Sweden VAT Information: rates, registration number

This guide is for e-commerce companies that sell online via web stores or at marketplaces.

VAT Standard rate

The standard VAT rate in Sweden in 2023 is 25%.

VAT Reduced rate

A reduced VAT rate of 12% applies to hotels, campgrounds, certain works of art, food, and restaurant services.

A special reduced rate of 6% applies to certain items. These include for example newspapers and books. Also, 6% applies to repairs to bicycles, shoes, and other leather goods, clothing, and household linen.

The zero rates apply to:

Сertain production services (most often printing services) of periodicals produced by non-profit organizations;
Prescription drugs are sold to hospitals or imported into the country for delivery.

Threshold

Since July, new rules have been in effect in Sweden, defining a threshold of €10,000.

Deductible VAT

You can deduct VAT payable or pay on the following transactions:

Domestic supplies of goods or services and transactions treated as such;
Intra-EU acquisitions of goods and transactions are treated as such;
Importation of goods.

Registration procedure

In Sweden, there is online registration. It is necessary to fill out a questionnaire and send documents confirming the activity in Sweden. The application review period is usually 3 months.

Tax representative

For companies based outside the EU, the appointment of a tax representative is required.

VAT returns filing date

The following table will help you with the definition of filing declarations:

Filing period	Annual turnover
Quarterly	Annual turnover does not exceed SEK 40,000,000	Between the 1st of the month after the return period and the 12th of the second month following the tax period.
Monthly	Annual turnover does exceed SEK 40,000,000	No later than of 26th of the month after the return period.

The following table will help you with the definition of filing declarations:

VAT payment date

VAT must be paid simultaneously with the filing of the declaration.

VAT Standard rate

The standard VAT rate in Sweden in 2023 is 25%.

Threshold

New rules have been in effect in Sweden, defining a threshold of €10,000.

Pieces of evidence

It is very important to correctly determine the location of the Customer. If two of the items below are for Sweden, then the shipments are for Sweden:

Customer’s permanent address;
billing address, including the country;
telephone number, including the country dialing code;
Internet Protocol (IP) address;
The location of the customer’s fixed landline through which the service is supplied to him;
Other commercially relevant information.

E-services list

The legislation of the European Union means by the term digital product any product that is stored, delivered, and used in electronic format. The client can receive these goods or services by e-mail, download them from the Internet or use them directly on the website. These products include:

Electronic books, images, movies, and videos, whether buying a copy from Shopify or using a service (for example Amazon Prime). Such products are increasingly referred to as “Audio, visual or audiovisual products”;
Downloadable and streaming music, whether buying an MP3 or using music services;
Cloud-based software and as-a-Service products (SaaS, PaaS, IaaS);
Websites, site hosting services, and Internet service providers;
Online ads and affiliate marketing.

Registration procedure

Taxable persons registered shall register via the Tax portal (“Skatteverket”) using an online form. Information required for registration:

Taxable persons based outside the European Union (non-Union scheme):

Basic information about the company: Company’s name, a trading name of the company (If applicable), contact information: full postal address, email address and website of the taxable person, name and phone number of the contact person;
National tax number (If applicable);
Country in which the taxable person has his place of business;
International bank account number (IBAN) or OBAN number and BIC;
An electronic declaration that the taxable person is not registered for VAT within the Union;
Date of commencement of using the scheme.

A taxable person established in Sweden (Union scheme)

Basic information about the company:

Company’s name;
The trading name of the company is different from the company name.

Contact information:

Full postal address;
The e-mail address;
Website of the taxable person;
Name and phone number of the contact person;
Tax identification number in Sweden;
Full postal address of fixed establishment(s) situated in other Member States of the European Community;
Value-added tax identification number issued to the taxable person by any Member State of the European Community where the taxable person is not established;
Value-added tax identification number issued by any Member State of the European Community where the taxable person’s fixed establishment is located, or tax reference number in the absence thereof;
Country where the taxable person is established if established outside the territory of the European Community;
Date of commencement of using the scheme;
International bank account number and BIC.

Keeping records

10 years.

Filling VAT returns

EU VAT returns are due quarterly. Deadline: 20 days after the end of the quarter.

Q1: 20 April;
Q2: 20 July;
Q3: 20 October;
Q4:20 January.

VAT payment date

Best way to make payment along with filing the declaration before the deadline.