Sweden VAT Information: rates, registration number

Goods

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 2022 is 25%.

VAT Reduced rate

A reduced VAT rate of 12% applies to bicycles, shoes, and other leather goods, clothing, and household linen.

A special reduced rate of 6% applies to certain items. These include for example newspapers and books.

The zero rates applies to (1) certain production services (most often printing services) of periodicals produced by non-profit organizations and (2) prescription drugs 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 thousand euros.

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 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 million	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 million	No later than 26th of the month after the return period

VAT payment date

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

Digital services

VAT Standard rate

The standard VAT rate in Sweden in 2022 is 25%.

Threshold

10,000 euros.

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 dialling code
Internet Protocol (IP) address
The location of the customer’s fixed land line 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. These are goods or services that the client can receive by e-mail, download from the Internet or use 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 company: Company’s name, trading name of the company (If applicable), сontact 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
Electronic declaration that the taxable person is not registered for VAT within the Union
Date of commencement of using the scheme

Taxable person established in Sweden (Union scheme)

Basic information about the company: Company’s name, trading name of the company if different from the company name; сontact information: full postal address, e-mail address and 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.