e-Invoicing in Sweden: Timeline, Guidelines, Process, and Steps for Implementation

Sweden has been utilizing e-Invoicing for decades, particularly in the public sector. The central government agencies have been mandated to accept electronic invoices since 2008, and from 2019, this obligation was imposed on all public agencies. Governed by the Skatteverket, DIGG (Agency for Digital Government), it uses Peppol BIS Billing 3.0 as the default e-Invoice format to provide secure and reliable transactions.

Sweden e-Invoicing is not mandatory for B2B transactions. However, there have been major considerations made by Skatteverket to include B2B and G2B transactions under the e-Invoice compliance, based on the EU's VAT in the Digital Age proposal. However, no specific timelines have been set. Therefore, as of now, only public entities and their suppliers must comply with e-Invoice Sweden. This blog covers e-Invoicing in Sweden, including its timeline, compliance rules, process, and how businesses can implement it smoothly.

What is e-Invoicing in Sweden?

E-invoicing in Sweden is the electronic exchange of invoices in a structured format. From 1 April 2019, all public sector suppliers were required to issue e-invoices, and all public sector contracting authorities were mandated to receive and process e-invoices in Sweden. The invoices must conform to the European Standard EN 16931 and use Peppol BIS Billing 3. The Swedish Digital Government Agency (Digg) oversees the compliance of e-invoices in Sweden, and all public bodies must be registered with Peppol. B2B e-invoicing is not mandatory but is under consideration. 

e-Invoice Implementation Timeline

Sweden's e-invoicing implementation began in 2019, focusing on public procurement, with ongoing discussions for broader adoption.

e-Invoicing Process in Sweden

Sweden follows a structured e-invoicing process using PEPPOL for seamless transactions between businesses and the public sector. Here’s how companies can issue and send e-invoices:

1. Choose an e-invoicing Solution: Businesses must opt for an e-invoicing service provider that seamlessly integrates with their existing systems and complies with the Peppol BIS Billing 3 format.
2. Create an e-Invoice: Create an invoice using the required format, ensuring the format meets Peppol standards. Make sure to feed in all the relevant information, such as supplier and receiver details, invoice details, date, amount, quantity, etc. 
3. Connect to Peppol Network: The Next step is to register with an accredited Peppol Access Point provider to send and receive e-invoices. 
4. Send Invoice to the Public Sector: Share the e-Invoice through Peppol, so that it reaches the correct contracting authority.
5. Processing and Validation: The receiving entity's solution provider validates the invoice for compliance before approval.
6. Archiving for Compliance: Store the e-invoice0 for 7 years, as mandated by Swedish regulations.

e-Invoicing Compliance Guidelines

Sweden mandates e-invoicing for public sector transactions, while its use in the private sector remains voluntary. Here are the key compliance requirements:

• Regulatory Institutions: Skatteverket (Tax Agency) and DIGG (Agency for Digital Government).
• Authenticated Formats: PEPPOL BIS 3.0, Svefaktura, and SFTI ESAP 6 Fulltextfaktura.
• Digital Signatures: Not compulsory.
• Storage Requirement: The invoices should be stored for 7 years.
• Future Development: From 1 July 2025 onwards, older formats such as EDIFACT and Svefaktura will be disallowed for use in B2G transactions.

Who Needs to Comply with Sweden's e-invoicing mandate?

Sweden's e-invoicing is mandatory for all public sector contracting authorities and their vendors. Private enterprises can adopt the use of e-invoicing on a voluntary basis, with no requirement existing as yet within the law.

Benefits of e-Invoicing in Sweden

e-Invoicing improves efficiency, encourages compliance, and simplifies transactions for companies and public sector entities.

• It minimizes administrative costs by eliminating paper invoicing and manual data entry, thus speeding up transactions and making them more accurate.
• Automated processing accelerates payment cycles, enhancing cash flow for suppliers and businesses.
• People BIS 3.0 and EU e-invoicing standards support ensure that cross-border transactions are seamless and regulatory compliant.
• Electronic invoicing reduces the risk of human error, minimizes fraud attempts, and increases the transparency of transactions.
• Substitution of paper bills with electronic bills improves environmental sustainability while maximizing operational efficiency.

How can ClearTax help a business with e-invoicing in Sweden?

ClearTax, the trusted e-invoicing solutions provider, assists Swedish businesses in adhering to Sweden's e-invoicing laws through:

• Seamless ERP & POS Integration: This integration automates the sending and generation of invoices via Peppol BIS 3.0, ensuring compatibility with Swedish public sector requirements.
• Real-Time Compliance Verifications: Validates invoices according to Swedish standards, such as Peppol BIS 3.0 and Svefaktura format.
• Cloud-Based e-Invoicing Portal: Facilitates simple tracking, reconciliation, and management of e-Invoices easy for organizations and suppliers.
• Automated Reporting & Compliance Notifications: This service helps companies avoid penalties by ensuring timely and correct filings as required by Swedish tax laws.

Conclusion

Sweden's e-invoicing law mandates electronic invoicing for all public sector organizations and their vendors, mainly through Peppol BIS 3.0. Although B2B e-invoicing is not mandatory, companies must use the right formats and guidelines for archiving. 

ClearTax streamlines e-invoicing in Sweden through automated ERP integration, real-time compliance checking, and a cloud-based portal for seamless invoice management. Automated reporting and compliance alerts enable companies to stay ahead of regulatory changes while maintaining accuracy and efficiency.