VAT and Tax Processing

Most companies and self-employed individuals who sell goods and/or services within Sweden need to register for Swedish Value-added tax (VAT). The main exemption is foreign enterprises which only sell to Swedish VAT registered businesses. However, there are also certain specific trades which by Swedish law are free from VAT and in some lines of business it is voluntary to register for VAT. A business which is registered for Swedish VAT can get a refund on any VAT they themselves have paid out on goods and services.

All business registered for Swedish VAT are required to report VAT receipts and payments, either monthly, quarterly or annually depending on preferences and turnover.  Value Added Tax (VAT) is called MOMS (Swe. Mervärdesskatt) in Sweden. VAT and VAT refunds are reported as part of the monthly tax declaration that Swedish Resident companies and other organizations are required to complete each month. The standard VAT rate in Sweden is 25 percent with two reduced rates of 12 and 6 percent respectively. The 12 percent rate applies to food, hotel accommodations, camping, newspapers, books, magazines, cultural and sporting events. The 6 percent VAT rate applies mainly to passenger transportation and publications.

Some goods and services are exempt from VAT such as certain types of medical, dental and social care, education, banking and financial services, and certain cultural and sporting activities. All VAT at the retail level, no matter the rate, is always included in the price to the consumer. The net of received VAT and declared and paid VAT is to be paid to the Swedish National Tax Board. Thus, VAT is never an expense to the company.

KagNag can provide assistance in helping your company determine whether you need a VAT number for your business, apply for a VAT number and comply with Swedish regulations concerning invoices and contracts. We also calculate the amount of tax to be paid by you or refunded to you, issue a VAT report and fill in the periodic form relating to services sold within EU. Most companies and self-employed individuals who sell goods and/or services within Sweden need to register for Swedish Value-added tax (VAT). The main exemption is foreign enterprises which only sell to Swedish VAT registered businesses, but there are also certain specific trades which by Swedish law are free form VAT.