VAT in Sweden – Basic Information
In Sweden, VAT is known as Mervärdesskatt. The standard VAT rate is 25%, with reduced rates of 12%, 6%, and 0%.
- 12% applies to restaurant services, non-alcoholic beverages, antiques, etc.
- 6% covers books, tickets to sports and cultural events, etc.
- 0% applies to some medicines and passenger transport services.
When is VAT Registration in Sweden Mandatory?
A foreign company must register for VAT in Sweden if it:
- Sells goods or services within Sweden
- Imports or exports goods
- Stores goods in Sweden for distribution within the EU
- Conducts e-commerce exceeding €10,000 in annual turnover
Once the threshold of €10,000 is surpassed, the company must either register for VAT in Sweden or use the One Stop Shop (OSS) scheme. If the turnover remains below this level, VAT can be reported in the country of establishment.
How to Register for VAT in Sweden
To obtain a Swedish VAT number, an application must be submitted to the Swedish Tax Agency along with:
- A copy of a passport (for sole traders)
- A certificate of business registration
VAT Obligations for Foreign Companies in Sweden
Once registered, a company is required to charge VAT at the appropriate rate and submit VAT returns. VAT returns can be submitted on a:
Monthly Basis
Required for companies with annual turnover above SEK 40 million. Submission deadline: the 26th of the month following the reporting period.
Quarterly Basis
For companies with turnover under SEK 40 million. Deadline: the 12th of the second month after the quarter ends.
Annual Basis
For companies with turnover under SEK 1 million. Deadline: the 26th of the second month after the end of the fiscal year.
VAT in Digital Services and E-Commerce
Since 2021, companies selling goods or services within the EU no longer need to register for VAT in every country where they have customers. VAT can be reported in the country of establishment or via the OSS scheme. Online platforms are responsible for reporting transactions.
VAT Refunds for Non-Registered Foreign Companies
Companies not registered for VAT in Sweden may still apply for a VAT refund. The application must be submitted by the end of June of the year following the tax year. The following documents must be included:
- Invoices (paper or electronic)
- A breakdown of goods and services
- A certificate of taxable status
- Other documents supporting the right to a refund
All amounts must be stated in Swedish kronor (SEK).
When Is VAT Refund Not Granted?
VAT refunds are not available in cases involving:
- Purchase of vehicles (cars, motorcycles)
- Private expenses
- Goods or services unrelated to business activities
- Goods resold to private individuals in Sweden
- Certain representation expenses (partial refund possible)
- Short-term vehicle rentals (up to 50% refund)
Summary
Sweden applies clear rules for foreign businesses regarding VAT. Understanding the applicable rates, registration thresholds, and declaration procedures is essential. If you’re operating across borders, consulting a VAT expert can help you avoid errors and make use of refund opportunities.
Need help with VAT registration or reclaiming VAT in Sweden?
Contact Revea – we provide tax consulting, VAT registration, and full accounting support for international companies.
