New Measures to Combat VAT Fraud

Published: 17 February 2026
Proposed entry into force: 1 July 2026
Issuing authority: Swedish Ministry of Finance (Finansdepartementet)

Executive summary

In Proposition 2025/26:128, the Swedish Government proposes a package of strengthened preventive and control measures to combat VAT fraud, particularly in cross‑border EU trade. The core objective is to prevent fraudulent actors from gaining or retaining access to the VAT system, rather than only addressing fraud after losses have occurred. [regeringen.se]

Background and policy rationale

The Government highlights that VAT fraud remains a significant problem in intra‑EU trade, leading to substantial revenue losses for the Swedish state. Fraud schemes often exploit:

• the VAT registration process,
• the use of valid VAT identification numbers in EU trade, and
• refund claims for excess input VAT.

To reduce these risks, the proposition focuses on earlier intervention points—registration, verification, and continued eligibility within the VAT system. [regeringen.se]

Key proposed measures

1. Stronger controls at VAT registration

The proposal gives the Swedish Tax Agency (Skatteverket) expanded powers to:

• carry out more extensive checks when a person or entity applies for VAT registration,
• assess whether there is a risk of intended VAT fraud already at the registration stage, and
• refuse VAT registration where such risk is identified. [regeringen.se]

2. Refusal and de‑registration from VAT

Skatteverket would also gain clearer authority to:

• deny VAT registration, or
• de‑register an already registered person,
  if the circumstances indicate misuse or intended abuse of the VAT system. [regeringen.se]

This shifts enforcement from reactive audits to structural access control.

3. Invalidating VAT numbers in VIES

A central element of the proposal is the ability for Skatteverket to:

• mark a Swedish VAT registration number as invalid in the EU VAT Information Exchange System (VIES).

This measure directly affects intra‑EU supplies and acquisitions, as a valid VAT number is a key condition for applying VAT exemptions and reverse‑charge mechanisms in cross‑border transactions. [regeringen.se]

4. Limiting refunds of excess input VAT

Under certain conditions, the Tax Agency would be allowed to:

• decide that excess input VAT should not be credited or refunded.

This targets fraud models where refund claims are made without corresponding genuine taxable activity. [regeringen.se]

Legislative intent

The Government states that the overarching purpose of these measures is to:

• prevent VAT fraud, and
• reduce tax losses associated with such fraud, especially in EU cross‑border contexts. [regeringen.se]

Entry into force

The proposed legislative changes are intended to enter into force on 1 July 2026. [regeringen.se]

Why this matters in an EU / ViDA context

While the proposition is national Swedish legislation, its focus on:

• VAT registration controls,
• VIES validity, and
• preventive denial of system access

aligns closely with the broader EU policy direction under ViDA, where real‑time data, system integrity, and fraud prevention are increasingly emphasized.

For multinational groups and shared‑service models, this proposal signals:

• higher scrutiny at registration level, and
• increased operational risk if VAT numbers are challenged or invalidated in VIES.