Sweden’s Government Submits Cross-Border VAT Bill to Parliament Implementing ViDA Rules
On 9 June 2026, Sweden’s Ministry of Finance (Finansdepartementet) submitted Proposition 2025/26:278, “Teknisk översyn av mervärdesskattereglerna vid gränsöverskridande handel” (Technical Review of the VAT Rules for Cross-Border Trade), to the Riksdag.
The bill amends the Swedish VAT Act (mervärdesskattelagen, 2023:200) to implement elements of the EU’s VAT in the Digital Age (ViDA) package, with a proposed entry into force of 1 January 2027.
Background
The proposal follows the EU’s adoption of the ViDA legislative package, which amends Council Directive 2006/112/EC to modernize VAT rules for cross-border trade, digital platforms, and single VAT registration. Sweden’s transposition work on ViDA is proceeding on two separate tracks.
This bill addresses the cross-border trade, special-scheme and electronic-interface rules that must be in force from 1 January 2027. Separately, following a directive issued by the Ministry of Finance on 5 February 2026, a government-appointed commissioner is examining whether Sweden should introduce a domestic mandatory e-invoicing and digital reporting regime under ViDA’s Pillar 2; that broader inquiry is due to report no later than 30 November 2027 and is not affected by this bill.
The proposal itself was first published as a departmental memorandum (Fi2026/00342) on 13 February 2026, went through public consultation (remiss), was reviewed by the Council on Legislation (Lagrådet) via a Lagrådsremiss on 13 May 2026, and was submitted to the Riksdag as Proposition 2025/26:278 on 9 June 2026.
The Legislative Change
The proposition amends the VAT Act’s rules on cross-border trade, the chargeable event and the point at which the obligation to account for VAT arises, and the special schemes (the non-Union, Union and import schemes used for OSS/IOSS reporting). Key elements include:
- Limited extensions to the scope of the non-Union and Union special schemes (OSS).
- New rules governing how output VAT is accounted for within the special schemes, and for taxable persons that facilitate supplies of goods through an electronic interface.
- Clarifications and minor technical amendments to the place-of-supply and time-of-supply rules for cross-border transactions, aligning Swedish law with the amended EU VAT Directive.
Scope
The changes apply to businesses using the OSS or IOSS special schemes for cross-border B2C supplies of goods or services, and to taxable persons operating electronic interfaces (marketplaces or platforms) that facilitate goods supplies by other sellers.
Timeline
13 February 2026: departmental memorandum published (Fi2026/00342). 13 May 2026: Lagrådsremiss (draft submitted to the Council on Legislation). 9 June 2026: Proposition 2025/26:278 submitted to the Riksdag. Expected autumn 2026: review by the Riksdag’s Committee on Finance (Skatteutskottet) and plenary vote. 1 January 2027: proposed entry into force.
Businesses Affected
E-commerce sellers and marketplaces using OSS or IOSS for supplies connected to Sweden, and platform operators that facilitate cross-border goods transactions through an electronic interface, should assess the proposal against their current VAT accounting processes.
Required Actions
Affected businesses should:
- Monitor the bill’s progress through the Riksdag’s Committee on Finance ahead of the expected autumn 2026 vote.
- Review OSS/IOSS reporting workflows for compatibility with the revised output-VAT accounting rules.
- Assess whether platform or interface activities newly trigger output VAT accounting obligations.
Track the separate, ongoing ViDA Pillar 2 inquiry into Swedish domestic e-invoicing and digital reporting, which could result in additional obligations after its November 2027 reporting deadline.
Practical Implications
The amendments are primarily technical and clarifying in nature, aligning Swedish domestic law with the EU VAT Directive as amended by ViDA. Even so, taxable persons that facilitate supplies through an electronic interface should confirm whether the new output-VAT accounting rules change their reporting position, and OSS/IOSS users should build in time to update reporting templates and internal controls ahead of the 1 January 2027 effective date.
Expected Next Steps
The Riksdag’s Committee on Finance is expected to review the proposition over the coming months, with a plenary vote anticipated before the end of 2026 so the law can take effect on schedule on 1 January 2027. Separately, businesses should continue to watch the broader Swedish ViDA e-invoicing inquiry, which will determine whether Sweden introduces its own mandatory digital reporting or e-invoicing regime once the commissioner reports by 30 November 2027.
How Can KGT Support You?
KGT builds SAP-integrated e-invoicing add-ons and supports SAP Document and Reporting Compliance (SAP DRC) implementations for continuous transaction control and digital reporting regimes worldwide. Where SAP DRC does not yet offer native local coverage, KGT develops certified add-ons—including data extraction, validation, and a reporting cockpit—to bridge the gap and keep clients compliant on schedule.
As an SAP partner for e-invoicing and tax technology services and an SAP Build partner, KGT supports clients through installation, configuration, customization, testing, and training, helping them plan ahead of legislative deadlines rather than react to them. If you would like to discuss the impact of this development on your SAP landscape, we are happy to arrange a call.
