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An overview by Skeppsbron Skatt, Taxand Sweden
The European Commission has decided to refer Sweden to the Court of Justice of the European Union for failing to align its tax rules with EU law. Since 2021, Sweden has required a 30% withholding tax on payments to contractors based in other EU or EEA countries if they lack Swedish F-tax approval – even when those contractors have no taxable presence in Sweden.
The Commission argues this breaches the EU’s freedom to provide services. Despite formal notices in July 2023 and a reasoned opinion in May 2024, Swedish authorities have not resolved the issue, prompting the Commission to take legal action.
Pernilla van der Capellen and Elias Högman from our Swedish member firm Skeppsbron Skatt have published a more detailed overview of this move here.
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