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Sweden VAT country guide

VAT compliance and reporting rules in Sweden

Below is summary of the major rules provided under Swedish VAT rules (Mervärdesskattelagen 1994, VAT Act), plus adoption of EU VAT Directive provisions . Check our country VAT guides for other jurisdictions.

Our VAT Calculator & VAT Filer products on a single platform, VAT Calc,  are unique in they come with all of this included out-of-the box for Sweden and scores of other countries around the world.

Sweden VAT country guide

Highlights Local term Mervärdesskatt (MOMS)
VAT Rates - standard 25%
VAT Rates - reduced 12%; 6%; 0%
VAT number format SE 123456789012
Registration threshold SEK 80,000 per annum (July 2022); nil for non-residents; SEK 99,680 for pan-EU digital services and goods OSS return. Intra-community acquisitions SEK 90,000.
VAT Group Yes, but limited to financial services and companies in commissionaire structure
VAT recovery foreign businesses Yes
Fiscal Representative Required for non-EU businesses (UK and others excluded)
Currency Krona, SEK
Administration Introduction VAT was introduced into Sweden in 1968. Sweden joined the European Union and its VAT regime in 1995
VAT laws Mervärdesskattelagen 1994, VAT Act; Also EU VAT Directive which takes supremacy as part of EU membership
Tax Authorities Swedish Tax Agency - Skatteverket - part of Ministry of Finance
VAT Rates Standard rate 25%
Reduced rates 12%: hotels and overnight accommodation; labour-intensive supplies; restaurant and catering services; basic foodstuffs and non-alcohol beverages.  6%: newspapers and books; cultural and sporting event entrance; copyright; passenger transport
Zero-rated Pharmaceuticals; central bank gold; sea vessels; aircraft fuel; intra-community supplies; exports; import services in certain cases; VAT warehousing and goods under customs control
Exempt Education; financial services; health, hospital,  and social welfare; postal; letting immovable property; betting and gambling; welfare services; transfer of business; pharmaceuticals; art;
Scope of VAT Scope of VAT Provision of domestic taxable goods and services; EU imports; intra-community acquisitions; Distance selling of goods B2C (OSS or IOSS); receipt of services or goods via the reverse charge
Time of supply Goods & Services (general rule) Goods: earliest of date of delivery; payment; date of invoice. Services: earliest of invoice issued or full/partial payment
Reverse Charge The earliest of delivery/provision or payment dates
Continuous  Services Taxpayers can follow general rules (see separate section). Continuous supplies of services should be reported at least by calendar year end
Imports At time of importation
Goods on approval and return No guidance and should use general rules (see separate section)
Registration VAT registration threshold SEK 30,000 per annum; nil for non-residents; SEK 99,680 for pan-EU digital services and goods OSS return. Intra-community acquisitions SEK 90,000.
Voluntary VAT registration Yes
VAT number format SE 123456789012
VAT Group Only for financial services sectors or companies in commissionaire structure. Voluntary group is possible, but may not use holding companies without taxable supplies. Members should share common economic, financial and control links. Non-residents are excluded. Members are treated as a single taxable person with one VAT number and filing. Intra-group transactions are exempt, and all members are jointly and severally liable for each others' VAT.
Non-residents No material differences except VAT registration threshold and non-EU must appoint a fiscal representative (except Norway, Iceland and the UK)
Fiscal Representative Non-EU businesses must appoint a resident Swedish fiscal representative for a VAT registration. This does not apply for Norwegian, UK or Iceland resident businesses. The fiscal representative is not liable for their client's VAT.
Digital Services Sweden  participates in the EU single  One Stop Shop (OSS) VAT return for digital, telecoms and broadcast services. This was formerly the MOSS regime until 30 June 2021
Pre VAT registration costs Allowable via first VAT return is can demonstrate related to business purposes
VAT Invoices Issuance No specific obligations - should follow accounting rules. Intra-community supplies must be invoiced by the 15th of the month following the supply.
Content Date; unique sequential invoice number; name and address of supplier and customer; Customer VAT number for intra-community supplies or reverse charge; date of supply or advance payment if different from invoice date; Description, quantity or units etc of supply of goods or services; price per unit; taxable amount; VAT charged; rate (broken out if supplies at different rates); total; explanation if zero-rated supply; fiscal representative's details if applicable
E-invoices Sweden considers e-invoicing options
Simplified invoices If invoice does not exceed SEK 4,000 inclusive of VAT. No invoice required for retail transactions.
Self-billing Permitted where agreement and processes between customer and supplier agreed. But record with unique sequential numbering to regular invoice number sequence.
Retention of invoices Seven years. Paper invoices may only be converted into electronic format for storage after three years. Records may be kept outside of Sweden with permission from the Swedish tax office.
FX rules Invoices may be issued in other currencies, but the VAT amount due must be stated in SEK with exchange rate. This should be based on Central Bank or similar official source
Invoice corrections Permitted with a credit or debit note which should include all requirements of original VAT invoice and invoice reference number
Compliance Right to deduct Excluded: entertaining if not also deductible for corporate income tax; passenger vehicles; dwellings
Call-off stock Subsequent to the EU's 2020 Quick Fix harmonisation reforms, stock may be transferred from an EU state to an customer location/warehouse in Sweden without triggering a VAT registration and supply for a non-Italy supplier. Title has not passed until the customer takes the goods for production and sale. At which time a zero-rated transaction may be effected. This must happen within 12 months of the original movement
Reverse Charge - B2B Most supplies made by non-residents to taxable persons in Sweden are subject to the reverse charge. However, if the non-resident is VAT registered in Sweden for other reasons, the reverse charge should still be generally used. But there is an option to take responsibility for VAT. The domestic reverse charge applies on a range of services: construction; gold; scrap metals; trading carbon emission credits
Cash discounts No credit note required if details retained. Adjustment via the VAT returns of supplier and customer
Bad debt relief Processed through a VAT return only when sufficient evidence that the debt is irrecoverable - including bankruptcy or failed recovery proceedings. No requirement for adjustment via invoice
Import VAT deferment VAT on importation may be reported via a Swedish VAT return to avoid a cash payment. Import VAT exemption if intra-community supply permitted.
VAT warehouse Certain goods may be sold within approved warehouse VAT exempt. Bonded customs warehouses also operated for tariff and import VAT suspension.
Supply & install Only if a supply and installation consists of a major element of on-site services may it be treated as potentially a reverse charge if provided by a non-resident. If not, then a Swedish registration is required. If the non-resident is already Swedish VAT registered, then Swedish VAT should be charged by the vendor.
Use and enjoyment services Sweden has opted to consider the provision of certain B2C services by non-EU providers as subject to Swedish VAT and a local VAT registration is required. These services include: IP; professional advice; financial services; hiring of movable property; advertising; and supply of staff
Capital goods adjustment period Movable property: five years. Immovable property: ten years
Non-residents VAT recovery EU non-Swedish businesses may recover any Swedish VAT through an online application to their home tax office (8th Directive reclaim) without supporting invoices. Quarterly claims of >SEK 4,000 or a final annual claim >SEK 500. Any non-EU businesses will have to apply to the Swedish tax office with paper-based claims including supporting invoices. No fiscal representative requirements. Same limits as EU claimant. Sweden does not require reciprocity agreement with country of residence of non-EU businesses
VAT on Digital Services Sweden follows the EU VAT on digital services regime, introduced in 2015. This includes participation in the One-Stop-Shop (OSS) single EU VAT return (formerly MOSS until 30 June 2021)
Live events
Distance selling threshold for goods Nil. Following the EU ecommerce VAT package reforms from 1 July 2021, local Swedish VAT must be charged on all sales by non-Swedish EU e-commerce sellers shipping from within the EU. Imported distance sales not exceeding €150 liable to Swedish sales VAT with  IOSS return option
Cash accounting scheme Yes, for resident taxpayers with an annual turnover not exceeding SEK 3.7million
VAT registered cash tills N/a
Statute of limitations Six years after ending of accounting year of any transactions or returns
Other N/a
VAT Returns Frequency Quarterly, with option to file monthly. Monthly if turnover exceeds SEK 4million per annum. Taxpayers with turnover below SEK 1million may file annually.
Filing method Electronic. Paper-based still possible on request
Deadlines (inc payments) Quarterly returns due by the 12th of the second month after the reporting quarter. Monthly returns due by 26th of the month following the reporting month. Annual VAT returns due by 26th of February of the following year
VAT credits Repaid automatically via VAT return
Corrections Corrective returns
Non-residents No material differences for foreign taxpayers. There is no VAT registration threshold and a fiscal representative must be appointed for non-EU businesses - except from Norway, Iceland and the UK
Other filings Monthly European Sales Listing (ESL) for goods every month by 25th (e-filers) of following month without threshold. Possible to apply for quarterly filing is turnover below SEK 1million per quarter. ESL for services every quarter unless also goods in which case monthly, too.  Intrastat monthly  for supply of goods above threshold: dispatches: SEK4.5m; arrivals: SEK 9m. Deadlines vary - latest 18th of the following month for e-filers
SAF-T N/a
Penalties & interest SEK 625 for missed filings. SEK 1,250 for missed European Sales Listing. 2% fine for not reporting VAT due in correct period. 5% fine incorrectly posted VAT. 20% for misstatement of VAT due. 15% for late VAT payments
B2C Distance Selling returns Sweden participates in the One-Stop-Shop OSS pan-EU VAT return for distance selling, introduced in July 2021.

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