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Swedish VAT compliance and rates

Swedish VAT compliance

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:

  • Disclosure requirements for invoices as outlined in the Swedish VAT Act.
  • Proper invoicing for goods or services in accordance with the Swedish time of supply VAT Act.
  • Use of electronic invoices, and approvals by customers
  • Maintenance of accounts and records, which must be held for at least seven years.
  • Processing of credit notes and other corrections.
  • Use of approved foreign currency rates.

Swedish VAT rates

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:

  • Sweden standard VAT rate: 25%.
  • Swedish reduced VAT rate: 12% (hotels and food)
  • Swedish reduced VAT rate: 6% (books, passenger transport and cultural events and activities)
  • Exempt from Swedish VAT: insurance, financial services, medical, immovable property

What is the tax point for Swedish VAT?

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.

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