new rules, scheduled to take effect from 1 July 2026, aim to enable the tax authorities to intervene earlier in the VAT registration process and reduce opportunities for fraud before they occur. The Swedish Government has stated that these reforms are intended to disrupt missing‑trader, carousel, and VAT repayment fraud, which continue to be significant sources of tax loss both in Sweden and across the EU.

To achieve this, the Swedish Tax Agency will apply more rigorous checks during the VAT registration process and gain expanded powers to refuse or deregister VAT numbers where indicators of serious non‑compliance are identified.

The Agency will also simplify the process for flagging Swedish VAT numbers as “invalid” in the EU’s VIES system, preventing businesses from making zero‑rated intra‑EU supplies (i.e. selling or purchasing goods from businesses in other EU countries). Invalidating VAT numbers disrupts fraud schemes by stopping traders from using a Swedish VAT identity to facilitate untaxed cross‑border transactions.

In addition, the Tax Agency will have extended powers to withhold VAT repayments from certain businesses where there is a suspected risk of evasion. This specifically targets fraudulent VAT refund claims, which remain a key component of VAT fraud, and will allow authorities to block repayments until the legitimacy of the claim is verified.