B. Scope of the tax
VAT applies to the following transactions:
• The supply of goods or services made in Sweden by a taxable person
• The intra-Community acquisition of goods in Sweden for goods coming from another European Union (EU) Member State by a taxable person (see the EU chapter)
• Reverse-charge services received by a taxable person in Sweden
• The importation of goods from outside the EU, regardless of the status of the importer
Quick Fixes. Pending introduction of a “definitive” system for the VAT treatment of intra-Community supplies of goods to taxable persons, the EU has adopted Quick Fixes for intra-Community trade of goods. For an overview of Quick Fixes rules, see the EU chapter. For documentary requirements, see Section H. Invoicing, subsection Proof of exports and intra-Community supplies.
Sweden has implemented the Quick Fixes as per 1 January 2020 through regulation according to the Swedish VAT Act. The Quick Fixes concern the following three items:
• Call-off stock simplification
• Uniform rules to simplify chain transactions
• Simplified proof of intra-Community supply of goods
• Conditions for zero-rating of intra-Community supply of goods
Call-off stock simplification. Under the call-off stock simplification, a supplier’s transportation of goods from a stock in another EU Member State to its customer’s call-off stock, Sweden would not trigger a VAT registration obligation in Sweden, provided certain conditions are met. Instead, the supplier would be deemed to make an intra-Community supply of goods in the EU Member State of dispatch, and the customer would be deemed to make an intra-Community acquisition of goods in Sweden.
The scope of simplification applies to a call-off stock arrangement where:
• Goods are moved from another Member State to another taxable person in Sweden under a calloff agreement
• The supplier is not established in Sweden
• The customer is VAT-registered in Sweden
• The supplier knows the customer’s identity and VAT registration number at the time of the transfer
• The supplier maintains a call-off stock register and records the transaction in its EC Sales List
• The supply of goods take place within 12 months of arrival
Chain transactions. In the case of several consecutive sales of the same product, where the product is transported from one EU Member State to another EU Member State directly from the first supplier to the last purchaser in the chain, the transport shall be attributed to the supply made to that supplier, other than the first, who transports or has transported the goods (the intermediary).
The transport shall, however, be attributed to the supply made by the intermediary if it has communicated to its supplier its VAT registration number in the EU Member State from which the goods were transported.
Conditions for zero-rating of intra-Community supply of goods. The VAT exemption can be granted to a supplier if the following material conditions are met:
• The goods must be transported from one EU Member State to the customer in another EU Member State by the supplier, the customer or on behalf of either one
• The supplier has received a valid VAT number of the customer in the other EU Member State
• The Intra-Community supply of goods has been reported in the supplier’s EC Sales List with reference to the customer’s VAT number
Effective use and enjoyment. To avoid instances of non-taxation or double taxation, EU Member States can apply use and enjoyment rules that allow a service that is “used and enjoyed” in the EU to be taxed or prevent a service that is “used and enjoyed” outside the EU from being taxed. If a service is taxed in the EU under the use and enjoyment provisions, a non-EU supplier of the service may be required to register for VAT in every Member State where it has customers that are not taxable persons. For information regarding the rules relating to VAT registration, see the chapters on the respective EU countries.
In Sweden, the following services are subject to the “use and enjoyment” provisions when provided business-to-consumer (B2C):
• Transfers and assignments of copyrights, patents, licenses, trademarks and similar rights
• Legal services, engineering services, auditing services, data processing and provision of information and similar services
• Bank and finance services (not including the letting of safe deposit boxes)
• Insurance and reinsurance services
• Letting of staff
• The grant of access to, and transmission or distribution through a natural gas system within the community or a gas network connected to such a system, a system for electricity or a system for heating and cooling, as well as services directly connected thereto
• Marketing and adverting services
In Sweden the following supplies are also subject to the “use and enjoyment” provisions in Sweden when supplied B2C:
• Admission to activities in Sweden of the following: cultural, artistic, sports, science, entertainment or certain trade shows or exhibitions (the same applies for the B2B supply of events in Sweden of the same nature)
• Goods transportation services performed only in Sweden
• Telecommunication services, broadcasting services and electronic services
In Sweden the following supplies are subject to the use and enjoyment provisions in Sweden, irrespective of whether the supply is made B2C or B2B:
• Real estate connected services when the real estate is located in Sweden
• Passenger transportation services only provided in Sweden
• Restaurant and catering services provided in Sweden
• Short-term leasing of vehicles when the goods are provided in Sweden
Transfer of a going concern. A merger or transfer of assets between two taxable persons can, under certain circumstances, be deemed as a transfer of a going concern (TOGC), which is considered a supply outside the scope of VAT and therefore not subject to VAT.
A TOGC is outside the scope of VAT if the following requirements are met:
• The assets must be a part of a transfer of a business as a going concern
• The assets must be used by the acquirer with the intention to carry on the same business as the transferor
• If only a part of the business is transferred, the transferred part must be capable of operating separately
• If the transfer would be subject to VAT, the acquirer would be entitled to recover the VAT charged
• If the transferor is a taxable person the acquirer must be a taxable person or become a taxable person as a result of the transfer
Transactions between related parties. For a transaction between related parties, the value for VAT purposes is calculated as: supplies between related parties, where the supplier or the recipient has a limited right to deduct VAT, must be made at the market value. Otherwise, a reassessment of the value up to the market value may be done by the Swedish tax agency.
• Trading with emission licenses
• Gold and other specific metals
• Scrap metal
• Mobile phones, laptops, tablets, game consoles and integrated circuit units (when the tax base in the invoice exceeds SEK100,000) and the seller and purchaser are or shall be registered for VAT in Sweden
Digital economy. Specific VAT rules apply to cross-border supplies of goods and services sold via the internet (e-commerce) in all EU Member States with effect from 1 July 2021. These new rules apply to all direct sales to nontaxable persons (in practice these are mostly private individuals), but we refer to these rules as e-commerce VAT rules because most of these transactions are conducted via the internet. In general, the place of supply is in the country of consumption, i.e., where the goods are shipped to or where the buyer of the goods or services resides, subject to any “use and enjoyment” provisions that may override this rule (see Section B, Effective use and enjoyment subsection above). Therefore:
• For supplies of services made by a nonresident supplier to a business customer (B2B), the business customer is responsible for accounting for the VAT due, using the reverse charge.
• For supplies of goods made by a nonresident supplier to a business customer (B2B), where the goods are transported from another EU Member State, the business purchasing the goods is responsible for accounting for the VAT due, as an intra-Community acquisition. If the goods come from outside the EU, the purchaser may have to report an importation of goods.
• For supplies of goods or services made by a nonresident supplier to a final consumer (B2C), the supplier is generally responsible for charging and accounting for the VAT due at the rate applicable in the customer’s country (unless the supplier’s sales fall beneath the distance selling threshold of EUR10,000 (approx. SEK99,680) effective 1 July 2021). This VAT can be reported using a single VAT registration, using a “One-Stop-Shop” mechanism.
For more details about intra-EU distance sales, see the EU chapter.
The sale or transfer of digital currencies is exempt from VAT, provided that the digital currency in question can be equated with legal tender. Digital currencies that are not equated with legal tender are usually considered vouchers but could in certain cases also be considered other type of assets. Hence, the VAT treatment of digital currencies should be reviewed on a case-by-case basis.
Effective 1 July 2021, an e-commerce supplier may have a choice of how to account for VAT on its B2C supplies.
Local VAT registration. A nonresident supplier may choose to register for VAT in each Member State and account for VAT on all supplies made and recover input tax in accordance with local rules (see the Non-established businesses subsection above). Non-EU businesses may be required to appoint a fiscal representative for accounting for the VAT due on these transactions.
In Sweden, the application for a local VAT-registration is made to the Swedish tax agency. The application process normally takes four to eight weeks from the filing of the form.
One-Stop Shop. Effective 1 July 2021, a supplier can choose to account for VAT due under the EU One-Stop Shop (OSS), which can be used for intra-EU cross-border supplies of goods and all cross-border supplies of services made to final consumers in the EU. Unlike the previous Mini One-Stop-Shop (MOSS) scheme that applied until 30 June 2021, the OSS is not limited to crossborder supplies of electronic services, telecommunication services and broadcasting services.
The OSS is an electronic portal that allows businesses to:
• Register for VAT electronically in a single Member State for all intra-EU distance sales of goods and for B2C supplies of services
• Declare and pay VAT due on all supplies of goods and services in a single electronic quarterly return
The OSS can be used by businesses established in the EU and outside the EU. If a supplier or a deemed supplier decides to register for the OSS, it must declare and pay VAT for all supplies (goods as well as services) that fall under the OSS.
In Sweden there are no additional specific local rules that apply.
For more details about the operation of the OSS, see the EU chapter.
Import One-Stop Shop. Effective 1 July 2021, the Import One-Stop-Shop (IOSS) scheme applies for B2C distance sales of goods from outside the EU.
Effective 1 July 2021, VAT is due on all commercial goods imported into the EU regardless of their value. The actual supply is subject to VAT in the country where the goods are imported (the country of destination). The IOSS facilitates the declaration and payment of VAT due on the sale of low-value goods (i.e., consignments valued at less than EUR150 per consignment). It allows suppliers selling low-value goods dispatched or transported from a non-EU country to customers in the EU to collect, declare and pay the VAT due. If the IOSS is used, the importation into the EU is exempt from VAT.
In Sweden there are no additional specific local rules that apply.
For more details about the IOSS, see the EU chapter.
Use of the IOSS special scheme is not mandatory. If VAT is not collected via the IOSS scheme, the importation of goods into the EU is subject to import VAT in the country of final destination and the Member State can decide who is liable to pay the import VAT, which could be the customer or the seller (or an electronic interface).
Postal Services and Couriers Scheme. If the IOSS is not used and the customer is liable for the import VAT due on the supply (and importation) of consignments with a small intrinsic value (i.e., less than EUR150), the VAT can be collected using the special scheme for postal services and couriers.
In Sweden there are no additional specific local rules that apply.
For more details about the special scheme for postal services and couriers, see the EU chapter.
Online marketplaces and platforms. Under the new EU VAT e-commerce rules, effective 1 July 2021, taxable persons that “facilitate” certain B2C sales of goods are deemed to have purchased and then supplied those goods themselves. This means that the single supply from the “underlying” supplier to the final consumer is split into two deemed supplies:
• A supply from the supplier to the facilitator (deemed B2B supply)
• A supply from the facilitator to the final customer (deemed B2C supply). Any intermediation service provided by the facilitator is disregarded for VAT purposes
This provision does not cover all sales facilitated via the facilitator. It only covers distance sales of goods imported from non-EU jurisdictions in consignments with an intrinsic value not exceeding EUR150. The jurisdiction of residence of the supplier using the facilitator is irrelevant. The supply to the facilitating platform is VAT exempt and the supplies made by that platform follow the e-commerce VAT rules as described above. In addition, the provision also covers sales within the EU, if the supplier is not established within the EU. This applies to both local shipments within one Member State, as well as intra-Community shipments. In both cases, the final customer must be a nontaxable person.
In Sweden there are no additional specific local rules that apply.
For more details about the rules for online marketplaces, see the EU chapter.
Vouchers. Sweden implemented the EU Directive on VAT treatment of vouchers into the Swedish VAT Act as of 1 January 2019. The Swedish VAT Act has specific rules that define a voucher, a single purpose voucher (SPV), a multipurpose voucher (MPV) and when a taxable event takes place and at what value. A voucher may be described as an instrument that businesses are obliged to accept as full or part payment for goods or services. Vouchers may be physical or electronic.
An SPV is an instrument where it is already at the time for issuance possible to establish all facts that are needed to decide in what country VAT shall be paid and with what amount, i.e., which taxable country, what kind of taxable supply, at what tax rate and at what amount VAT should be calculated on. All vouchers that are not SPVs are deemed as MPVs.
VAT is due when an SPV is sold if the voucher refers to a taxable transaction within Sweden. A MPV, on the other hand, is not subject to VAT when sold at a time before it is used as means as payment for goods or services. The VAT is instead due at the time when the MPV is redeemed against goods and services.
Registration procedures. The most effective way to register is online at https://www.verksamt.se/ en/web/international/home. A Swedish electronic identification is required to use the online service. Otherwise, fill out the application form SKV 4620 on paper and send it to the Swedish tax agency. Non-established taxable persons use form SKV 4632, application for foreign entrepreneurs. Foreign entrepreneurs need to append a registration certificate not older than six months to the application form.
The Swedish tax agency’s website provides a how-to guide, application forms to fill out and other necessary information. The site is also available in English. See www.skatteverket.se. The how-to guide is under the “Employers, Businesses and Corporations” heading and more information is available under the “Tax Information” and “VAT Information” headings.
Normally, it takes four to eight weeks to register for VAT, but it can take longer, especially during summer, and if the Swedish tax agency has questions about the registration.
Deregistration. The most effective way to deregister from VAT in Sweden is to do it online at www.verksamt.se. A Swedish electronic identification is needed to gain access. If the taxable person does not have an electronic identification, it can use form SKV 4639 and send it to the address printed on the form or to send a letter to the Swedish tax authorities requesting a deregistration and explain the reason for deregistering. Non-established businesses must often use hard copies, since a Swedish personal identification number is needed in order to obtain the Swedish electronic identification.
Changes to VAT registration details. Notification of changes for the taxable person, such as change of activities or changes of other information that was provided when registering for VAT, should be submitted either online (www.verksamt.se.) or through the use of form SKV 4639. No time limits/penalties apply for this notification requirement.
D. Rates
The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of VAT, including the zero-rate.
The VAT rates are:
• Standard rate: 25%
• Reduced rates: 6%, 12%
• Zero-rate: 0%
The standard rate of VAT applies to all supplies of goods or services, unless a specific measure provides for a reduced rate, the zero-rate or an exemption.
Examples of goods and services taxable at 0% (i.e., exempt supplies with credit)
• Exports of goods and related services
• Supplies of intangible services made to either another taxable person established in the EU or to any recipient outside the EU (see the EU chapter)
• Books and newspapers
Examples of goods and services taxable at 6%
• Copyrights and artistic rights
• Cultural services (apart from cinema services, which are taxed at the standard rate)
• Passenger transport
• Reparation of bicycles, shoes, leather goods, clothing and household textiles
• Foodstuffs
• Hotel accommodation
Examples of goods and services taxable at 12%
• Restaurant and catering services
The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.
Examples of exempt supplies of goods and services
• Immovable property
• Medical services
• Finance
• Insurance
• Pharmaceutical supplies (exempt with credit)
Option to tax for exempt supplies. Renting property or premises is an exempt service, but the supplier has the option to treat it as taxable when renting to taxable persons. Suppliers can, under certain circumstances, choose the option to tax by issuing an invoice with VAT.
E. Time of supply
The time when VAT becomes due is called the “time of supply” or “tax point.” The basic time of supply for goods is when the goods are delivered. The basic time of supply for services is when the service is completed. If the consideration is paid in full or in part before the goods are delivered or the services provided, the actual tax point becomes the date on which payment is received (but the tax point only applies for the amount paid).
Deposits and prepayments. For deposits and prepayments, the time of supply is the date on which the advance payment is received.
Continuous supplies of services. There are no special time of supply rules in Sweden for supplies of continuous supplies of services. As such, the general tax point rules apply (as outlined above). However, for continuous cross-border supply of services for which the buyer is liable to report VAT in Sweden, the time of supply is deemed to be at the end of each calendar year if the services are provided over a period of more than one year and no payments are made during the period in question.
Goods sent on approval for sale or return. There are no special time of supply rules in Sweden for supplies of goods sent on approval for sale or return. As such the normal tax point rules apply (as outlined above).
Reverse-charge services. The time of supply for goods or services subject to the reverse charge is the earlier of the date of delivery or the date on which payment is received.
Leased assets. The time of supply for leased assets depends on if it is a prepayment or not (see above).
Imported goods. The time of supply for imported goods is when the import takes place.
Intra-Community acquisitions. The time of supply for intra-Community acquisitions of goods is the same as the time of supply for domestic supplies.
Intra-Community supplies of goods. An invoice must be issued for an intra-Community supply at the latest on the 15th day of the month following the supply.
Distance sales. The time of supply for supplies of distance sales in Sweden is when the goods are delivered.
F. Recovery of VAT by taxable persons
A taxable person may recover input tax, which is VAT charged on goods and services supplied to it for business purposes. A taxable person generally recovers input tax by deducting it from output tax, which is VAT charged on supplies made.
The time limit for a taxable person to reclaim input tax in Sweden is six years. It is possible to recover input tax incurred in the six years prior to the current year by requesting a re-evaluation of the reporting period the VAT should have been recovered in.
Input tax includes VAT charged on goods and services supplied in Sweden, VAT paid on imports of goods and VAT self-assessed on intra-Community acquisitions of goods and reverse-charge services (see the EU chapter).
A valid tax invoice or customs document must generally support a claim for input tax.
Nondeductible input tax. Input tax may not be recovered on purchases of goods and services that are not used for business purposes (for example, goods acquired for private use by an entrepreneur). In addition, input tax may not be recovered for some items of business expenditure.
Examples of items for which input tax is nondeductible
• Purchases of cars
• Business entertainment (in excess of the allowable expense limits)
• Private expenditure
Examples of items for which input tax is deductible (if related to a taxable business use)
• Purchase, lease, maintenance and fuel for vans with a weight exceeding 3,500 kg and trucks
• Maintenance and fuel for cars and 50% lease of a car used for taxable business purposes (1,000 km a year)
• Conferences, seminars and training courses
• Advertising
• Business use of a mobile phone
• Hotel accommodation (excluding restaurant expenses)
• Restaurant expenses (SEK300 per person and occasionally alcohol included)
• Business entertainment (SEK180 exclusive of VAT)
• Business gifts (with a value of SEK180 or less exclusive of VAT and valued less than SEK225 inclusive of VAT)
Partial exemption. Input tax directly related to exempt supplies is not generally recoverable. If a Swedish taxable person makes both exempt and taxable supplies, it may not recover input tax in full. This situation is referred to as “partial exemption.” “Exempt-with-credit supplies” do not create any partial exemption, as these supplies are treated as taxable supplies for these purposes.
Credit notes. Credit notes may be issued in the following circumstances:
• They may be used to correct genuine errors or overcharges
• They may be issued following the cancellation of a supply
• They may give effect to a bonus or discount
• They may be issued as a result of the renegotiation of consideration for a supply
A credit note must show an unambiguous reference to the original invoice and the reduction in value and VAT on the supply.
Electronic invoicing. Electronic invoicing is mandatory in Sweden for certain taxable persons.
Scope of electronic invoicing. For B2B, B2C and business-to-government (B2G) supplies, electronic invoicing is mandatory for certain taxable persons in Sweden. There is no threshold at which taxable persons are required to adopt electronic invoicing in Sweden. The requirements for electronic invoicing are the same as those for paper invoicing.
For B2G supplies, electronic invoicing is mandatory. This is in line with EU Directive 2014/55/ EU (see the EU chapter).
For B2B and B2C supplies, electronic invoicing is allowed in Sweden but not mandatory. This is in line with EU Directive 2010/45/EU (see the EU chapter).
Electronic invoices can only be used if the customer has approved the use of such invoices (except for B2G supplies, where no approval is needed).
For the EU VAT in the Digital Age (ViDA) proposals, refer to the EU chapter.
Simplified VAT invoices. Simplified invoices are normally permitted if one of the following criteria is met:
• The invoice amount does not exceed SEK4,000 (approx. EUR350)
• Commercial trade or administrative practices or technical limitations makes it difficult to follow the normal invoicing rules
• The invoice is a credit note that is to be treated as an invoice in accordance with the Swedish VAT Act
Self-billing. Self-billing is allowed in Sweden. For a buyer to be allowed to use self-billing, the following conditions must be met:
• There needs to be an agreement in place between the seller and the buyer before the use of self-billing is started
• There needs to be a system in place to facilitate the seller’s possibility to confirm each and every self-billing invoice
• The invoice itself needs to contain the words “self-billing” or similar, clearly indicating that it is in fact an invoice issued by the buyer on behalf of the seller
Apart from the above, regular invoicing rules apply to self-billing invoices.
Proof of exports and intra-Community supplies. VAT is not chargeable on exported goods or intraCommunity supplies of goods (see the EU chapter). However, to qualify as exports and intraCommunity supplies, the export or supply must be supported by evidence confirming that the goods have left Sweden. Acceptable proof includes the following documentation:
• For an export, the stamped customs documentation and commercial documentation (such as bill of lading, copy of the invoice, delivery note and proof of payment)
• For an intra-Community supply, a copy of the invoice showing the customer’s valid VAT identification number (issued by another EU Member State), plus a range of commercial documentation (such as bill of lading, transport documentation, proof of payment and proof of receipt)
The Swedish courts have ruled that the supplier of goods has the burden to prove that the goods have actually left Sweden. From 1 January 2020, Article 45a of Regulation 2018/1912 should be directly applicable in Sweden. As such, meeting the criteria set out in the Regulation should be deemed sufficient to prove the removal of goods from Sweden. See the subsection on the Quick Fixes above.
No special documentation applies in Sweden for evidencing the application of the Quick Fixes. Normal intra-Community documentation rules apply.
Foreign currency invoices. Swedish taxable persons may maintain their accounts in either euros (EUR) or the domestic currency, which is the Swedish krona (SEK), depending on the place of supply rules. If a VAT invoice is issued in a different currency, the values for VAT purposes and the VAT amounts must be converted to EUR or SEK.
Supplies to nontaxable persons. Suppliers are generally not required to issue invoices to private consumers according to Swedish regulation. Suppliers of new means of transport, construction or development services, and distance sales made from another EU Member State to Swedish nontaxable persons, i.e., consumers, are obligated to issue an invoice.
Distance selling. For intra-Community distance sales made B2C, a full VAT invoice must be issued. However, if the supplier operates the OSS regime, then no full VAT invoice is required unless requested.
Records. In Sweden, examples of what records must be held for VAT purposes include invoices and other records for indirect tax (e.g., receipts, credit notes verifications).
In Sweden, VAT books and records can be kept outside of the country. This is provided that certain conditions are met, and the taxable person has notified the Swedish tax agency or Swedish Financial Supervisory Board. Should these conditions not be fulfilled, the business may apply for a special permit by the Swedish tax agency or the Swedish Financial Supervisory Board.
Record retention period. Records should be held as a minimum for seven years after the end of the calendar year in which the record was received or presented. For certain records for which the capital goods adjustment scheme applies, records need to be retained for seven years after the end of the adjustment period. For immovable property the adjustment period is 10 years, and for other capital goods the adjustment period is 5 years, meaning that the retention period for those records is 17 and 12 years, respectively.
Electronic archiving. Electronic archiving is allowed in Sweden. Records should be kept in the format in which the record was initially received or presented, meaning, for example, electronic invoices should be retained electronically, whereas physical invoices should be kept physically. Under certain restrictions, records may be transferred from one format to another, however, records still need to be kept in the original format for at least three years following the end of the calendar year in which the record was received or presented.
I. Returns and payment
Periodic returns. Periodic VAT returns are submitted in Sweden for monthly, quarterly or yearly periods, depending on the taxable person’s turnover.
VAT liabilities are normally reported on the same tax return form as payroll taxes and employee income tax amounts withheld by employers. Monthly VAT returns must be filed if the taxable person’s turnover exceeds SEK40 million. Otherwise, quarterly reporting may apply. However, a taxable person may opt to file monthly. A yearly reporting period applies for taxable persons whose turnover is less than SEK1 million per year. If yearly reporting is applicable, the VAT return should be submitted together with the income tax return. Note that the filing deadline for
include a representative that without being a legal representative, in fact has a controlling influence over the legal person.
Statute of limitations. The statute of limitations in Sweden is six years. It is possible to re-evaluate previously reported or non-reported VAT (both output and input tax) during the six years prior to the current year. This can be done on the request of the taxable person and by the Swedish tax agency as part of review.