VAT no Sweden

You must register with the Swedish Tax Agency and get a VAT no if you conduct economic activities in Sweden and sell goods or services that are liable to VAT.

What is VAT?

VAT (Value Added Tax) is a tax on consumption, applied to almost all goods and services.

Consumers pay VAT, but businesses are responsible for collecting and remitting it to the state. For businesses, VAT is not an expense because they can usually deduct the VAT paid on their purchases (input VAT) from the VAT collected on their sales (output VAT).

If you import products for your business, you need to account for and pay VAT if you are registered for VAT.

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VAT no Sweden

A VAT number, also known as a VAT identification number, is a unique identifier assigned to businesses and other entities that are registered for Value Added Tax (VAT). This number is used for VAT-related purposes, such as tracking VAT filings and ensuring compliance with tax regulations.

Structure of VAT no Sweden

Every country in EU issues its own national VAT number. Therefore, businesses supplying goods or services in several EU countries might be liable to register for VAT in each of these countries.

In the European Union, a VAT number typically starts with a country code followed by a series of digits. For example, a Swedish VAT number starts with “SE” followed by 12 digits.

The use of VAT no

VAT numbers are used to identify tax status and place of taxation.

Businesses use their VAT number on invoices, tax returns, and other official documents to report and pay VAT. It helps tax authorities track VAT transactions and detect any discrepancies or fraud.

Who issues VAT numbers?

Only tax administrations, such as the Swedish Tax Agency, can issue a VAT number.

Verification

VAT numbers can be verified online through the EU Commission’s website to ensure they are valid.

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VAT in Sweden, liability requirements

The main rule is that all goods and services are liable to VAT, unless they are exempted in the VAT Act.

However, to be liable for VAT, there are a few conditions to be met:

  1. There must be a turnover (sale or self-supply).
  2. The turnover must be liable for VAT (with some exceptions).
  3. The business must independently carry on economic activity.
  4. The turnover must occur in Sweden.

VAT registration in Sweden

How you register a business at the Swedish Tax Agency differs depending on if you want to establish a business in Sweden that you are currently operating abroad or if you want to start a new business in Sweden. You can read more about this at the Swedish Tax Agency.

Businesses registered for VAT must submit tax returns and pay VAT to the Swedish Tax Agency. They pay the difference between the VAT charged on sales (output VAT) and the VAT paid on purchases (input VAT). Even if no VAT is due, businesses must submit a VAT return, indicating zero if applicable.

This obligation also applies to those registered for VAT with the right to make deductions, even if they do not need to charge VAT.

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Engaging a Representative

Businesses can appoint a representative to handle VAT reporting on their behalf.

Threshold for VAT exemption

From January 1, 2025, the turnover threshold for VAT exemption in Sweden will increase from SEK 80,000 to SEK 120,000.

Reverse charge of VAT

In certain cases, the reverse charge mechanism applies, where the customer reports and pays the VAT. This is typically used for cross-border transactions within the EU. The business invoice as usual but without VAT and indicates the reverse charge on the invoice.

Accounting periods

The general rule is to report VAT quarterly, but depending on the business’s size and turnover, reporting can be done monthly or yearly.

It is for example common that smaller businesses report VAT quarterly to the Swedish Tax Agency.

Special circumstances

The Swedish Tax Agency may, under special circumstances, decide how often you need to report VAT.

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VAT rates on goods and services

The standard VAT rate is 25%, applicable to most goods and services.

However, some goods and services have reduced rates, such as 6% for books and newspapers and 12% for artists who sell their own work.

Some transactions may be exempt from VAT altogether.

For more details on different VAT rates, read more at the Swedish Tax Agency.

Introduction offer to smaller business owners

Do you consider starting a business in Sweden? Or consider moving your business to Sweden? Then you might benefit from our offer.

We can help you with tax administration regarding a new business in Sweden or if you are moving existing business to Sweden.

To smaller business owners moving into Sweden, we offer a one-hour introduction on typical tax matters such as permanent establishment and residency issues at the price of 1 650 SEK + VAT.

Contact us and we will get back to you.

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Our tax accounting services

Depending on what kind of business you have and how it is organized the way you register for tax purposes differ. Examples of our tax accounting services:

  • Income tax returns
  • VAT
  • Business acquisitions
  • Tax advisory
  • Introduction meeting International taxation

Our full range of services to both larger and smaller companies are known for its high quality and cost effectiveness. Phone calls and e-mails are always answered promptly. It is our believe that accessibility, personal service, and a value for money offer, is market leading.

VAT no – Revideco

We are an independent partner-led firm, happy to be considered in the same grouping as the “big” firms as we are frequently asked to quote alongside of them.

Our strong team of accountants and consultants deliver personal service with the aim to find the most efficient solution for each and one of our clients, something we have done since 1994.

Being a part of a worldwide network, MGI Worldwide, enables us to provide tax services abroad. Advice on international tax is therefore provided in collaboration with our global network.

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