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VAT and VAT-OSS in EU Guide
In Sweden, VAT has been in force since 1960. There are four VAT rates in Sweden. The basic rate of Swedish Mervärdeskatt (moms) (VAT) is 25% and applies to most goods for which no reduced rates apply.
Value-added tax (PTU) is a value-added tax, in other words, an increase in the value of goods as a result of a production or service creation process. VAT is an indirect tax, collected at each successive stage of trade in goods or services. VAT applies to both sellers and buyers of goods and services, as its value is added to the net value of the transaction.
VAT in Sweden
VAT in Sweden has been in force since 1960. There are four VAT rates in Sweden. The basic rate of Swedish Mervärdeskatt (moms) (VAT) is 25% and applies to most goods for which no reduced rates apply.
The Swedish VAT rate of 12% applies
- Some groceries
- Non-alcoholic beverages
- Eating to go
- Minor repairs on bicycles, shoes and leather goods, clothing and household linen
- Accommodation in a hotel
- Restaurant and catering services
- Some works of art, collector’s items and antiques
Sweden – VAT 6% applies
- Domestic passenger transport
- Books (including ebooks)
- Newspapers and some magazines
- Admission to cultural events (excluding cinemas); writers and composers
- Admission to sports events
- Use of sports facilities
0% VAT rate in Sweden applies
- For prescription drugs,
- Printing and other magazine production services for non-profit organizations
- Intra-Community and international passenger transport
VAT identification number in Sweden
After obtaining Swedish VAT registration, the company is assigned a unique Swedish VAT number. All EU member states have a fixed format for VAT numbers. In Sweden, the format consists of the SE prefix followed by 12 digits, e.g. SE123456789123
Swedish VAT invoice requirements
Invoices should contain the following basic information:
- Date of issue of the invoice
- Unique number
- Full supplier and customer addresses
- Supplier’s VAT number
- Full description of services or goods supplied
- Details of the quantity of goods
- Date of delivery (if different from the invoice date)
- The net value of the supply subject to taxation
- Applied VAT rate
- VAT amount in Swedish kroner
- Details supporting zero VAT
- Total gross invoice value
When should I register for VAT?
The obligation to register VAT in Sweden results from the obligation to settle Swedish VAT by a foreign entity. Settlement of VAT in Sweden by foreign entities is related to the amount of annual distance selling to Sweden. The VAT registration threshold is SEK 320,000 (approximately EUR 34,000) per year. If it exceeds SEK 320,000, the trader is obliged to settle VAT in Sweden. The thresholds for VAT reporting periods in Sweden are as follows:
- Monthly VAT returns – annual turnover over SEK 40 million
- Quarterly VAT returns – annual turnover from SEK 1 million to SEK 40 million
- Annual VAT returns – annual turnover below SEK 1 million (if required to submit VAT returns)
Monthly Swedish VAT returns are payable on the 26th day of the month after the end of the accounting period. The December return falls on the 27th of the month. Quarterly VAT returns are payable on the 12th day of the second month after the end of the VAT settlement period. If the refund is to take place in January or August, it must be submitted by the 17th day of the second month after the end of the refund period. Annual VAT returns are payable on the 26th day of the second month after the end of the VAT settlement period or on the 27th day of the second month if the refund falls in December. In Sweden, the frequency with which recapitulative statements must be submitted will depend on the type of supply. A monthly return is required for supplies of goods if the value of the supply exceeds SEK 500,000 in the current or any of the previous four quarters. Quarterly declarations may be made if the value of the goods delivered is below this level. In the case of service provision, quarterly declarations are the rule. In the case of mixed delivery of goods and provision of services, the rules concerning the frequency of reporting of goods apply. The summary information can be submitted in paper form using SKV 5740 or online. The deadline for submitting papers is 20 days after the end of the reporting period. In the case of online submissions, it is 25 days after the end of the relevant reporting period.
- In addition, the entrepreneur should register for VAT in Sweden if their company:
- Delivers goods from Sweden
- Imports goods with customs clearance in Sweden
- Deals with passenger transport through the territory of Sweden
- Provides real estate services in Sweden, including construction services
Penalties and VAT interest in Sweden
Failure to settle the VAT on time may result in interest or penalties. Interest amounting to 15% of the required tax may be charged for late payment. Incorrect or inaccurate returns may result in a penalty of 20% of the incorrectly reported VAT.
Distance selling threshold
The distance selling threshold for taxpayers in Sweden is SEK 320,000 (approximately EUR 34,000) per year.
INTRASTAT in Sweden
In addition to the VAT return, foreign companies operating in Sweden may be required to report on Intrastat statistics. This includes information on the import or export of goods between countries belonging to the European Community as well as the movement of own goods to a warehouse located in another Member State. The threshold for imports is SEK 9000 000. The threshold for export is SEK 4500 000. The monthly Intrastat report should be submitted by the 10th of the following month.
The tax office in Sweden
Skatteverkets inläsningscentral FE 4600 105 81 STOCKHOLM. Want to register for VAT in Sweden? >> Contact us