We talk ViDA with Fredrik at the Swedish Tax Agency - part 2

Once the first half of 2030 has passed, the time is right. By then, all EU Member States will be ready to introduce mandatory e-invoicing and digital reporting for cross-border transactions within the Union.
The Swedish Tax Agency welcomes this important change.
"But if you really want to digitize here and now, you should set the same requirements for all transactions. Not just those between EU countries", says Fredrik Andersson Carlö, the Swedish Tax Agency's theme leader for transaction-based reporting.

Inexchange has done a longer interview with Fredrik. In the first part, we talked about ViDA, VAT in the Digital Age, from an overall perspective, how the preparatory work is progressing and about the complex puzzle of getting rules and systems in place.
This time we concentrate on Sweden and what ViDA means nationally and how important the renewal of the VAT Directive is for Sweden.

Will there also be a domestic law on mandatory e-invoicing for businesses and public authorities, and if so, will it come into force in the next few years?
"Our Minister for Civil Affairs, Erik Slottner (KD), has said that "100% e-invoicing is the goal". He said this a year ago at a trade fair organized by the Swedish Association of Local Authorities and Regions (SKR). He was asked by one of the moderators about e-invoicing "What is the goal?". He then said that 100% e-invoicing is the goal. But what that means in reality in terms of legislation is difficult to say. The question can of course be asked, but it is not owned by the Swedish Tax Agency but lies with the government and what they want to do."
"But for our part, from the Swedish Tax Agency's point of view, if a national law is to be introduced, it would be good that everything is implemented by 2030. But we'll see how it turns out. It is not realistic to expect that there will be anything internal to Sweden before then. Time is too short."

Probably 2030 at the earliest

What can be considered realistic?
"We don't have a precise indication of when things might start, but we understand that the legislative work might start in 2027."

Which will also take time, one might assume?
"Yes, it goes without saying that it will be difficult to reach a date before 2030. The time until then will probably be needed to ensure that the system gets started and works. From Sweden's point of view, 2030 is probably the earliest we can expect. That is the reasonable time. However, we must be ready by July 1, 2030 if we are not to violate the EU directive. However, if we consider some form of national implementation, that probably means 2030 at the earliest if there is any."

Meanwhile, other EU countries are moving faster. Germany, for example. The fact that Europe's leading economy, Germany, is introducing legislation on e-invoices is positive, isn't it?
"Absolutely. Germany is the last of the major EU countries to announce that it will introduce mandatory e-invoicing and also transaction-based reporting. They will be ready with this by 2028. Then I heard that there was talk about this at a trade fair. On the other hand, there was uncertainty as to whether they will really be ready by 2028, given where they are in the process."
"After all, many countries have postponed the introduction. A timeframe has been set and then it has not been met. A fact that is worth taking into account when we look at the Swedish part. Many have moved the goalposts because it has taken longer than they had intended. There is always the risk of delays. That is worth bearing in mind."

"Not going very fast"

Paradoxically, a number of countries with relatively fragile infrastructure, such as Botswana and Rwanda, also seem to be ahead of us.How should this be interpreted?
"This is true, but in this context there are other aspects. For a country that has not introduced any regulation in this area, beyond what the EU has decided, Sweden is doing quite well. In countries that have not had so much e-invoicing, or have not been so digital in general, there may be a greater need for the state to step forward and point the finger."
"At the same time, there may have been a greater hope in Sweden that the market will solve this itself. Sure, the share of e-invoicing is continuously increasing year after year, but it is not going very fast. This means that if we continue with the current market approach, that this will solve itself, we will be overtaken by those who think the opposite. They build their systems, which are then in place, while we passively wait to do something."

However, in an international comparison, Sweden has a manageable VAT tax gap with a shortfall of around 5.5 percent according to recent EU statistics.Perhaps we would be right to wait and see if only transactions between Sweden and another EU country have to be done electronically?
"If this reform is to be used to combat VAT fraud, or tax errors in general, national legislation is also needed. At least that is our view at the Swedish Tax Agency. ViDA itself does not offer much protection against this. The same goes for the digitization effect itself. If Sweden is to really get this through, that all companies should use e-invoicing, it is necessary that it also becomes mandatory for domestic transactions. If you really want to change and digitize here and now, you should set a requirement for all transactions. Not just those between EU countries."

Caption: The Swedish Tax Agency's largest office in Sweden is located in Sundbyberg and is called Kronan. Around 3000 employees work here.Photo: Fialotta Bratt

Source: VAT gap in the EU: 2024 report

READ ALSO: Part 1: How does the Swedish Tax Agency view the ViDA reform? Will we have uniform reporting systems in the EU? How are the preparations for ViDA going? Plus some other questions. You can find the article HERE