Sweden VAT Information
If you are a foreign/cross-border business selling or planning to sell goods or services in Sweden, you may be required to register for VAT with the Swedish Tax Agency (Skatteverket), charge and report VAT in Sweden.
You can always review the latest Swedish VAT regulations on the Skatteverket government website.
Sweden VAT Information
VAT has been around in Sweden since 1969, locally known as Mervärdesskatt or Moms. The act is documented in the Swedish VAT act 1994, which outsets the fundamental rules for value-added tax and is backed by statutory amendments from the council for advanced tax rulings. Swedish VAT is supervised by the National Tax Board, which also produces guidance briefings, notices and memoranda.
As an EU Member State, Sweden is obligated to also incorporate EU VAT rules, outlined in the EU VAT Directive.
Which includes details for Swedish VAT registrations, VAT compliance, VAT Returns and more.
Swedish VAT standard rate is charged at %25, but, can be charged at %12 and %6, depending on the type of goods and services. The 3 VAT rates are as follows:
25% VAT is the general tax rate, which applies to most goods and services.
12 per cent VAT is charged on foodstuffs, hotels, and artists' own sales of works of art.
6 per cent VAT rate applies to newspapers, magazines, books, passenger transport (taxis, buses, flights and trains) in Sweden and concerts.
When Should You Register?
If you are an overseas/cross-border company planning to sell goods in Sweden, you may be liable for VAT or have the rights to a tax refund. You should therefore register for VAT with the Swedish Tax Agency (Skatteverket) no later than two weeks before the business is started.
Most common scenarios where you may be liable for VAT include:
Importing goods into Sweden
Intracommunity sales or purchases of goods from another EU country
Buying or selling goods in Sweden
Distance selling goods to customers in Sweden, through platforms such as Amazon or ebay. (subject to EU distance selling threshold of SEK 320,000)
VAT relief for small business
The threshold for VAT registration for a small business established in Sweden is SEK 30 000.
If the turnover for a fiscal year (12 months) is less than SEK 30 000, you are not obliged to register for VAT.
NOTE: This does not apply to foreign companies without a fixed establishment in Sweden.
VAT Registration Associated Fees and Timelines
All fee includes: VAT registration, documents translation, certification, fiscal representation and handling notification services.
The registration time scale is estimated and calculated from the time when all required documents have been received and relies on the current workload of the local tax authorities.
Price are in EUR. Prices exclude EORI application, EC Sales list and intrastat filing.
Frequently Asked Questions
How often does Swedish VAT need to be declared?
In Sweden the VAT return can be filed yearly, quarterly or monthly, all depending on the entities annual turnover. For example:
Annual turnover of more than SEK 40 million - VAT returns must be filed monthly
Annual turnover is between SEK 1 million and SEK 40 million - VAT returns must be filed quarterly
Annual turnover of less than SEK 1 million – VAT returns must be filed yearly
Will the Swedish Tax Authority fine me for late filing or payment of VAT?
Yes, late declaration fines are between SEK 500 and SEK 1000. There is no penalty for late VAT payments, but interest on VAT should be paid prior to the date of payment (currently charged at the National Bank of Sweden base rate plus 15% per annum). Incorrect payment or incorrect returns may result in a penalty of 20% of the VAT amount reported incorrectly.