Sweden joined the European Union in 1995. It has also been a member of the Schengen area since 1996 and trades in the Swedish Krona.

VAT rates in Sweden

The standard rate of VAT is 25%, and reduced rates of 6% and 12% are available.

VAT registration in Sweden

There is no VAT registration limit in Sweden for either established or non-established businesses.

Distance sales have a limit of SEK 320,000 for VAT registration.

The format for a VAT identification number is: SE 123456789 10 11 12. Every company must hold a number like this in order for accurate taxation.

VAT returns can be submitted monthly or quarterly and annual returns are not required.

Are there any Intrastat thresholds in Sweden?

Yes. There is a limit of SEK 4,500,000 for both dispatches and arrivals.

VAT recovery in Sweden

  • Is VAT recovery permitted for non-established non-EU businesses?

Yes, Sweden allows VAT recovery for all non-EU countries.

  • Are there any non-VAT recoverable expenses?

Yes, recovery of input tax is restricted on certain items, i.e. business entertainment and cars.

Reverse charge applies to the majority of cross border services. An extended charge applies to Swedish VAT registered customers who are supplied by non-established businesses.

Requirements and regulations in Sweden

Any company established in a non-EU member country must appoint a tax representative to register for VAT in Sweden.

Use and enjoyment rules do not apply in Sweden.

The period of VAT recovery by tax authorities has a timescale of 6 years.

Similarly, there is a period of 6 years for VAT deductions and refunds.

Please contact us for further information about paying taxes in Sweden, and a member of our team will be happy to help you.

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