VAT Sweden Guide
Read our guide and find out everything you need to know about VAT in Sweden, from registration to filing, and more.
Both EU and non-EU companies doing business in Sweden may, under certain circumstances, be required to register for VAT. Read our Sweden VAT guide to better understand the rules in Sweden and how they might affect your business.
What is the VAT rate in Sweden?
VAT in Sweden is known as Mervärdesskatt (Moms). The standard Swedish VAT rate is 25%, one of the highest in the EU. Sweden also has two reduced rates of 12% and 6%, as well as a 0% VAT rate.
Registering for VAT in Sweden
Business based in Sweden with an annual turnover exceeding SEK 80,000 must register for VAT. There is no minimum threshold for non-resident businesses.
Businesses and individuals must register for VAT in Sweden once their intra-community distance sales reach the €10,000 threshold (unless registered with the One Stop Shop). This is in line with the rest of the European Union following new rules introduced on July 1, 2021. If storing products in Sweden or participating in an FBA (Fulfilled-by-Amazon) program that includes Sweden, VAT registration is also required.
To register for Swedish VAT, businesses should apply via the Swedish Tax Authorities. Applications are dealt with at either the Stockholm or Malmo offices depending on where the business is based. It usually takes around four to six weeks to receive a Swedish VAT number.
Fiscal representative in Sweden
As set out in the EU VAT Directives, a fiscal representative is required for non-EU companies operating in Sweden. They will be jointly liable for any Swedish VAT due.
Swedish VAT return filing and penalties
Depending on the annual turnover of your business, Swedish VAT returns need to be submitted monthly, quarterly, or annually.
Submit a monthly VAT return if the annual turnover is above SEK 40 million.
Submit a quarterly VAT return if the annual turnover is between SEK 1 million and SEK 40 million.
Submit an annual VAT return if the annual turnover is below SEK 1 million (when VAT return is required).
The Swedish Tax Agency will inform you how often you need to report your VAT.
Monthly Swedish VAT returns are due on the 26th of the month (27th in December) following the end of the VAT return period.
Quarterly VAT returns are due on the 12th of the second month following the end of the VAT return period. Returns due in January or August should be submitted by the 17th of the second month following the end of the VAT return period.
Annual Swedish VAT returns are due on the 26th of the second month (27th of the second month when the return is due in December) following the end of the VAT return period.
Failure to file a VAT return may result in a fine of between SEK 500 and SEK 1,000 (per declaration). The penalty for late payment of VAT in Sweden is interest of 1.25% plus 15% for every month the payment is overdue.
Swedish Intrastat declarations
Both resident and non-resident companies moving goods across Swedish borders may be required to submit Intrastat declarations. Intrastat returns must be filed by the 10th of the month, with late filings potentially incurring a penalty. The annual threshold for filing an Intrastat return is SEK 15,000,000 for arrivals and SEK 4,500,000 for dispatches.
Reverse charge in Sweden
The reverse charge mechanism shifts the responsibility for reporting and paying VAT from the supplier to the recipient of certain goods or services. When supplies of goods are made by a foreign supplier to a VAT-registered customer in Sweden, the reverse charge mechanism applies (provided the supplier isn’t VAT-registered in Sweden). For supplies of services to Sweden, the reverse charge only applies to those related to real estate (when the customer is VAT-registered).