A new Swedish bill adopted on May 6 2026 empowers the Swedish Tax Agency to deny input VAT credits for significant excess amounts during audits. The change expands the agency’s authority to challenge VAT recoveries that exceed allowable limits, requiring businesses to review their input VAT claims for compliance.
“Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.”
VatCalc · about 2 months ago
The EU Court of Justice clarified that loyalty points in the Lyko case are discounts, not vouchers, because they cannot be redeemed independently of a purchase. This means VAT is charged on the full price of the initial purchase, and redemption of points reduces the VAT base of the subsequent purchase, while unused points require no VAT adjustment. The ruling also indicates that loyalty schemes that allow independent payment are treated as vouchers, triggering VAT at redemption.
Riksdagen · 2 months ago
Sweden’s Riksdag approved a temporary reduction of the VAT rate on food from 12% to 6% effective 1 April 2026, lasting until 31 December 2027. The change aims to support household finances during the period.
VatCalc · 2 months ago
The Swedish Parliament approved a temporary cut of the food VAT rate from 12% to 6% effective 1 April 2026 until 31 December 2027. A food commission will monitor supermarket prices to ensure savings are passed on, and the measure is part of a broader economic package that includes increased housing allowances for low‑income families.
LinkedIn Article by Bruno Gasparotto · 2 months ago
A preliminary ruling before the CJEU (Case T‑96/26, TellusTax Advisory) examines whether a Swedish supplier’s right to deduct input VAT can be limited because the services were provided to a Luxembourg securitisation vehicle that benefits from a fund‑management VAT exemption. The Swedish Tax Authorities denied the deduction, arguing that VAT must have been due in Luxembourg for the deduction to apply. The outcome will have implications for securitisation vehicles and the broader fund industry.
VatCalc · 3 months ago
Sweden has introduced a new bill to strengthen anti‑VAT fraud enforcement, effective 1 July 2026. The legislation expands the Swedish Tax Agency’s powers, including enhanced scrutiny at registration, refusal or deregistration of VAT registrations, invalidation of Swedish VAT numbers in the EU VIES system, and blocking excess input VAT repayments. These measures aim to disrupt missing‑trader, carousel, and repayment fraud across the EU.
VatCalc · 3 months ago
Sweden is preparing to overhaul its One‑Stop Shop (OSS) and e‑commerce VAT rules effective 1 January 2027. The changes clarify deemed‑supplier status for platforms, tighten distance‑sales threshold conditions, redefine the interaction with the domestic threshold, expand the third‑country OSS regime, and refine input‑VAT deduction and refund regimes.
It allows the Swedish Tax Agency to deny credits for significant excess input VAT during audits.
The bill was adopted on May 6 2026.
All businesses claiming input VAT in Sweden are affected, as they may have credits denied if the excess amount is deemed significant.
This summary was published on VATfaqs.com on 7 May 2026. It relates to VAT developments in Sweden. The original source is Law360.
