Country Guide: Sweden
Looking to expand your e-commerce business to Sweden, then look no further, here is AVASK's guide to VAT in Sweden:
VAT in Sweden
Sweden is a member of the European Union (EU) and draws up its tax rules according to the laws or directives issued from Brussels by the EU. The current VAT directive applies to all 27 member states of the European Union, and it governs the rules on VAT compliance, and in some part, covers the setting of VAT rates.
As an EU member state, Sweden is obliged to implement the VAT directives, which provides guidance on VAT. Where there is a conflict, the European Union’s directive takes precedence. Sweden is not a member of the Eurozone and uses its own currency, the Swedish Krona (SEK). There is currently no timeframe for Sweden to adopt the Euro and the Swedish Krona is not yet in the exchange rate mechanism (ERM II). In Sweden VAT is known as: Mervärdesskatt, or MOMS.
VAT registration in Sweden
Both EU and non-EU businesses may trade in Sweden without establishing a local presence. This is known as non-resident VAT trading. There is no VAT threshold in Sweden for the registration of non-resident traders, but you will need one to record transactions and your Swedish customers will want proof that you have obtained one.
There are strict rules on the situations where VAT registration is permitted. Common scenarios that require Swedish VAT registration include:
- Importing goods into Sweden;
- Organising live events, conferences, etc. in Sweden;
- Holding goods in a warehouse in Sweden as stock for resale;
- Buying goods within Sweden that are subsequently re-sold in-country;
- Selling goods from Sweden to other EU member states;
- Distance-selling to private individuals in Sweden, e.g. internet retailing or trading through an e-commerce platform.
Registering for Swedish VAT genrrally takes two weeks once all documentation has been submitted to the tax authority, but this varies from seller to seller and will depend on the specifics of an individual company.
Swedish VAT compliance
There are detailed rules controlling the recording and processing of Swedish transactions for VAT purposes. This includes guidelines on:
- Swedish invoice requirements;
- When to issue a Swedish tax invoice;
- Foreign currency reporting;
- Credit notes and corrections;
- Correcting entries from prior returns;
- Which accounting records must be maintained.
VAT rates in Sweden
|VAT Rate||% Rate|
Country Profile: Sweden
Swedish E-commerce facts:
|Population||10.04 million |
|Currency:||Swedish Krona (SEK)|
|Number of e-commerce users:||8.3 million |
|Revenue in e-commerce market:||£8.7 billion|
|Estimated market growth:||5.2% to £10.7 billion by 2024|
Swedish thresholds and additional summary:
|Distance Selling Threshold (DST)||SEK 320,000|
|VAT number format:||SE 123456789012|
|VAT return period:|
(dependent on turnover)
|Annually: turnover below |
SEK 1 million
Quarterly: turnover between SEK 1 and 40 million
Monthly: turnover above
SEK 40 million
|VAT return deadline||Varies depending on return frequency and period end|
|Annual VAT filing deadline:||Not required|
|EC sales lists reporting||Monthly or quarterly|