Who may be required to register as a VAT payer?
Obtaining an EU VAT certificate and VAT registration applies to businesses that:
- import goods to Sweden,
- buy or sell goods in Sweden,
- sell under intra-community delivery of goods or acquire goods from the territory of the European Union,
- store goods in Sweden for resale,
- organise live events, exhibitions, conferences, etc. in Sweden,
- are not VAT payers but purchase reverse charge services from Sweden.
The accounting periods are month, quarter or year. The frequency of filing the return depends on the value of annual sales subject to VAT. Taxpayers with an annual turnover in excess of SEK 40,000,000 submit monthly returns, when the values are between SEK 1,000,000 and SEK 40,000,000 quarterly returns apply, and if the value of sales does not exceed SEK 1,000,000 traders may opt for annual returns.
For monthly returns, the deadline for submission of the return and payment of the VAT due is the 26th day of the month following the end of the accounting period. For quarterly returns, the deadline is the 12th day of the second month following the end of the accounting period, and for annual returns, the deadline is the 26th day of the second month following the end of the accounting period. Declarations can be sent to the tax office in both electronic and paper form.
Late submission of the return may result in a penalty from the tax office of SEK 500 to SEK 1,000. Failure to pay the VAT liability is subject to interest on the outstanding amount. Incorrect or inaccurate declarations may result in a penalty of 20 per cent of the incorrectly reported VAT.
A foreign company doing business in Sweden must also comply with local rules on, among other things: invoicing and archiving of receipts and records for seven years.
Currently, VAT rates in Sweden are:
- 25% – standard rate
- 6% & 12% – reduced rates (6% covers: books [including e-books], newspapers and certain magazines, admission to cultural and sporting events, domestic passenger transport; 12% applies to particular food products, accommodation services, restaurant and catering services, certain works of art and antiques
- 0% - includes certain pharmaceutical products, services related to the production of magazines for non-profit organisations, intra-Community and international passenger transport
Services we provide in this country:
- VAT Registration
- VAT Settlements
- VAT Consulting