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
Standard Rate 25%
Reduced Rate 12%
6%
Zero Rate 0%
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Country Profile: Sweden

Swedish E-commerce facts:

Population 10.04 million
(January 2020)
Currency: Swedish Krona (SEK)
Number of e-commerce users: 8.3 million
(January 2020)
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
Intrastat Thresholds:

Dispatches:
SEK 9 million

Arrivals:
SEK 4.5 million

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

Read more about International VAT and Compliance:

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