ViDA Confirmed for 2030, and Other Swedish Accounting News for 2025 Q2

The second quarter of the year is the perfect time to reflect on Q1 performance, evaluate any newly adopted accounting, tax, or payroll strategies, and plan ahead for the rest of the year’s success.

This year, Q2 also brings with it new considerations for foreign-owned businesses in Sweden. These include a major upcoming change to Value Added Tax (VAT) management, thanks to the confirmation of ViDA for 2030.

What is ViDA?

Short for ‘VAT in the Digital Age’, ViDA is a new European Union (EU) initiative. It aims to combat VAT fraud by introducing EU-wide e-invoicing, plus other measures to facilitate a simpler, more transparent, and more streamlined approach to VAT management.

It is hoped that ViDA will close the gap between the correct VAT revenue and the actual amount collected, known as the ‘VAT compliance gap’. In 2022, the EU VAT compliance gap amounted to approximately €89 billion, or 7% of the VAT total tax liability (VTTL). While Sweden’s VAT compliance gap is below average at 5.5%, this still resulted in a loss of €3,039 million in 2022.

What are the 3 Key Components of ViDA?

1. Real-time digital reporting. ViDA will ultimately introduce mandatory, standardised e-invoicing across EU member states. By promoting greater transparency, it is hoped that the move to digital reporting for cross-border trade will reduce VAT fraud by up to €11 billion annually.
2. Updated platform economy rules. Under ViDA, online platforms that facilitate passenger transport and short-term accommodation services will be responsible for collecting and remitting VAT when their users do not.
3. Single VAT registration. This will allow businesses to manage EU-wide tax obligations through one VAT registration system, simplifying and streamlining tax administration for companies operating across multiple borders.

When Will ViDA Come into Force?

ViDA was formally confirmed by the EU on March 11, 2025, and while various changes are planned over the next five years, ViDA’s mandatory e-invoicing regulations will not come into force until July 1, 2030.

What Does this Mean for Foreign-owned Businesses in Sweden?

ViDA is good news for EU businesses. As well as cracking down on VAT fraud, it has also been estimated that this initiative will slash administrative and compliance costs for businesses by upwards of €4.1 billion over the next decade. It is hoped that simpler reporting and clearer guidelines will result in fewer costly mistakes by businesses.

While ViDA will not become mandatory until 2030, now is the time to get prepared and make the transition to e-invoicing. If you are ready to upgrade to e-invoicing or want to switch to a new paperless system, choose one that meets current EU standards (e.g., PEPPOL). This way, you are much less likely to need to sink additional funds into converting again in a few short years. If you are unsure about how to set your business up for ViDA, arrange a consultation with one of Leinonen’s Swedish tax experts.

Other Swedish Accounting News for Businesses in Q2

• Changes to K1 Regulations
  The Accounting Board has altered K1 regulations for sole proprietors who prepare simplified annual accounts. As well as introducing alterations to the depreciation basis for machinery and equipment, the K1 regulations now have the same structure as the other K regulations for easier understanding and readability. To find out more on important changes to K2 and K3 regulations, read our article here.
• Proposal of a General Reverse Charge for VAT
  SRF consultants have called for a general reverse charge as a measure to reduce VAT fraud. If this was introduced, buyers would always be liable for VAT – not suppliers.

Leinonen are Helping Foreign-owned Businesses in Sweden Prepare for ViDA

While e-invoicing is not yet mandatory in Sweden, getting started in advance is highly recommended. Switching from paper invoicing to e-invoicing is a complex process that should not be rushed. By getting it right the first time, you will avoid headaches and unexpected costs to your business down the line.

Thankfully, you can streamline the process and save money by seeking advice from Swedish cross-border tax experts. With clients across 18+ EU countries and over a decade in the Swedish market, Leinonen’s accounting, payroll, and tax consultants are fully equipped to help foreign-owned SMEs in Sweden prepare for ViDA.

Contact us today to arrange a consultation with a local tax and accounting specialist.