What VAT applies in Sweden?

VAT in Sweden has been in effect since 1960. There are four rates of VAT in Sweden. The standard rate of Swedish Mervärdeskatt is 25% and applies to most goods for which reduced rates do not apply.

VAT in Sweden

VAT in Sweden has been in effect since 1960. There are four rates of VAT in Sweden. The standard rate of Swedish Mervärdeskatt (moms) (VAT) is 25% and applies to most goods for which reduced rates do not apply. The Swedish VAT rate of 12% applies to:

• Certain foodstuffs,
• Non-alcoholic beverages,
• Take-away food,
• Minor repairs to bicycles, shoes and leather goods, clothing and household linen,
• Hotel accommodation,
• Restaurant and catering services,
• Certain works of art, collectibles, and antiques,
• E-books.

Sweden – VAT 6% Applies to:

• Domestic passenger transportation,
• Books (including ebooks),
• Newspapers and certain periodicals,
• Admission to cultural events (excluding cinema); writers and composers,
• Admission to sporting events,
• Use of sports facilities.

The 0% VAT Rate Applies to:

• For prescription drugs,
• Printing services and other services related to the production of magazines for non-profit organizations,
• Intra-community and international passenger transportation.

What is the VAT Identification Number in Sweden?

When you obtain Swedish VAT registration, your 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 prefix SE followed by 12 digits.

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Requirements for a Swedish VAT Invoice

Invoices should contain the following basic information:

• Date of issue of the invoice,
• A unique number,
• Full address of the supplier and customer,
• Suppliers VAT number,
• A full description of the services or goods supplied,
• Details of the number of goods,
• Date of supply (if different from invoice date),
• The taxable net value of the supply,
• The VAT rate applied,
• Amount of VAT in Swedish kronor,
• Details supporting zero VAT,
• The total gross value of the invoice,

When Should I Register for VAT?

The obligation to register for VAT in Sweden is based on the foreign entity’s obligation to settle the Swedish VAT. If a company stores its products and sends them out from Sweden it is obliged to settle the VAT in Sweden. As in other EU countries, if your sales to EU countries within the CTSO exceed EUR 10,000 then you are obliged to settle the VAT in Sweden or within the VAT-OSS system.

How to Register for VAT in Sweden?

Businesses that do not have a permanent establishment in Sweden must fill out a form SKV4632, which can be downloaded from the Swedish tax office’s website. The application should be submitted to the international offices of the Swedish Tax Agency in Malmo or Stockholm before starting a business in Sweden.

Vat Penalties

Failure to settle VAT on time may result in interest or penalties. Late payment may result in interest charges equal to 15% of the tax due. Incorrect or inaccurate returns may result in a penalty of 20% of the incorrectly reported VAT.We encourage you to visit page polishtax.com to learn more useful tax information, not only about Sweden.

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