VAT registration in Sweden

VAT Sweden (Value-added tax) - VAT rates & Swedish VAT legislation act

In Sweden, the VAT matters are regulated by the VAT ACT (2023:200), which was enforced on 1 July 2023 and complies with the EU VAT Directive. Moreover, the standard VAT rate is 25%, and alongside it, there are three other VAT rates. These include two reduced rates, 12% and 6%, as well as a 0% rate.

It’s worth mentioning that the 12% VAT rate in Sweden is applied to services like restaurant offerings and non-alcoholic beverages, as well as collectibles and antiques. Meanwhile, the 6% VAT rate is applicable to items such as books and sporting events, while the 0% VAT rate is reserved for prescription drugs and intra-Community passenger transport.

If you want to explore more which types of goods are subject to each specific VAT rate in Sweden, you can refer to our article titled “What VAT applies in Sweden?“

When is it mandatory to register for VAT in Sweden? - VAT Scope

Due to the fact that Sweden is part of the European Union, the requirement for registering for Swedish VAT aligns with those in other EU member states. These criteria encompass:

• selling in Sweden – supplies of goods and supplies of services,
• importing and exporting goods to and from non-EU countries,
• warehousing goods in Sweden and shipping them to recipients in other EU member states,
• importing goods into Sweden from other EU nations,
• intra-Community distance sales of goods exceeding EUR 10,000 in value.

It’s important to note that the last point, which became effective on July 1, 2021, introduced a unified threshold for all B2C sales to recipients in other EU member states. Once this threshold is exceeded, entrepreneurs are required to register for VAT in Sweden and fulfil their VAT obligations locally or register for VAT OSS to collectively manage their intra-Community sales.

Conversely, for sales valued below EUR 10,000, entrepreneurs have the option to use the applicable VAT rate in the country from which the goods are dispatched and manage their sales accordingly.

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Getting VAT registered in Sweden

Registering for VAT in Sweden involves the traditional method of sending your application via postal mail to the Swedish Tax Agency. However, it’s important to understand that, just like in any other EU country, you must prepare and present the necessary documents to obtain a Swedish VAT number.

To which tax office in Sweden should I apply for VAT registration?

The Swedish Tax Authority responsible for VAT registration is known as Skatteverket. You can get in touch with them at their office located at Utlandsskattekontoret, SE-205 31, Malmö.

Documents required for Swedish VAT registration

In Sweden, for a proper VAT registration process, a business owner must submit a set of required documents to the tax authority. These documents include:

• Registration application.
• Copy of the passport – required for VAT registration of sole proprietorships.
• Copy of the entry in the national business registry.

Swedish VAT number (Sweden VAT ID)

The Swedish VAT registration number comprises a prefix of SE followed by 12 digits.

VAT obligations in Sweden

A foreign entity that has registered for VAT in Sweden must ensure that their trade in goods and the provision of services are subject to the applicable Swedish VAT rates. Additionally, they are required to submit a VAT return in Sweden or via the VAT OSS system. Sweden has three different accounting periods for local VAT returns:

Monthly VAT Returns

Monthly VAT declarations in Sweden are voluntary for businesses with a turnover of less than SEK 1,000,000 or a turnover ranging from SEK 1,000,000 to SEK 40,000,000.

They are mandatory for companies with an annual turnover exceeding SEK 40,000,000.

Monthly VAT returns within Sweden must be submitted by the 26th day of the month following the end of the accounting period.

Quarterly VAT Returns

Companies with a turnover of less than SEK 1,000,000 and those with a turnover between SEK 1,000,000 and SEK 40,000,000 have the option to choose quarterly VAT returns.

The deadline for filing quarterly VAT returns in Sweden is the 12th day of the second month following the end of the reporting period.

Annual VAT returns

Filing annual VAT returns in Sweden, once per year, is exclusively available to companies with an annual turnover lower than SEK 1,000,000.

The deadline for submitting these annual returns is the 26th day of the second month following the end of the VAT accounting period.

VAT registration Sweden - summary

Sweden’s VAT system, although conforming to EU regulations, possesses its distinct and exclusive features, encompassing VAT rates and registration guidelines. These distinctive aspects come into play when foreign entrepreneurs engage in trade with individual Swedish consumers, participate in import/export activities in the country, or warehouse their inventory within Swedish borders.

If you find yourself in any of these situations, we’re here to assist you in managing VAT compliance across EU countries and the UK. Simply reach out to us, and our proficient VAT Compliance specialists will handle all the necessary tasks. You can also schedule a free consultation, detailing the specific areas where you require assistance.