Kædesvig, or VAT chain fraud, has become one of the Danish Tax Agency’s (Skattestyrelsen) top priorities in recent years. The phenomenon is not new, but the scale of fraudulent activity uncovered and the severity of new sanctions introduced in 2024 make it more relevant than ever for businesses to understand the risks.
In this article, we take a closer look at what kædesvig is, the latest findings from Skattestyrelsen, the strengthened sanctions, and what practical steps you can take to safeguard your business.
What exactly is kædesvig?
Kædesvig is a form of VAT fraud where companies use complex supplier chains to disguise who actually performed the work or delivered the goods. It often involves:
- Straw companies set up for short periods to issue or receive invoices.
- Fictitious invoices created to claim input VAT or reduce declared profits.
- Circular transactions where the same goods or services are invoiced multiple times through a chain of companies.
The goal is to create confusion about responsibility – making it unclear who owes VAT and taxes, while the companies involved profit illegally.
This type of fraud does not only harm the tax base; it also distorts fair competition. Law-abiding companies are undercut by those avoiding VAT, creating an uneven playing field in sectors like construction, transport, cleaning, and subcontracting.
The numbers: a five-year crackdown
Skattestyrelsen’s latest report (September 2025) provides clear evidence of the scale of the problem:
- From 2020 to 2024, nearly 12,000 inspections were carried out.
- Errors or fraud were found in 9 out of 10 inspections.
- The average error rate was an astonishing 90% across the five-year period.
- DKK 4.2 billion in corrections were issued during this time.
- In 2024 alone, around 2,400 inspections led to corrections of DKK 780 million.
These figures underline that kædesvig is not a marginal issue – it is widespread and persistent, prompting a strong response from the authorities.
Stronger sanctions from 2024
Until recently, many cases of kædesvig ended in administrative fines or lengthy legal disputes. But with broad parliamentary agreement in 2023, Skattestyrelsen gained new tools in 2024 to act faster and more effectively.
The new sanctions include:
- Deregistration of companies involved in issuing or using fictitious invoices. This means loss of VAT, A-tax, and AM-bidrag registrations – effectively shutting down operations.
- Personal liability for management: directors and managers can be held personally responsible for unpaid VAT and taxes if their company is found to have used fraudulent invoices.
- Seizure of assets (tax arrest): Skattestyrelsen can, in certain cases, freeze funds directly from company bank accounts to secure payment.
These measures are designed to make fraud less attractive by targeting not only the companies but also their leadership and finances directly.
Why this matters for compliant businesses
You may think kædesvig only concerns dishonest operators. But in reality, any business working with subcontractors or external suppliers is exposed to risk.
If your supplier issues fake invoices – even if you were unaware – the consequences can include:
- Rejection of VAT deductions.
- Liability for unpaid taxes.
- Administrative penalties.
- Damage to reputation and relationships with customers or auditors.
In other words, ignorance is no defence. Businesses are expected to perform reasonable due diligence on their partners.
Sectors at particular risk
Experience shows that kædesvig is most prevalent in industries where:
- There is heavy use of subcontractors.
- Work is often paid per project or hourly without detailed contracts.
- Documentation of actual deliveries can be weak.
This includes:
- Construction and building trades (multiple subcontractors, complex chains).
- Transport and logistics (fuel, subcontracted drivers).
- Cleaning and facility services (large networks of small providers).
If your company operates in or around these sectors, extra vigilance is necessary.
Practical due diligence steps: protecting your business
To reduce the risk of being caught up in kædesvig, companies should implement structured supplier checks. Here’s a due diligence checklist you can use:
- Contracts and documentation
- Ensure every engagement is backed by a signed contract.
- Specify the scope of work, pricing, and delivery terms clearly.
- Verify actual deliveries
- Check whether the goods or services invoiced were actually delivered.
- Keep delivery notes, work logs, or photos where relevant.
- Cross-check invoices
- Be cautious of invoices with vague descriptions or unusual formatting.
- Compare invoice amounts with market norms – suspiciously low prices can be a red flag.
- Know your supplier
- Research the company’s background.
- Look for unusual company structures, frequent name changes, or missing contact details.
- Financial signals
- Pay attention to suppliers insisting on cash payments or rapid transfers.
- Ask whether they are properly registered for VAT and taxes.
- Keep records
- Store all documentation together – contracts, invoices, payment confirmations, correspondence.
- This evidence can protect you in case of an inspection.
The role of accountants and advisors
Navigating these requirements can be challenging, especially for small businesses with limited resources. This is where your accountant can play a vital role:
- Reviewing suppliers during bookkeeping.
- Spotting unusual invoice patterns that might indicate risk.
- Advising on documentation requirements to ensure VAT deductions are safe.
- Coordinating with auditors if a case is flagged during annual reporting.
Working with a professional partner not only reduces the risk of sanctions but also gives you peace of mind that your compliance processes are robust.
Final thoughts
The fight against kædesvig is here to stay. With new tools in place, Skattestyrelsen is expected to continue its high-intensity inspections – and businesses cannot afford to be complacent.
By implementing a structured due diligence process, maintaining proper documentation, and seeking professional advice, you can reduce the risk of being caught up in fraudulent supplier chains.
How we can help you
At Andreas Regnskab, we combine bookkeeping expertise with a proactive compliance focus. We help our clients:
- Identify and prevent risky transactions.
- Maintain accurate and defensible documentation.
- Stay fully compliant with VAT and tax requirements.
👉 Explore our services on our website, or contact us directly to discuss how we can protect your business.