Sweden Sales Tax VAT
The standard VAT rate in Sweden is 25%. with reduced rates of 12% and 6% for food, accommodation rental, books, newspapers and other goods and services. Examples of exempt supplies are healthcare, financial services and education.
Sweden comes under the EU VAT rules, and is part of the EU single market economy. VAT Directives are issued by the EU which lay out the principles of the VAT regime to be adopted by the member states, including Sweden. These Directives take precedence over the local legislation
Foreign companies may register for VAT in Sweden without the need to form a local company; this is known as non-resident VAT trading. There is no VAT threshold in Sweden for the registration of foreign traders and a foreign business must register for VAT from the first day of starting activities in Sweden. An application for a VAT number must be received by the VAT Department no later than 14 days before the first taxable supply; this also applies where foreign businesses execute intra-community acquisitions as these may trigger the need to VAT register.
Non-EU companies may need to appoint a local fiscal representative in some cases.
There are strict rules on the situations where a registration is permitted. Common scenarios which require a Swedish VAT registration include:
- importing goods into the EU via Sweden
- buying and selling goods within Sweden
- holding goods in a warehouse in Sweden as stock
- selling goods from Sweden to other EU countries
- acquiring goods from other EU countries into Sweden
- distance selling to private individuals in Sweden from another EU country e.g. internet retailing.
If you wish to apply for Sales Tax in Sweden, please register in the form below the reasons for needing sales tax VAT in Sweden or send us an email.