VAT in Sweden - a complete guide

Are you shipping goods to customers in Sweden? Check if you need to register for Swedish VAT and what the VAT rates are in Sweden. Read on to find out more.

VAT in Sweden - table of contents:

Sweden introduced its value-added tax system in 1969. Locally, it is referred to as Mervärdesskatt (Moms).

When do you need to register for Swedish VAT?

Foreign companies are required to register for Swedish VAT in the following situations:

import/export of goods to Sweden,
intra-Community sale or purchase of goods from another EU country,
trading goods within Sweden,
using consignment warehouses to sell stored goods to local customers,
sale of goods via the Internet to consumers in Sweden – after exceeding the sales threshold of 10,000 euros.

How to register for VAT in Sweden?

To obtain a Swedish VAT number, you must submit an application along with the following documents:

registration application,
copy of the passport – required for VAT registration of sole proprietorships,
copy of the entry in the national business registry,
power of attorney (if using a fiscal agent).

Companies without a registered office in Sweden must fill out form SKV4632, which can be downloaded from the website of the Swedish tax agency at www.skatteverket.se.

The application must be submitted at the international tax offices of the Swedish Tax Agency in Malmö or Stockholm before commencing operations in Sweden.

VAT returns in Sweden

In Sweden, there are three different reporting periods – the general rule is to file returns every quarter.

Depending on the size of the company and the amount of annual turnover, you can opt for monthly, quarterly, or annual returns:

monthly – if the annual turnover exceeds 40,000,000 Swedish kronor,
quarterly – if the annual turnover does not exceed 40,000,000 Swedish kronor,
annual – if the annual turnover is above 1,000,000 Swedish kronor.

Monthly VAT returns in Sweden must be filed (along with tax payment) by the 26th day of the month following the end of the accounting period, and the declaration for December – by December 27th.

Quarterly VAT returns, with some exceptions, must be filed (along with tax payment) by the 12th day of the second month following the end of the accounting period. For example, returns for the 1st quarter (January, February, March) must be submitted by May 12th.

Annual VAT returns must be filed (along with tax payment) by the 26th day of the second month following the end of the accounting period. For example, the annual VAT return for the accounting period January-December 2020 must be submitted by February 26, 2021.

VAT declarations are typically submitted electronically. This can be done through the Swedish Tax Agency. Payments can also be processed simultaneously.

If a company can’t submit the declaration electronically, it can be done in person using form SKV 4700.

What information should be included in a Swedish invoice?

The invoice must include the following information:

date of issue,
unique serial number,
names and addresses of the seller and the buyer,
quantity and type of goods or scope and type of services,
date of sale,
payment date – if it can be determined and if it differs from the invoice date,
taxable base for each VAT rate or exemption,
net price,
price reductions or discounts that are not part of the unit price,
VAT rate,
VAT amount.

In some cases, a simplified invoice can be issued. This option is available if the value of the sale is less than 4,000 Swedish kronor including VAT. Additionally, a simplified invoice can be used when commercial practices in a specific sector, administrative procedures, or technical constraints make issuing a full invoice challenging.

A simplified invoice should include:

date of issue (invoice date),
seller’s identification details,
description of the type of goods delivered or services provided,
VAT rate,
VAT amount.

Swedish invoices must be kept for seven years. A simplified invoice can’t be used in the case of cross-border trade with other EU countries.

Swedish electronic invoices

Electronic invoices can be issued if the buyer agrees to it. There are no other special requirements to use this form of invoicing.

Fakturę elektroniczną obowiązują te same wymogi, co fakturę papierową.

The same requirements apply to electronic invoices as to paper invoices. When sending multiple electronic invoices to the same customer simultaneously, information relevant to all invoices can be provided just once. Additionally, it’s possible to supplement an incomplete paper invoice with electronic information to make it complete, as long as the relationship between them is clearly stated.

IMPORTANT!

Entrepreneurs selling online to Swedish consumers can simplify their tax process by registering for VAT OSS after reaching 10,000 euros in turnover. This allows them to file one VAT return for all EU states and pay taxes based on the buyer’s country’s rates. If not registered, they follow Swedish tax rules solely for distance sales.

Rates of VAT in Sweden

Szwedzkie stawki VAT kształtują się następująco:

RATE	TYPE	TYPE OF GOODS OR SERVICES
25%	standard	all other taxable goods and services,
12%	reduced	some foods, non-alcoholic beverages, takeaway food, minor repairs of bicycles, footwear, leather goods, clothing, and household textile articles, accommodation in hotels, restaurant and catering services, some works of art, collectibles, and antiques,
6%	reduced	domestic passenger transportation, books (including e-books), newspapers and some magazines, admission to cultural events (excluding cinema), writers and composers, admission to sports events, using sports facilities,
0%	zero	prescription drugs dispensed or sold to hospitals, printing and other services related to the production of magazines for non-profit organizations, intra-Community and international passenger transportation.

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Author: Lucy Adams
She has extensive knowledge in the field of accounting and constantly gains experience working for both small businesses and larger corporations. Her mission is to explain complex financial and accounting issues and teach business owners and those interested in the subject how to manage their finances effectively. She enjoys giving practical advice, discussing current accounting issues, and analyzing legislative changes that may affect business operations. She enjoys a straightforward approach to finance that helps entrepreneurs focus on growing their businesses. She translates complex issues into easy-to-understand language so that anyone can confidently make decisions that impact the success of their business.
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