Stockholm GMT +1
EY Hamngatan 26 P.O. Box 7850 103 99 Stockholm Sweden
Indirect tax contacts
Martin Carlsson
+46 70 318 97 79 martin.carlsson@se.ey.com
Linnea Jacobsen +46 76 847 26 24 linnea jacobsen@se.ey.com
Anna Berggren +46 72 178 74 74 anna.berggren@se.ey.com
A. At a glance
Name of the tax
Value-added tax (VAT)
Local name Mervärdesskatt (Moms)
Date introduced 1 January 1969
Trading bloc membership European Union (EU)
Administered by Swedish Ministry of Finance (http://www.sweden.gov.se/sb/d/2062)
VAT rates
Standard 25% Reduced 6%, 12% Other Zero-rated (0%) and exempt
VAT number format SE 5 5 6 1 2 3 1 2 3 4 0 1
VAT return periods
Thresholds Registration
Established
Monthly (if turnover exceeds SEK40 million)
Quarterly (with the possibility to opt for monthly) Annually (if turnover is below SEK1 million)
SEK30,000 (approx. EUR2,900)
Non-established None
Distance selling
Intra-Community acquisitions
SEK99,680 (approx. EUR10,000)
SEK90,000 (approx. EUR8,300)
Electronically supplied services SEK99,680 (approx. EUR10,000)
Recovery of VAT by non-established businesses Yes
B. Scope of the tax
VAT applies to the following transactions:
• The supply of goods or services made in Sweden by a taxable person
• The intra-Community acquisition of goods in Sweden for goods coming from another European Union (EU) Member State by a taxable person (see the chapter on the EU)
• Reverse-charge services received by a taxable person in Sweden
• The importation of goods from outside the EU, regardless of the status of the importer
Quick Fixes. Pending introduction of a “definitive” system for the VAT treatment of intra-Community supplies of goods to taxable persons, the EU has adopted Quick Fixes for intra-Commu nity trade in goods. For an overview of the Quick Fixes rules, see the chapter on the EU.
Sweden has implemented the Quick Fixes as per 1 January 2020 through regulation according to the Swedish VAT Act. The Quick Fixes concern the following three items:
• Call-off stock simplification
• Uniform rules to simplify chain transactions
• Simplified proof of intra-Community supply of goods
• Conditions for zero-rating of intra-Community supply of goods
Call-off stock simplification. Under the call-off stock simplification, a supplier’s transportation of goods from a stock in another EU Member State to its customer’s call-off stock, Sweden would not trigger a VAT registration obligation in Sweden, provided that certain conditions are met. Instead, the supplier would be deemed to make an intra-Community supply of goods in the EU Member State of dispatch, and the customer would be deemed to make an intra-Community acquisition of goods in Sweden.
The scope of simplification applies to a call-off stock arrangement where:
• Goods are moved from another Member State to another taxable person in Sweden under a call-off agreement
• The supplier is not established in Sweden
• The customer is VAT-registered in Sweden
• The supplier knows the customer’s identity and VAT registration number at the time of the transfer
• The supplier maintains a call-off stock register and records the transaction in its EC Sales List
• The supply of goods take place within 12 months of arrival
Chain transactions. In the case of several consecutive sales of the same product, where the prod uct is transported from one EU Member State to another EU Member State directly from the first supplier to the last purchaser in the chain, the transport shall be attributed to the supply made to that supplier, other than the first, who transports or has transported the goods (the intermediary).
The transport shall, however, be attributed to the supply made by the intermediary if it has com municated to its supplier its VAT registration number in the EU Member State from which the goods were transported.
Conditions for zero-rating of intra-Community supply of goods. The VAT exemption can be granted to a supplier if the following material conditions are met:
• The goods must be transported from one EU Member State to the customer in another EU Member State
• The supplier has a valid VAT number of the customer in the other EU Member State
• The Intra-Community supply of goods has been reported in the supplier’s EC Sales List with reference to the customer’s VAT number
Effective use and enjoyment. To avoid instances of nontaxation or double taxation, EU Member States can apply use and enjoyment rules that allow a service that is “used and enjoyed” in the EU to be taxed or prevent a service that is “used and enjoyed” outside the EU from being taxed. If a service is taxed in the EU under the use and enjoyment provisions, a non-EU supplier of the service may be required to register for VAT in every Member State where it has customers that are not taxable persons. For the information regarding the rules relating to VAT registration, see the chapters on the respective countries of the EU.
In Sweden, the following services are subject to the “use and enjoyment” provisions when provided business-to-consumer (B2C):
• Transfers and assignments of copyrights, patents, licenses, trademarks and similar rights
• Legal services, auditing services, data processing and provision of information and similar services
• Insurance and reinsurance services
• The grant of access to, and transmission or distribution through a natural gas system within the community or a gas network connected to such a system, a system for electricity or a system for heating and cooling, as well as services directly connected thereto
• Marketing and adverting services
Transfer of a going concern. A merger or transfer of assets between two taxable persons can, under certain circumstances, be deemed as a transfer of going concern (TOGC), which is outside the scope of the VAT system and therefore not subject to VAT.
A TOGC is outside the scope of VAT if the following requirements are met:
• The assets must be a part of a transfer of a business as a going concern
• The assets must be used by the acquirer with the intention to carry on the same business as the transferor
• If only a part of the business is transferred, the transferred part must be capable of operating separately
• If the transfer would be subject to VAT, the acquirer would be entitled to deduct the VAT charged
• If the transferor is a taxable person the acquirer must be a taxable person or become a taxable person as a result of the transfer
C. Who is liable
A taxable person is an individual or business entity that makes taxable supplies of goods or services, intra-Community acquisitions or distance sales for consideration in the course of a business in Sweden.
A VAT registration threshold of SEK30,000 applies in Sweden. If a taxable person exceeds trans actions subject to VAT of SEK30,000 annually, it must notify the tax agency of its liability to register. Any taxable persons conducting business transactions that have not yet exceeded the threshold for the fiscal year are not liable to report and pay VAT for those transactions unless registered for VAT. Taxable persons whose annual turnover subject to VAT does not exceed the threshold may opt to register for and pay VAT.
Special rules apply to foreign or “non-established businesses.”
Exemption from registration. Taxable persons that only make supplies that are exempt from VAT (i.e., supplies that are zero-rated) are not required to register for VAT.
Voluntary registration and small businesses. A taxable person that is not required to register for VAT as a result of its turnover being below SEK30,000 can still choose to voluntarily register for VAT. If a taxable person does choose to voluntarily register for VAT, it cannot change this
decision until at least two years have passed since the end of the business year during which the taxable person was registered for VAT.
Group registration. Companies in the financial sector as well as companies in “an agency rela tionship” for income tax purposes may form a VAT group. If a VAT group is formed, the group is liable for VAT if it engages in business that accrues a VAT liability.
All members of a VAT group in Sweden are jointly and severally liable for VAT debts and penal ties. If the VAT group does not fulfill its obligation of paying VAT or paying the correct amount of VAT, all members of the VAT group are jointly and severally liable for VAT debts and penalties.
Only entities with a fixed establishment in Sweden may be part of a Swedish VAT group. A VAT group consists of taxable persons that are closely connected to each other “financially, economically and organizationally.” All three of these requirements must be satisfied. The following are the applicable rules:
• A “financial link” exists between two companies if one company holds more than 50% of the votes in the other
• An “economic link” exists if the companies continually exchange goods or services
• An “organizational link” exists if the group members have some joint administrative functions, such as joint management or joint marketing
There is no minimum duration that a VAT group must be in place for. Both the forming of and the cessation of a VAT group may, however, only happen following a formal decision by the Swedish Tax Agency.
Holding companies. In Sweden, a pure holding company cannot be a member of a VAT group. A pure holding company that conducts no other activities than passively holding shares in subsid iaries cannot be regarded as a taxable person. Such a pure holding company can therefore not be part of a VAT group according to the Swedish VAT Act.
Cost-sharing exemption. The VAT cost-sharing exemption (in accordance with VAT Directive 2006/112/EEC Article 132(1)(f) has been implemented in Sweden. This provides an option to exempt support services that the cost-sharing group supplies to its members, providing certain conditions are met (in accordance with specific requirements laid out in Swedish VAT law).
Supplies of services by independent groups of physical or legal persons, who are carrying on an activity that is exempt from VAT or in relation to which they are not taxable persons, for the purpose of rendering their members the services directly necessary for the exercise of that activ ity, where the renumeration for the services corresponds to the person’s cost for providing the services. The exemption only covers services that are not normally provided by someone else outside the group. This means the application of the exemption does not allow distortion of competition.
Fixed establishment. Sweden has not implemented any legal definition of fixed establishment. According to the Swedish Tax Agency, the following three should be considered when determining if a fixed establishment is at hand:
• Personnel resources
• Technical resources
• A sufficient degree of permanence
Such criteria are cumulative, meaning that all three criteria need to be met for the requirements for having a fixed establishment to be fulfilled.
Non-established businesses. A non-established business that makes supplies of goods or services in Sweden must register for VAT if it is liable to account for Swedish VAT on the supply or if it makes intra-Community supplies or acquisitions of goods.
The reverse charge applies to supplies made by non-established businesses to taxable persons in Sweden, i.e., a business-to-business (B2B) supply. Under this measure, the taxable person that receives the supply must account for the Swedish VAT due. If the reverse charge applies, the non-established business is not required to register for Swedish VAT. The reverse charge does not apply to the transport of persons, cultural services or supplies made to private persons or nontax able legal persons.
Consequently, non-established businesses must register for Swedish VAT if they make any of the following supplies:
• Intra-Community supplies or acquisitions (see the chapter on the EU)
• Distance sales in excess of the threshold (see the chapter on the EU)
• Supplies of goods and services that are not subject to the domestic reverse charge
Tax representatives. Businesses that are established in the EU are not required to appoint a tax representative to register for VAT in Sweden. However, EU businesses may opt to appoint a tax representative. This measure also applies to businesses established in any non-EU country that has mutual assistance provisions with the EU or with Sweden.
Businesses that are established outside the EU must generally appoint a resident tax representative to register for Swedish VAT. A tax representative is not jointly liable for VAT debts with the business that it represents.
Reverse charge. The reverse charge applies to local supplies of goods or services relating to immovable property (other than supplies of construction services provided to companies within the construction industry) made by non-established businesses to taxable persons in Sweden. The reverse charge only applies if the foreign entrepreneur does not have a fixed establishment in Sweden (which intervenes in the supply) and has not opted to be liable for VAT on the supply.
Domestic reverse charge. The domestic reverse charge applies to the following:
• Supplies of construction and building services to other taxable persons selling construction and building services more than occasionally, trading with emission licenses, gold and other specific metals and scrap metal
• Trading with emission licenses
• Gold and other specific metals
• Scrap metal
• Mobile phones, laptops, tablets, game consoles and integrated circuit units (when the tax base in the invoice exceeds SEK100,000) and the seller and purchaser are or shall be registered for VAT in Sweden
Digital economy. Specific VAT rules apply to cross-border supplies of goods and services sold via the internet (e-commerce) in all EU Member States with effect from 1 July 2021. These new rules apply to all direct sales to nontaxable persons (in practice these are mostly private individuals), but we refer to these rules as e-commerce VAT rules because most of these transactions are conducted via the internet. In general, the place of supply is in the country of consumption, i.e., where the goods are shipped to or where the buyer of the goods or services resides, subject to any “use and enjoyment” provisions that may override this rule (see Section B, Effective use and enjoyment subsection above). Therefore:
• For supplies of services made by a nonresident supplier to a business customer (B2B), the business customer is responsible for accounting for the VAT due, using the reverse charge.
• For supplies of goods made by a nonresident supplier to a business customer (B2B), where the goods are transported from another EU Member State, the business purchasing the goods is responsible for accounting for the VAT due, as an intra-Community acquisition. If the goods come from outside the EU, the purchaser may have to report an importation of goods.
• For supplies of goods or services made by a nonresident supplier to a final consumer (B2C), the supplier is generally responsible for charging and accounting for the VAT due at the rate
applicable in the customer’s country (unless the supplier’s sales fall beneath the distance selling threshold of EUR10,000 (approx. SEK99,680) with effect from 1 July 2021). This VAT can be reported using a single VAT registration, using a “One-Stop-Shop” mechanism.
For more details about intra-EU distance sales, see the chapter on the EU.
Effective 1 July 2021, an e-commerce supplier may have a choice of how to account for VAT on its B2C supplies.
Local VAT registration. A nonresident supplier may choose to register for VAT in each Member State and account for VAT on all supplies made and recover input tax in accordance with local rules (see the Non-established businesses subsection above). Non-EU businesses may be required to appoint a fiscal representative for accounting for the VAT due on these transactions.
In Sweden, the application for a local VAT-registration is made to the Swedish Tax Agency. The application process normally takes four to eight weeks from the filing of the form.
One-Stop Shop. Effective 1 July 2021, a supplier can choose to account for VAT due under the EU One-Stop Shop (OSS), which can be used for intra-EU cross-border supplies of goods and all cross-border supplies of services made to final consumers in the EU. Unlike the previous Mini One-Stop-Shop (MOSS) scheme that applied until 30 June 2021, the OSS is not limited to crossborder supplies of electronic services, telecommunication services and broadcasting services.
The OSS is an electronic portal that allows businesses to:
• Register for VAT electronically in a single Member State for all intra-EU distance sales of goods and for B2C supplies of services
• Declare and pay VAT due on all supplies of goods and services in a single electronic quarterly return
The OSS can be used by businesses established in the EU and outside the EU. If a supplier or a deemed supplier decides to register for the OSS, it must declare and pay VAT for all supplies (goods as well as services) that fall under the OSS.
In Sweden there are no additional specific local rules that apply.
For more details about the operation of the OSS, see the chapter on the EU.
Import One-Stop Shop. Effective 1 July 2021, the Import One-Stop-Shop (IOSS) scheme applies for B2C distance sales of goods from outside the EU.
Effective 1 July 2021, VAT is due on all commercial goods imported into the EU regardless of their value. The actual supply is subject to VAT in the country where the goods are imported (the country of destination). The IOSS facilitates the declaration and payment of VAT due on the sale of low-value goods (i.e., consignments valued at less than EUR150 per consignment). It allows suppliers selling low-value goods dispatched or transported from a non-EU country to customers in the EU to collect, declare and pay the VAT due. If the IOSS is used, the importation into the EU is exempt from VAT.
In Sweden there are no additional specific local rules that apply.
For more details about the IOSS, see the chapter on the EU.
The use of the IOSS special scheme is not mandatory. If VAT is not collected via the IOSS scheme, the importation of goods into the EU is subject to import VAT in the country of final destination and the Member State can decide who is liable to pay the import VAT, which could be the customer or the seller (or an electronic interface).
Postal Services and Couriers Scheme. If the IOSS is not used and the customer is liable for the import VAT due on the supply (and importation) of consignments with a small intrinsic value
(i.e., less than EUR150), the VAT can be collected using the special scheme for postal services and couriers.
In Sweden there are no additional specific local rules that apply.
For more details about the special scheme for postal services and couriers, see the chapter on the EU.
Online marketplaces and platforms. Under the new EU VAT e-commerce rules, effective 1 July 2021, taxable persons that “facilitate” certain B2C sales of goods are deemed to have purchased and then supplied those goods themselves. This means that the single supply from the “underly ing” supplier to the final consumer is split into two deemed supplies:
• A supply from the supplier to the facilitator (deemed B2B supply)
• A supply from the facilitator to the final customer (deemed B2C supply). Any intermediation service provided by the facilitator is disregarded for VAT purposes
This provision does not cover all sales facilitated via the facilitator. It only covers distance sales of goods imported from non-EU jurisdictions in consignments with an intrinsic value not exceed ing EUR150. The jurisdiction of residence of the supplier using the facilitator is irrelevant. The supply to the facilitating platform is VAT exempt and the supplies made by that platform follow the e-commerce VAT rules as described above. In addition, the provision also covers sales within the EU, if the supplier is not established within the EU. This applies to both local ship ments within one Member State, as well as intra-Community shipments. In both cases, the final customer must be a nontaxable person.
In Sweden there are no additional specific local rules that apply.
For more details about the rules for online marketplaces, see the chapter on the EU.
Vouchers. Sweden implemented the EU Directive on VAT treatment of vouchers into the Swedish VAT Act as of 1 January 2019. The Swedish VAT Act has specific rules that define a voucher, a single purpose voucher (SPV), a multipurpose voucher (MPV) and when a taxable event takes place and at what value. A voucher may be described as an instrument that businesses are obliged to accept as full or part payment for goods or services. Vouchers may be physical or electronic.
An SPV is an instrument where it is already at the time for issuance possible to establish all facts that are needed to decide in what country VAT shall be paid and with what amount, i.e., which taxable country, what kind of taxable supply, at what tax rate and at what amount VAT should be calculated on. All vouchers that are not SPVs are deemed as MPVs.
VAT is due when an SPV is sold if the voucher refers to a taxable transaction within Sweden. A MPV, on the other hand, is not subject to VAT when sold at a time before it is used as means as payment for goods or services. The VAT is instead due at the time when the MPV is redeemed against goods and services.
Registration procedures. The most effective way to register is online at https://www.verksamt.se/ en/web/international/home. A Swedish electronic identification is required to use the online service. Otherwise, fill out the application form SKV 4620 on paper and send it to the Swedish Tax Agency. Non-established taxable persons use form SKV 4632, application for foreign entre preneurs. Foreign entrepreneurs need to append a registration certificate not older than six months to the application form.
The Swedish Tax Agency’s website provides a how-to guide, application forms to fill out and other necessary information. The site is also available in English. See www.skatteverket.se. The how-to guide is under the “Employers, Businesses and Corporations” heading and more information is available under the “Tax Information” and “VAT Information” headings.
Normally, it takes between three and six weeks to register for VAT.
Deregistration. The most effective way to deregister from VAT in Sweden is to do it online at www.verksamt.se. A Swedish electronic identification is needed to gain access. If the taxable person does not have an electronic identification, it can use form SKV 4639 and send it to the address printed on the form or to send a letter to the Swedish tax authorities requesting a deregistration and explain the reason for deregistering. Non-established businesses must often use hard copies, since a Swedish personal identification number is needed in order to obtain the Swedish electronic identification.
Changes to VAT registration details. A notification of changes for the taxable person, such as change of activities or changes of other information that was provided when registering for VAT, should be submitted either online (www.verksamt.se.) or through the use of form SKV 4639. No time limits/penalties apply for this notification requirement.
D. Rates
The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of VAT, including the zero-rate.
The VAT rates are:
• Standard rate: 25%
• Reduced rates: 6%, 12%
• Zero-rate: 0%
The standard rate of VAT applies to all supplies of goods or services, unless a specific measure provides for a reduced rate, the zero-rate or an exemption.
Examples of goods and services taxable at 0% (i.e., exempt supplies with credit)
• Exports of goods and related services
• Supplies of intangible services made to either another taxable person established in the EU or to any recipient outside the EU (see the chapter on the EU)
Examples of goods and services taxable at 6%
• Books and newspapers
• Copyrights and artistic rights
• Cultural services (apart from cinema services, which are taxed at the standard rate)
• Passenger transport
• Foodstuffs
• Hotel accommodation
Examples of goods and services taxable at 12%
• Restaurant and catering services
• Reparation of bicycles, shoes, leather goods, clothing and household textiles
The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.
Examples of exempt supplies of goods and services
• Immovable property
• Medical services
• Finance
• Insurance
• Pharmaceutical supplies (exempt with credit)
Option to tax for exempt supplies. Renting property or premises is an exempt service, but the supplier has the option to treat it as taxable when renting to taxable persons. Suppliers can choose the option to tax by issuing an invoice with VAT.
E. Time of supply
The time when VAT becomes due is called the “time of supply” or “tax point.” The basic time of supply for goods is when the goods are delivered. The basic time of supply for services is when the service is completed. If the consideration is paid in full or in part before the goods are deliv ered or the services provided, the actual tax point becomes the date on which payment is received (but the tax point only applies for the amount paid).
Deposits and prepayments. For deposits and prepayments, the time of supply is the date on which the advance payment is received.
Continuous supplies of services. There are no special time of supply rules in Sweden for supplies of continuous supplies of services. As such, the general tax point rules apply (as outlined above). However, for continuous cross-border supply of services for which the buyer is liable to report VAT in Sweden, the time of supply is deemed to be at the end of each calendar year if the ser vices are provided over a period of more than one year and no payments are made during the period in question.
Goods sent on approval for sale or return. There are no special time of supply rules in Sweden for supplies of goods sent on approval for sale or return. As such the normal tax point rules apply (as outlined above).
Reverse-charge services. The time of supply for goods or services subject to the reverse charge is the earlier of the date of delivery or the date on which payment is received.
Leased assets. The time of supply for leased assets depends if it is a prepayment or not (see above).
Imported goods. The time of supply for imported goods is when the import takes place.
Intra-Community acquisitions. The time of supply for intra-Community acquisitions of goods is the same as the time of supply for domestic supplies.
Intra-Community supplies. An invoice must be issued for an intra-Community supply at the latest on the 15th day of the month following the supply.
Distance sales. The time of supply for supplies of distance sales in Sweden is when the goods are delivered.
F. Recovery of VAT by taxable persons
A taxable person may recover input tax, which is VAT charged on goods and services supplied to it for business purposes. A taxable person generally recovers input tax by deducting it from output tax, which is VAT charged on supplies made.
The time limit for a taxable person to reclaim input tax in Sweden is six years. It is possible to recover input tax incurred in the six years prior to the current year by requesting a re-evaluation of the reporting period the VAT should have been recovered in.
Input tax includes VAT charged on goods and services supplied in Sweden, VAT paid on imports of goods and VAT self-assessed on intra-Community acquisitions of goods and reverse-charge services (see the chapter on the EU).
A valid tax invoice or customs document must generally support a claim for input tax.
Nondeductible input tax. Input tax may not be recovered on purchases of goods and services that are not used for business purposes (for example, goods acquired for private use by an entrepreneur). In addition, input tax may not be recovered for some items of business expenditure.
Examples of items for which input tax is nondeductible
• Purchases of cars
• Business entertainment (in excess of the allowable expense limits)
• Private expenditure
Examples of items for which input tax is deductible (if related to a taxable business use)
• Purchase, lease, maintenance and fuel for vans with a weight exceeding 3,500 kg and trucks
• Maintenance and fuel for cars and 50% lease of a car used for business (1,000 km a year)
• Conferences, seminars and training courses
• Advertising
• Business use of a mobile phone
• Hotel accommodation (excluding restaurant expenses)
• Restaurant expenses (SEK300 per person and occasionally alcohol included)
• Business entertainment (SEK180 exclusive of VAT)
• Business gifts (with a value of SEK180 or less exclusive of VAT and valued less than SEK225 inclusive of VAT)
Partial exemption. Input tax directly related to exempt supplies is not generally recoverable. If a Swedish taxable person makes both exempt and taxable supplies, it may not recover input tax in full. This situation is referred to as “partial exemption.” “Exempt-with-credit supplies” do not create any partial exemption, as these supplies are treated as taxable supplies for these purposes.
The amount of input tax that a partially exempt business may recover is generally calculated in the following two stages:
• The first stage identifies the input tax that may be directly allocated to taxable and to exempt supplies. Input tax directly allocated to taxable supplies is deductible, while input tax directly related to exempt supplies is not deductible.
• The remaining input tax that is not allocated directly to exempt and taxable supplies is appor tioned based on the value of taxable supplies compared with total turnover, or it is apportioned by another reasonable method. If turnover is used to calculate the recoverable amount, the recovery percentage can be rounded up to the nearest whole number.
Approval from the Swedish Tax Agency is not required to use the partial exemption standard method in Sweden. However, if any special methods are used instead, it is common that disclo sures are made, especially if the calculation deviates from the turnover allocation method, but this is not a requirement. As long as the special method is deemed reasonable and sufficiently accurate it should be accepted.
Capital goods. Capital goods are items of capital expenditure that are used in a business over several years. Input tax is deducted in the VAT year in which the goods are acquired. The amount of input tax recovered depends on the taxable person’s partial exemption recovery position in the VAT year of acquisition. However, the amount of input tax recovered for capital goods must be adjusted over time if the taxable person’s partial exemption recovery percentage changes in any year during the adjustment period or if goods are taken from a taxable sector or activity for use in an exempt sector or activity, or vice versa.
The capital goods adjustment applies to the following assets for the number of years indicated:
• Investments made on immovable property that cost more than SEK400,000 exclusive of VAT: adjusted for a period of 10 years
• Application form SKV 5801 should be sent to the Swedish Tax Agency at the following address: Skatteverket Utlandsenheten SE-205 31 Malmö Sweden
• Claims may be submitted in Swedish, English, French or German.
• The minimum claim period is three months, and the maximum period is one calendar year. The minimum period of three months does not apply to a period ending at the end of a calendar year. The minimum claim for a period of less than a year but of at least three months is SEK4,000. The minimum amount for an annual claim or for the remainder of a calendar year is SEK500.
• The average handling period in Sweden is two to three months, and the time limit is six months.
Late payment interest. In case of late VAT payments to EU businesses, interest is paid when the refund is paid late from the Swedish Tax Agency. Payment shall be made at the latest 10 working days after the decision deadline. The decision deadline is four months from the date of the application or two months after a request for more information from the Swedish Tax Agency. In Sweden, interest is not paid on late refunds to non-EU non-established businesses.
H. Invoicing
VAT invoices. A taxable person must generally issue VAT invoices for all supplies made to other businesses or legal persons. Invoices are not required for retail transactions with private persons.
A VAT invoice containing the information required by the VAT act is necessary to support a claim for input tax deduction or a refund for foreign businesses (see the chapter on the EU).
Credit notes. Credit notes may be issued in the following circumstances:
• They may be used to correct genuine errors or overcharges
• They may be issued following the cancellation of a supply
• They may give effect to a bonus or discount
• They may be issued as a result of the renegotiation of consideration for a supply
A credit note must show an unambiguous reference to the original invoice and the reduction in value and VAT on the supply.
Electronic invoicing. The Swedish VAT Act permits electronic invoicing in line with EU Directive 2010/45/EU (see the chapter on the EU). Electronic invoices can be only used if the customer has approved the use of such invoices. However, electronic invoicing is mandatory for public procurement by authorities
Simplified VAT invoices. Simplified invoices are permitted if one of the following criteria is met:
• The invoice amount does not exceed SEK4,000 (approx. EUR373)
• Commercial trade or administrative practices or technical limitations makes it difficult to follow the normal invoicing rules
• The invoice is a credit note that is to be treated as an invoice in accordance to the Swedish VAT Act
Self-billing. Self-billing is allowed in Sweden. For a buyer to be allowed to use self-billing, the following conditions must be met:
• There needs to be an agreement in place between the seller and the buyer before the use of self-billing is started
• There needs to be a system in place to facilitate the seller’s possibility to confirm each and every self-billing invoice
• The invoice itself needs to contain the words “self-billing” or similar, clearly indicating that it is in fact an invoice issued by the buyer on behalf of the seller
Apart from the above, regular invoicing rules apply to self-billing invoices.
Proof of exports and intra-Community supplies. VAT is not chargeable on exported goods or intraCommunity supplies of goods (see the chapter on the EU). However, to qualify as exports and intra-Community supplies, the export or supply must be supported by evidence confirming that the goods have left Sweden. Acceptable proof includes the following documentation:
• For an export, the stamped customs documentation and commercial documentation (such as bill of lading, copy of the invoice, delivery note and proof of payment)
• For an intra-Community supply, a copy of the invoice showing the customer’s valid VAT identi fication number (issued by another EU Member State), plus a range of commercial documenta tion (such as bill of lading, transport documentation, proof of payment and proof of receipt)
The Swedish courts have ruled that the supplier of goods has the burden to prove that the goods have actually left Sweden. From 1 January 2020, Article 45a of Regulation 2018/1912 should be directly applicable in Sweden. As such, meeting the criteria set out in the Regulation should be deemed sufficient in order to prove the removal of goods from Sweden. See the subsection on the Quick Fixes above.
Foreign currency invoices. Swedish taxable persons may maintain their accounts in either euros (EUR) or the domestic currency, which is the Swedish krona (SEK), depending on the place of supply rules. If a VAT invoice is issued in a different currency, the values for VAT purposes and the VAT amounts must be converted to EUR or SEK.
Supplies to nontaxable persons. Suppliers are generally not required to issue invoices to private consumers according to Swedish regulation. Suppliers of new means of transport, construction or development services, and distance sales made from another EU Member State to Swedish non taxable persons, i.e., consumers, are obligated to issue an invoice.
Transactions between related parties. For a transaction between related parties, the value for VAT purposes is calculated as follows, supplies between related parties, where the supplier or the recipient has a limited right to deduct VAT, must be made at the market value. Otherwise, a reassessment of the value up to the market value may be done by the Swedish Tax Agency.
Records. In Sweden, examples of what records that must be held for VAT purposes include invoices and other records for indirect tax (e.g., receipts, credit notes verifications).
Record retention period. Records should be held as a minimum for seven years after the end of the calendar year in which the record was received or presented. For certain records for which the capital goods adjustment scheme applies, records need to be retained for seven years after the end of the adjustment period. For immovable property the adjustment period is 10 years, and for other capital goods the adjustment period is 5 years, meaning that the retention period for those records is 17 and 12 years, respectively.
The records can be kept outside of Sweden, provided that certain conditions are met, and the taxable person has notified the Swedish Tax Agency or Swedish Financial Supervisory Board. Should these conditions not be fulfilled, the business may apply for a special permit by the Swedish Tax Agency or the Swedish Financial Supervisory Board.
Electronic archiving. Records should be retained in the format in which the record was initially received or presented, meaning that, for example, electronic invoices should be retained elec tronically, whereas physical invoices should be retained physically. Under certain restrictions, records may be transferred from one format to another, however, records still need to be retained in the original format for at least three years following the end of the calendar year in which the record was received or presented.
I. Returns and payment
Periodic returns. Periodic VAT returns are submitted in Sweden for monthly, quarterly or yearly periods, depending on the taxable person’s turnover.
VAT liabilities are normally reported on the same tax return form as payroll taxes and employee income tax amounts withheld by employers. Monthly VAT returns must be filed if the taxable person’s turnover exceeds SEK40 million. Otherwise, quarterly reporting may apply. However, a taxable person may opt to file monthly. A yearly reporting period applies for taxable persons whose turnover is less than SEK1 million per year.
Monthly VAT returns generally must be submitted by the 26th day of the month after the end of the reporting period. Quarterly VAT returns must be submitted by the 12th day of the second month after the end of the reporting period. The same rules apply to taxable persons that have yearly turnover of less than SEK40 million and that apply for monthly VAT returns. Taxable persons whose turnover exceeds SEK40 million must file monthly returns by the 26th day of the month following the return period.
Periodic payments. VAT returns must be filed with full payment of VAT. Payment must be made by the same day as the deadline of submission of the VAT return (see above). VAT returns must be completed and return liabilities must be paid in SEK. The payment should be made to the Swedish tax account of the taxable person in accordance with the details as outlined on the filing receipt. Payment of VAT must be made via bank transfer (both local and international are accept able).
Electronic filing. Electronic filing is allowed in Sweden, but not mandatory. Periodic VAT returns can be submitted electronically by using electronic identification. The electronic identification is personal and only available to someone with a Swedish personal identification number. The right to file electronically can be granted by the authorized signatories of the taxable person, either by using an e-service that requires the authorized signatory to already have obtained electronic identification themselves or by filing in a paper form (SKV 4809). The filing authorization granted applies to multiple filings such as VAT returns, CIT returns, PAYE, excise duty returns and grants reading access to the Swedish tax account of the taxable person.
Payments on account. Payments on account are not required in Sweden.
Special schemes. Cash accounting. Sweden operates a cash accounting scheme with a threshold of EUR350,000 (approximately SEK3.7 million).
Annual returns. Annual returns are not required in Sweden.
Supplementary filings. Intrastat. A Swedish taxable person that trades with other EU countries must complete statistical reports, known as Intrastat, if the value of its annual sales or purchases of goods exceeds certain thresholds. Separate reports are required for intra-Community acquisi tions (Intrastat Arrivals) and for intra-Community supplies (Intrastat Dispatches).
Intrastat. A Swedish taxable person that trades with other EU countries must complete statistical reports, known as Intrastat, if the value of its annual sales or purchases of goods exceeds certain thresholds. Separate reports are required for intra-Community acquisitions (Intrastat Arrivals) and for intra-Community supplies (Intrastat Dispatches).
The threshold for Intrastat Arrivals in 2021 is SEK9 million. The threshold for Intrastat Dispatches in 2021 is SEK4.5 million. At the time of preparing this chapter, the Intrastat thresh olds for 2022 have not yet been announced.
The Intrastat reporting period is monthly. The submission deadline is normally between the 10th and 15th day following the reporting period for paper returns and between the 13th and 18th day for electronic returns. Intrastat reports must be filed in SEK.
EU Sales Lists. If a Swedish taxable person makes intra-Community supplies in any return period, it must submit an EU Sales List (ESL). An ESL is not required for any period in which the taxable person has not made any intra-Community supplies.
ESLs must be submitted monthly with respect to goods. An ESL regarding supplies of services must be submitted quarterly. However, if a business supplies both goods and services, the report ing must be in accordance with the rules regarding goods. Taxable persons may apply to make quarterly submissions if the total amount of supplies and transfers of goods does not exceed SEK1 million for the current quarter as well as for the preceding four quarters. The due date is the 20th day of the month following the end of the ESL return period for paper ESLs and the 25th day for electronic ESLs.
ESL reports must be filed using amounts expressed in SEK.
Correcting errors in previous returns. A taxable person that submits its returns electronically can correct previous returns in the same way, i.e., electronically. In addition, corrections can always be filed on paper by using the return form for the reporting period in question. Further, it is possible to request that the Swedish Tax Agency correct previous returns via a request for reassess ment.
Digital tax administration. There are no transactional reporting requirements in Sweden.
J. Penalties
Penalties for late registration. No specific penalty is assessed for late registration. However, interest is charged on any VAT paid late as a result of late registration (see below for details).
Penalties for late payment and filings. A penalty of SEK625 is imposed for late filing of a VAT return. The penalty is increased to SEK1,250 if the tax agency has ordered the VAT return to be submitted.
Late payment of VAT results in the imposition of an interest penalty. The interest consists of base interest plus 15%. The base interest is 1.25% as of 1 January 2013.
In principle, penalties may be imposed for late filing of Intrastat reports or for errors or omis sions. However, penalties are rarely imposed. If a penalty is assessed, the courts take several factors into consideration (such as the size of the business and its turnover) in determining the amount owed.
A penalty of SEK1,250 is imposed for late, missing or inaccurate ESLs.
Penalties for errors. A tax penalty may be imposed by the Swedish tax agency for incorrect VAT reporting and VAT reporting accrual errors. The penalty is calculated as 20% of the incorrect reported VAT (i.e., as 20% of incorrectly reported input tax or 20% of such output tax that incor rectly has not been reported). In cases of VAT reporting accrual errors, the penalty is calculated as 2%-5% of the VAT reported in an incorrect VAT reporting period. The tax penalty may be subject to partly or full redemption depending of the matters at hand.
Penalties for fraud. There are no specific tax penalties, besides the tax penalties described above regarding errors, for fraud. Fraud, as well as incorrect VAT reporting, knowingly or by negli gence, may, however, be subject to criminal penalties under the Swedish Tax Evasion Act.
Personal liability for company officers. A representative of a legal person can become personally liable for virtually all unpaid taxes and fees in the legal person’s tax account. Representatives normally include legal representative (e.g., CEO and board members). The responsibility may also include a representative that without being a legal representative, in fact has a controlling influence over the legal person.
Statute of limitations. The statute of limitations in Sweden is six years. It is possible to re-evalu ate previously reported or non-reported VAT (both output and input tax) during the six years prior to the current year. This can be done on the request of the taxable person and by the Swedish Tax Agency as part of review.