VAT Guide for Businesses with Customers in Sweden

VAT Rates in Sweden

The standard Value Added Tax (”Mervärdesskatt” (MOMS)) rate in Sweden is 25%, with some services exempt from Swedish VAT, such as the sale and rental of property.

VAT Registration Thresholds in Sweden

• VAT registration threshold for domestic established sellers: SEK 80,000. Taxpayers who only make supplies that are exempt from VAT should not be required to register.
• VAT registration threshold for non-established sellers: No registration threshold
• VAT registration threshold for intra-EU distance selling of goods and B2C telecommunications, broadcasting & electronic services (TBE): EUR 10,000 (net) per calendar year
• VAT registration threshold for non-resident, non-EU based suppliers of Electronically Supplied Services (ESS): No registration threshold
• VAT registration threshold for non-resident, non-EU based suppliers of Electronically Supplied Services (ESS): No registration threshold

Swedish VAT Number Format

Individuals: Personnummer and Samordningsnummer

• Personnummer: Social security number assigned to people registered in the population record
  • Format: 2-digits for century + 6-digit date of birth + 3-digit birth number + 1 check digit
• Samordningsnummer: Coordination number assigned to people who are not registered in the population record
  • Format: 6-digit date of birth (the day is increased by 60) + 3-digit birth number + 1 check digit

Businesses: Organisationsnummer and Momsregistreringsnummer

• Organisationsnummer: Unique 10-digit identifier for legal entities established in Sweden
• Momsregistreringsnummer: 12-digit VAT number
  • Format: Country code SE + organisationsnummer + digits “01”

• For individualsFormat: 19651207-3245
• For businessesFormat: SE556123123401

Sweden VAT ID Validation

Need to look up and validate VAT numbers in Sweden?

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VAT on Electronically Supplied Services (ESS) in Sweden

Digital Services in the European Union (EU) are often referred to as electronically supplied services (ESS). Sweden applies the harmonized EU VAT rules for ESS.

• For B2B supplies of such services, the general place of supply rule for services has to be taken into consideration.
• For B2C supplies, the EU ESS rules should apply to foreign companies selling to Swedish consumers.

Under the EU’s B2C ESS rules, until the sales value reaches EUR 10,000 (including distance sales of goods), the seller can charge VAT where it is resident. Once the sales exceed the threshold, the seller should register for VAT in Sweden, or it can choose to account for the VAT under the EU’s One Stop Shop (OSS) regime.

VAT Rate: 25% VAT is typically applied to the sale of affected Electronically Supplied Services

Will your business need to pay VAT on digital services in Sweden in 2024?

Learn More About VAT on Digital Services in Sweden

Marketplace & Platform Operator Rules in Sweden

Sweden applies the harmonized European Union’s (EU) VAT rules for marketplace & platform operators.

Supply of goods

A marketplace is deemed to have received and supplied the goods themselves. This transaction is split into two supplies:

• A supply from the underlying supplier to the marketplace (deemed B2B supply)
• A supply from the marketplace to the final customer (deemed B2C supply).

This rule covers the following:

• Distance sales of goods imported to the EU with a value not exceeding EUR 150
• Supplies of goods to customers in the EU, irrespective of their value, when the underlying supplier is not established in the EU (both domestic supplies and distance sales within the EU are covered).

Supply of services

When electronically supplied services are sold through an intermediary, e.g. a marketplace for applications, the intermediary is deemed to have received and supplied the services themselves. Therefore, the VAT liability shifts to the intermediary from the underlying supplier.

Invoice Requirements in Sweden

According to the Swedish VAT Act, invoices should contain the following information:

• Document & general transaction information
  • Date of issue
  • Sequential number of the invoice
  • Date of supply if it is different from the date of issue
• Supplier information
  • Name, address, and VAT number
• Customer information
  • Name and address
  • VAT number if it is liable to pay the VAT
• Financial transaction information
  • Description of the goods or services
  • Quantity
  • Unit price excl. VAT
  • VAT rate(s)
  • VAT amount
  • Total amount of the goods or services excl. VAT per rate
• Additional information that may be required:
  • VAT exemption reference
  • Reference to reverse charge, self-billing, or special scheme for travel agencies

A simplified invoice should contain the following:

• Date of issue
• Name, address, and VAT number of the supplier
• Description of the goods or services
• VAT amount

E-Invoicing & Digital Reporting for Sweden

Business-to-government (B2G) e-invoicing has been mandatory in Sweden since April 1, 2019.

Learn more about E-Invoicing and Digital Reporting in Sweden

Governmental Body Responsible for E-invoicing and Digital Reporting in Sweden

The Agency for Digital Government (”Myndigheten för Digital Förvaltning” (DIGG)) is responsible for e-invoicing in Sweden.

VAT Payments and Returns in Sweden

Full VAT Returns

Sweden does not provide simplified VAT returns for VAT-registered non-resident taxpayers supplying qualifying electronically supplied services. Instead, they can avoid VAT registration in Sweden and use the EU One-Stop Shop (OSS) return.

Penalties in case of late filings or misdeclarations

In the case of the late filing of VAT returns and payments, the Swedish Tax Agency should enforce the following penalties:

• SEK 625 for late filing or SEK 1,250 if the return is filed late after receiving an official notice
• A base interest of 3.75% plus an additional 18.75% interest is imposed for late payment