Sweden Moves to Grant Tax Agency New Powers Against Tax Fraud

Sweden is seeking to expand the tax administration’s powers to combat value-added tax fraud, under a government proposal published Tuesday and submitted for parliamentary approval.

Key measures include enhanced vetting for VAT registrations, greater authority for the office to refuse or revoke existing registrations, speedy flagging of unreliable taxpayers in EU’s VAT validation tool, and new restrictions on VAT refunds amid tax evasion risks.

The proposal, if approved, is expected to take effect July 1.

“To strangle the criminal economy, we must tackle tax fraud,” Finance Minister Elisabeth Svantesson said in a press release. “The Swedish Tax ...