- The issue of VAT and customer losses is a significant problem for businesses.
- Companies collected approximately 560 billion SEK in VAT for the state in 2023, costing them 17.5 billion SEK.
- The Swedish Tax Agency has tightened rules on customer losses, affecting businesses that must pay VAT even when payments are not received.
- This creates liquidity challenges, especially for small businesses.
- The measures required by the Tax Agency for customer losses are more demanding than those for accounting and income tax.
- These measures can lead to businesses filing claims with the Enforcement Authority, impacting consumers, particularly young people.
- The lack of clear legal guidance and strict application by the Tax Agency contradicts the purpose of VAT.
- The Confederation of Swedish Enterprise has proposed changes to clarify and simplify VAT rules regarding customer losses.
- Proposed changes include adjusting the tax base for anticipated losses and setting a standard rule for small claims.
- The changes aim to simplify processes, align with VAT’s purpose, and support business growth without significantly affecting public finances.
- There is a call for simpler, digital-friendly rules that support sustainable growth and competitiveness for Swedish businesses.
Source: svensktnaringsliv.se
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
