Nearly half of small business owners are opposed to mandatory digital invoicing when Swedish companies do business with each other. Meanwhile, the government is investigating whether the Swedish Tax Agency should receive real-time access to companies’ transaction data – even though the EU does not require Sweden to introduce such a system for domestic trade.

A new survey from Företagarna shows significant resistance to making electronic invoicing mandatory even for transactions between Swedish companies. The survey was conducted in September and includes about 1,200 of the organization’s member companies.

Almost half of respondents are negative towards the legal requirement, while just under a quarter are positive. Many businesses still use invoicing solutions that would not meet the new technical standards. Only 43 percent say they use e-invoices to any extent, while 84 percent use PDF invoices or other electronic formats not classified as e-invoices. A quarter still use paper invoices.

Companies have been able to indicate multiple invoicing methods, which explains why the total shares exceed 100 percent. Among those already using e-invoices, it is used in less than half of transactions for six out of ten companies.

The background is an extensive change to the EU’s VAT system, which will eventually require certain business-to-business transaction details to be automatically reported to tax authorities. Sweden is now considering going further than the EU’s mandatory regulations.

The Tax Agency May Receive Data Directly

The new EU regulations, known as VAT in the Digital Age (VIDA), mean that companies engaging in specific cross-border trade within the EU from July 1, 2030, must use electronic invoices in a standardized format.

This is not about regular PDF invoices sent by email, but digital documents where the data is structured so that accounting systems can process them automatically. At the same time, transaction details must be sent to tax authorities in real or near real-time.

According to the Swedish Tax Agency, the change means the authority will receive details about relevant cross-border business at the time of invoicing. This information can also be exchanged between EU member states’ tax authorities to detect suspected VAT fraud.

However, the EU’s decision does not require Swedish companies to use the same system for domestic business transactions. Member states can decide for themselves whether to introduce corresponding national requirements.

Despite this, the government has tasked a special investigator with determining whether both mandatory e-invoicing and digital reporting should be introduced for domestic transactions as well. The assignment is stated in the committee directive from February this year.

The investigator is also to analyze how the Swedish Tax Agency should be allowed to use the data and what costs might arise for companies and authorities. The assignment is to be reported no later than November 30, 2027. No decision to introduce requirements for domestic trade has yet been made.

Företagarna Warns of More Imposed Regulations

The resistance in Företagarna’s survey is partly due to the fact that many smaller businesses do not see the need for more advanced invoicing systems.

Among the most common reasons companies do not use e-invoices are sending too few invoices to justify it, customers not requesting the solution, and that current invoicing methods already work well.

The organization’s view is that companies should be able to decide for themselves which invoicing method suits their business, based on customer preferences and existing agreements. They therefore oppose the state introducing general requirements that go beyond the EU’s mandatory rules.

For a small company with few invoices, a new system could mean costs for software, technical adjustments, and changed administrative routines. However, how large these additional costs would be is not yet determined, as the investigation has not presented any final proposal.

VAT Fraud Within Sweden

At the same time, authorities have a strong interest in introducing digital reporting nationally as well.

The Swedish Tax Agency has previously described how criminal networks use companies and fake invoices to try to extract money from the VAT system. In 2024, the authority, according to its own information, stopped improper VAT payments totaling SEK 534 million.

The authority has emphasized that digital reporting of domestic transactions could hinder such schemes, since invoice details would then become available for control significantly earlier than today.