Once a non-resident Swedish VAT registration has been received, companies are obliged to follow the local rules on VAT bookkeeping and rates. This includes:
It is important for companies to apply the correct VAT rates on their invoices as they will be held liable for any mistakes and shortfalls. Sweden sets its own standard and reduced VAT rates. As a member of the EU, the standard, higher rate must be above 15%.
The current rates are:
|EU country||Country code||VAT rates||Which goods or services?|
|Sweden||SE||Standard rate||25%||All other taxable goods and services.|
|Reduced rates||6%||Public transport; books; newspapers and periodicals; admission to cultural events; writers and composers; admission to sports events; use of sports facilities.|
|12%||Some foodstuffs; hotel accommodation; restaurants.|
The tax point (time of supply) rules in Sweden determine when the VAT is due. It is then payable to the tax authorities 10 days after the VAT reporting period end (monthly or quarterly).
For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.