Sweden

When should i VAT register in Sweden?

Compulsory Registration

The following must register for VAT:

each person established in Sweden who:

• undertakes a taxable activity;
• any person who is not established or domiciled in Sweden, but who carries out transactions subject to VAT in Sweden such as the occasional and temporary provision of services, including services related to buildings located in Sweden and the delivery of goods including their installation or assembly in Sweden, which are subject to tax, whatever the amount of their turnover;
• any non-taxable legal person making intra-Community acquisitions of goods
• any taxable person established in Sweden who only carries out transactions which are not eligible for a deduction and who purchases and receives services from a taxable person established abroad, services for which the buyer is liable for tax;
• Self supply of goods

• use of consignment stock warehouse facilities for selling stored goods to local customers
• Where the VAT reverse charge mechanism does not apply; Restaurant or catering services, short-term vehicle services, business rental services, tickets for cultural, artistic, sporting, educational, scientific or entertainment services or similar

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Voluntary Registration

VAT registration is not normally optional. In certain circumstances, a non-Swedish business owner may voluntarily register for VAT and therefore become liable for VAT on a sale for which a VAT-registered buyer in Sweden would otherwise be liable. This applies mainly to the sale of goods, but can also apply to services related to properties in Sweden.

When should i file VAT returns in Sweden?

Monthly VAT returns in Sweden are due on the 26th day of the month after the end of the return period.

Quarterly VAT returns are due on the 12th day of the second month after the end of the VAT return period.

Annual VAT returns are due on the 26th day of the second month after the end of the yearly return period.

Payment must be made at the same time as filing and this can be done electronically through the Swedish Tax Agency Website.

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Sweden VAT Rates

EU Member States are required to apply a standard VAT rate which is not lower than 15% and must be the same for the supply of goods and services. EU Member States may apply either one or two reduced rates which are not lower than 5% only to supplies of goods or services as listed in the Annex III of the VAT Directive.
See below the Sweden VAT Rates for goods and services at standard and reduced rate.

Standard 25% – All other taxable goods and services

Reduced 12% –Some foodstuffs; non-alcoholic beverages; take away food; minor repair of bicycles, shoes and leather goods, clothing and household linen; hotel accommodation; restaurant and catering services; some works of art, collectors items and antiques

Reduced 6% –Domestic passenger transport; books (including e-books); newspapers and some periodicals; admission to cultural events (excluding cinema); writers and composers; admission to sports events; use of sports facilities

Zero 0% – Medicines supplied on prescription or sold to hospitals; printing and other services related to the production of magazines for non-profit making organisations; intra-community and international passenger transport

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