In case of customer loss, the seller may reduce the tax base for outgoing VAT by the amount of the loss, but it is required that the seller can show that payment is unlikely.
During the now ongoing covid-19 pandemic, the Swedish Tax Agency has relied on the evidence so that it is likely that the buyer will not be able to pay his debt if all of the following conditions are met.
- The buyer is a taxable person.
- The invoice will be issued between 1 February 2020 – 31 December 2020.
- It has been at least 3 months since the claim was due for payment.
- A written payment reminder has been issued.
- The seller and the buyer are not in the community of interest.
This means that a customer loss under this new approach – if the conditions exist – can be regarded as already established during the accounting period May 2020. Note, however, that if the seller has received partial compensation, for example through rental subsidies from the state, customer loss applies only to the part that is unpaid.