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A review of Sweden’s over-taxation: Majority want to scrap the VAT tax rule

Sunday, 29 January 2012
The four Swedish opposition parties want to tear up the ruling Alliance coalition’s tax reform from 2009 which requires that that a single client will satisfy VAT tax, according to radio Sweden.
The political parties want to return t the old method which will allow doable clients to satisfy the VAT transaction before it is commissioned and the Green Party wants to change to move forward with a decision as early as in the spring.
 
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Radio Sweden carried out an investigative journalistic work reported on their program, Caliber which shows that employers are circumventing the Employment Protection Act (Las) by allowing people to work as self-employed with the “F-tax” rule instead of employing them. This will mean that if they pay F-Skatt or VAT, which will be reclaimed from the government as such “paying the system”. Had they been employed, the treasure would have received that as tax.

In 2009 the Swedish parliament resolved that it was satisfied by a single client getting the F-tax. According to program, Caliber, all opposition parties are now against the decision, and although there is no motion to amend it, there is a willingness among the opposition to restore the old rules in the spring.

Caliber’s report showed that employers - including the Swedish Radio itself – have increasingly tried to hire people who are self-employment with F-tax instead of employing them fully.

Minister for Employment Hillevi Engstrom sees some problems with that employer may bypasses “LAS”, but do not believe that the government's f-tax rules need change to affect it.

“The basis is that we want to get more business and more self employed people as well as for companies to employ people if they want. It is not, in my opinion that there comes the conversion of persons who employed to self-employed without further notice. Each such case is admissible in court,” said Labour Minister, Hillevi Engstrom to radio Sweden.

By Scancomark.se Team


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