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VAT Updates: Sweden‘s Memorandum on European VAT Directive Changes

VAT in the Digital Age (ViDA) changes that are taking place across Europe keep on bringing new discussions to life. As the changes will affect all countries in the EU, the nation states express their opinions on the problem areas of the suggested change packages. This month, the European Commission will summarise the feedback received. Among the feedback givers is Sweden. On January 2023, Sweden raised its concerns by issuing a memorandum.

Before we begin, you can learn more about VAT in the Digital Age by reading our earlier article here.

The Fact Memorandum No. 2022/23:FPM37 on Directive 2006/112/EC and VAT in the digital age issued by the Swedish Ministry of Finance includes Sweden’s take on the platform economy changes and VAT reporting.

According to the Swedish Ministry of Finance, the ViDA changes aimed to fight VAT fraud are appreciated, but the country highlights the need for VAT rules to stay simple and clear while minimizing administrative burden for businesses.

In the memorandum, Sweden proposed to implement national in-country and cross-border electronic reporting mandates with a single VAT registration point so that the transactions are better traced for input VAT deductions. It also proposed a two-day reporting requirement for transactions. At the same time, Sweden proposed to exempt VAT from platform sellers’ underlying services.

Stay tuned and follow our insights section to learn more about the upcoming action in implementing VAT in the Digital Age package. And if you want to be well-prepared to navigate the VAT changes, get in touch with our team for individualized support.