Sweden introduced the Value Added Tax (VAT) system in 1968. The Swedish Tax Authority is the Swedish Tax Agency (Skatteverket) with local offices across Sweden, but headquartered in Solna, Stockholm County.
Reduced VAT Rate: 12%
Hotel services, sale of artwork, foodstuff, restaurant and catering services, repair service of several goods
Reduced VAT Rate: 6%
Books, periodicals, copyrights, personal transport, admission to cultural events, electronic publications.
Invoices can be issued either in electronic or paper format subject to agreement with the other party. According to Chapter 11, Section 8 of the Swedish Tax Law, the following information is required to be recorded on the invoices issued:
Our VAT technology platform, Comply helps companies manage their complex, country-specific tax requirements including Sweden’s VAT requirements.
Using AI and machine learning, our technology puts your VAT data through over 300 automated VAT rules, checking for errors, and preparing VAT returns for approval and submission. Comply provides a full audit trail for the Swedish Tax Authorities.
Monthly: Annual turnover is above SEK 40 million
Quarterly: Annual turnover is between SEK 1 million and SEK 40 million
Annual: Annual turnover is below SEK 1 million
Submission can be done electronically but it is not mandatory. Electronic submission requires electronic identification which is available only to Swedish citizens (please see above at the section Registration).
Since 1 July 2021, VAT exemption on low value goods has been eliminated. Since that date, all sales of goods imported in the EU are subject to the VAT of the country of destination of goods, regardless of the value of the imported goods.
For sales of imported goods with a value lower than or equal to €150, the seller can declare and pay the VAT due in all Member States with a single VAT administration by using the IOSS (“Import One Stop Shop”). He may then sell the goods VAT included to his buyer.
The IOSS system concerns distance sales of goods:
If the seller opts for the IOSS to declare sales to private individuals, he must:
If the seller does not opt for the IOSS, the individual buyer must pay the VAT due on import as well as any administrative fees to the carrier delivering the goods to him, at the time of receipt of his order.
An official fiscal representative should be appointed in case the taxable person is not from a member state of the European Union, Norway, Aland Islands, Iceland, the Faroe Islands and Greenland.
A fiscal representative can only be a person who is permanently resident in Sweden, or a legal entity whose fixed business establishment is in Sweden.
If the taxpayer perform sales or purchases with a company from another member state of the European Union, Intrastat reports should be submitted subject to the following thresholds:
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