It has been a long wait, but now it has finally been decided.
A new government inquiry will analyse the introduction of mandatory electronic invoicing and digital reporting in Sweden.
The aim is to modernize the tax system and streamline the control of VAT.
The decision, taken at Thursday's government meeting, means that Sweden is now taking the next step to adapt to the EU directive VAT in the Digital Age.
While EU rules will require e-invoicing for cross-border trade from July 2030, the Swedish investigator will also assess whether and to what extent the requirements should apply to domestic business-to-business transactions.
Digital reporting
The proposed model means that transaction-level information will be reported digitally to the Swedish Tax Agency. This system is expected to replace the current periodic summaries.
By basing the reporting on the European e-invoice standard, the aim is to:
Reduce the tax gap: give authorities better tools to detect and prevent VAT fraud.
Reduce costs: create administrative time and cost savings for businesses.
Increase security: Minimize the risk of manual errors and invoice fraud.
Focus on simplicity
The government emphasizes that the proposals must be proportionate. In particular, the investigator will analyze the consequences for small and medium-sized enterprises to ensure that the transition is as cost-effective as possible.
The Government Offices write the following in their summary:
"The investigator shall, among other things ...
...analyze what constitutional amendments are needed to implement the EU directive in Swedish law regarding digital reporting based on electronic invoicing in cross-border transactions between companies.
...assess whether electronic invoicing and digital reporting should also be introduced for domestic transactions.
...analyze and take a position on the Swedish Tax Agency's ability to use the data collected.
...submit the necessary legislative proposals."
The commission's assignment must be reported by November 30, 2027. The results will form the basis for the legislation that shapes the future of digital business communication in Sweden.
Read more at link:
Modernized and crime-preventing VAT management (swedish)