Swedish Tax Agency Addresses VAT Fraud Risk as Food Tax Rules Change

On April 1st, Sweden will implement a reduced Value Added Tax (VAT) rate of 6 percent on restaurant takeaway food, while the VAT on food consumed on-site remains at 12 percent. This change has raised concerns about potential fraud, as restaurants could misclassify served food as takeaway to benefit from the lower rate. The Swedish Tax Agency (Skatteverket) and labor unions are addressing the issue, offering guidance to employees and employers.

The Potential for Abuse

The dual VAT rates create an opportunity for restaurants to falsely categorize on-site dining as takeaway, retaining the difference in VAT. This practice occurred previously when a lower VAT rate existed for takeaway food between 1996 and 2012. Restaurateur Johan Jureskog recently expressed concern to Göteborgs-Posten (GP) that some establishments might attempt this practice. Göteborgs-Posten

Skatteverket’s Perspective

Kerstin Alvesson, a legal expert at the Swedish Tax Agency, acknowledges the risk but remains cautiously optimistic. She notes that while some individuals will always attempt to exploit the system, customers often identify discrepancies on receipts and report them to the agency. Alvesson also suggests that the potential financial gain may not be substantial enough to justify the risk of getting caught.

Alvesson stated that the Swedish Tax Agency was informed by legislators that the new VAT solution would create problems, but the decision was ultimately a political one. She indicated that, as of now, no special audit of the industry has been scheduled, as the VAT reduction has not yet taken effect.

Guidance for Employees

Viktoria Melin, ombudsman and treasurer for the HRF department Stockholm-Gotland, emphasizes that employees should refuse to participate in any misclassification of food orders. Registering served food as takeaway to avoid VAT is considered cheating.

Melin clarifies that while employees generally must follow employer instructions, this obligation does not extend to illegal or unethical activities. She advises employees to voice their concerns directly, document any pressure to misreport sales, and seek support from their trade union or workplace representative.

Melin also highlights the whistleblower function as a recourse for employees facing recurring or deliberate errors that the employer fails to correct.

How to Request Information from Skatteverket

Individuals can contact the Swedish Tax Agency to request public information. The easiest method is to call their information line:

• Within Sweden: 0771-567 567
• Outside Sweden: +46 8 564 851 60

Email inquiries are also accepted, but any email sent will become a public document subject to potential access by the public and media. Swedish Tax Agency – Public Information

Key Takeaways

• A lower VAT rate for restaurant takeaway food begins April 1st.
• The Swedish Tax Agency is aware of the potential for VAT fraud.
• Employees are advised not to participate in misclassifying food orders.
• Employees have rights and resources available to them if pressured to engage in fraudulent activity.