The VAT in Sweden is paid by the people and companies buying services and products (buyers) and is collected by the sellers who are required to forward it to the government through the local tax office in the cities they are registered. For this purpose, they need to register for the payment of this tax.
Below, our lawyers in Sweden explain how the VAT mechanism works here. One of our most sought services is VAT registration in Sweden, which is why to meet clients’ demands we help in such an endeavor.
| Quick Facts | |
|---|---|
| We offer VAT registration services (Yes/No) |
Yes, our lawyers in Sweden offer these services |
|
Standard rate |
25% |
|
Lower rates |
12%, 6%, 0% |
| Who needs VAT registration in Sweden |
Companies that offer goods or services in Sweden that are subject to VAT, for example small companies which have a minimum annual turnover of 30,000 SEK must pay the VAT. |
| Time frame for VAT registration in Sweden(approx.) | 3-4 weeks |
| VAT for real estate transactions |
VAT at 25% is payable only if the landlord |
| Exemptions available (Yes/No) |
Yes, healthcare, education and financial services |
| Filing period | Monthly and quarterly filings are required |
| VAT returns support (Yes/No) | Yes, you can get support from our lawyers in Sweden |
| VAT refund availability (Yes/No) | Yes, for EU and Non-EU companies. Contact our lawyers in Sweden for their services |
| Local tax agent required (Yes/No) | No |
| VAT refund | Sweden allows tourists and others who purchase goods within Sweden for export to receive a refund of any VAT taxes paid |
| Who collects VAT | Swedish Tax Agency |
|
Documents for VAT registration in Sweden |
A certificate of incorporation, A copy of the passport (for sole traders only), A power of attorney for the fiscal representative (if applicable) |
| VAT number format | Country code +12 characters (SE 123456789012) |
Table of Contents
VAT registration in Sweden for foreign companies
The VAT registration threshold is zero for international companies doing business in Sweden who are VAT/GST/Tax registered in their home state.
Companies from outside of Europe cannot register for VAT on their own in Sweden. Acquiring the help of a local lawyer is highly recommended in this situation.
You are welcome to get in touch with our lawyers in Sweden. They will speak on your behalf to the regional tax authorities and undertake all of your VAT duties in 2024.
The international tax offices of the Swedish Tax Agency in Malmo or Stockholm receive the original, signed application from foreign businesses applying for a Swedish VAT number.
Business registrations from the following nations are handled by the Malmo office: Albania, Austria, Bosnia-Herzegovina, Bulgaria, Croatia, Denmark, Czech Republic, and the Faeroe Islands, France, Germany, Greece, Greenland, Hungary, Iceland, Italy, Macedonia, Montenegro, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Turkey.
The foreign tax office in Stockholm handles all other nations. Businesses that should register must do so before they begin doing activities. Swedish VAT registration that is delayed is not subject to any fines.
However, failure to register may result in fines for late or non-payment of VAT as well as penalties for failing to file VAT returns on time. If you are a foreigner who needs information about VAT registration in Sweden in 2024, you can get in touch with our lawyers.
Our Swedish lawyers can offer you detailed and step-by-step guidance in this regard.
Furthermore, if you want to open a company in this country, our lawyers can also inform you about different company structures and their regulations. You can select any company that is suitable for you.
VAT registration in Sweden for EU companies in 2024
Companies based in Europe are not required to appoint a VAT agent.
They may, however, engage a proxy holder (agent) to handle the tax requirements on their behalf to simplify their interactions with the local tax authorities.
It is not also essential to present a bank guarantee. The company is completely liable for paying its VAT obligations.
Although EU companies are not obliged to hire VAT agents, still the services of our lawyers are at your disposal if you need assistance with the local tax authorities.
Furthermore, our lawyers can also assist you with their expert services if you need an accountant for your company. It is important to hire local accountants to look after the company’s matters because they have an in-depth understanding of financial matters and business market.
VAT application in Sweden
The VAT in Sweden is applicable at multiple levels, meaning that it is calculated for each step of the production and sale process. However, it is only levied once on the final consumer implying no liability on the company producing and/or marketing it.
In order to pay the value added tax in 2024, a company must register with the tax authorities in Sweden on a voluntary or a mandatory basis.
If you are interested in starting a business in Sweden, our law firm can help you with the registration procedure, as well as with obtaining a VAT number.
Voluntary VAT registration in Sweden in 2024
A Swedish company can obtain a VAT number on a voluntary basis, meaning that it is not required to reach the turnover that transforms it into a mandatory VAT payer.
The procedure can be completed during the business registration procedure when the application for the VAT number can be filed with the Swedish Tax Agency.
Our Swedish law firm can help you have your business up and running with a VAT number in a matter of days. Our support also refers to accounting services. Even if a company only operates in one country, the taxation of multinational corporations is subject to constant change and can be challenging to understand. This is why, if you are part of a group of companies, you can count on our accountants in Sweden who will help you respect international tax laws. For instance; if you have a branch office, our Swedish CPA can assist you in maintaining its accounting. According to the Bookkeeping Act, a foreign firm that operates in Sweden through a branch is obligated to keep accounting records. For the operations carried out in Sweden, a branch must keep accounting records and must maintain independent accounting records from those of the overseas corporation.
How to obtain a VAT number in Sweden when reaching the registration threshold
While most companies choose to register for VAT in Sweden voluntarily as they can obtain refunds when meeting certain requirements, there are also those that wait until they reach the mandatory registration threshold which depends on whether the company is a small one, it is a national or EU-based enterprise, or if it is an online one.
Here is what you need to consider about VAT registration in Sweden based on reaching the mandatory threshold:
- small entities must have a minimum annual turnover of 30,000 SEK to become a VAT payer;
- for online companies based in EU countries selling goods in Sweden, the minimum turnover is 320,000 SEK (approx. 34,000 EUR) for VAT registration;
- the Intrastat VAT registration threshold is 9 million SEK for goods entering Sweden, and 4.5 million SEK for goods exiting the country.
At the middle of 2021, a new threshold was introduced for Swedish online companies selling goods to clients in EU countries: these are required to register for VAT once their turnover exceeds 10,000 EUR (they are required to report the VAT in the countries they sell these goods).
Another important aspect is that foreign companies starting operations in Sweden are required to obtain VAT numbers from the first day of activity, therefore the mandatory registration threshold does not apply in their case.
Do not hesitate to get in touch with our law firm in Sweden for more information on the legal obligations of foreign companies operating here.
Documents required to obtain a Swedish VAT number
VAT registration in Sweden in 2024 implies filing the following documents with the tax authorities:
- the VAT registration form filled out in the national language;
- a copy of the article of association;
- a VAT liability certificate;
- power of attorney;
- a contract, or any document that verifies the legality of the company’s activity taking place in the country;
- some of these documents may need to be translated into Swedish, according to the Swedish tax authorities.
Those interested in appointing a representative must also have a power of attorney drafted for the agent handling the registration procedure.
It is not mandatory to nominate a tax agent, however, it can be very useful for foreign investor seeking to benefit from a simple process.
The format of Swedish VAT number
A distinctive VAT number is provided to the business once the Swedish VAT registration has been granted, which typically takes three to four weeks.
Each EU member state’s VAT number follows a standard format. The format used in Sweden is the prefix SE followed by 12 digits, for instance; SE123456789123.
If you need more information about VAT registration in Sweden, please get in touch with the lawyers located at our law firm in Sweden.
Which companies need a VAT number in Sweden?
Any company conducting business in an EU member state must have a VAT number.
Businesses must specifically register for VAT in the following circumstances:
- perform the distribution of goods or services subject to the VAT tax;
- make a purchase of products within the EU;
- get services for which there is a VAT obligation;
- provide services for which the customer must pay VAT.
For further assistance with VAT registration, you are encouraged to get in touch with our attorneys in Sweden.
How long it takes to get a VAT number in Sweden?
Your VAT number can be obtained in two weeks to two months, depending on the state.
In Sweden, the process of getting the VAT number typically takes one month if your file is complete. Additionally, there can be further questions and criteria during the registration process.
Your business is authorized to begin adding VAT to its international transactions after the registration of your EU VAT number.
Furthermore, you will be required to submit regular VAT returns to your local value-added tax authority to file and report on that VAT.
Our lawyers in Sweden offer comprehensive support for EU VAT registration, compliance, and filing.
To discuss your needs for VAT compliance, consult one of our attorneys right away. Besides this assistance, if you are looking to acquire a virtual office in Sweden, you can get help from our lawyers.
They can inform you about the features of different virtual office packages. This assistance can help you select a suitable virtual office for your business.
VAT rates in Sweden
Just as in other countries, the VAT in Sweden is also levied at different rates, as it follows:
- the standard rate which is levied at a 25% rate;
- a 12% rate which is imposed on food products, hotel accommodation, and work of art;
- a 6% rate applied on media products, such as books and magazines, concert tickets, and several passenger transportation services.
Here is also a short video:
Invoicing and reporting requirements
Sweden-issued invoices should include the following:
- date on which the invoice was issued;
- a unique invoice number;
- the addresses of supplier and customer;
- the VAT number of the supplier;
- information about the products or services rendered, including the quantity;
- delivery date, if it differs from the invoice date;
- the amount of the net value of the good/service;
- the rate of VAT applied;
- the total amount due on the invoice.
The following are the Swedish VAT reporting period thresholds:
- monthly for a turnover above SEK 40 million annually;
- quarterly for an annual turnover from SEK 1 million to SEK 40 million;
- annually, if the yearly turnover is less than SEK 1 million.
If you need guidance on the value added tax or other levies imposed in Sweden in 2024, do not hesitate to contact us. We are at your disposal with a variety of legal services.