For resident organizations, the VAT refund is first applied towards social taxes that are owed by the organization with any remainder paid back to the company as a VAT refund. You can get a refund of VAT on goods and services that are purchased in Sweden if you are a foreign entrepreneur that is not required to be registered for VAT in Sweden. For representation organizations, the VAT refund process typically takes 3 to 6 months and requires that the original invoices for the goods and services purchased be submitted along with the application.

The following conditions must be fulfilled for the VAT to be refunded to you:

• The VAT must be on the purchase (acquisition) or import of goods or services for your business in countries other than Sweden.
• Your sale (turnover) would have been subject to VAT, or would have entailed the right to a refund if it had taken place in Sweden.
• If your sale (turnover) takes place in another European Economic Area (EEA) country then it is subject to VAT or entitles you to a refund in that country. This condition applies to applications received from 1 July 2003.

As a foreign entrepreneur, you can also get a VAT refund for goods or services that you sell (turn over) in Sweden when a VAT-registered buyer is tax-liable for the turnover (known as “reversed charge”).

You are not entitled to repayment if the Swedish VAT regulations prohibit deduction. In Sweden, there are limitations on the right to deductions for, among other things, cars and business entertainment. If you run a travel agency business, you are not entitled to a refund for goods and services that directly benefit the traveler, such as hotel rooms, restaurants and personal transport.

If you have not sold the goods or services but have simply acted as an agent, you can only claim a refund if your principal would have been entitled to a refund if he had acted in his own name. If the agency work took place in several stages, each stage must have been entitled to a refund. As the person applying for a refund, you must show that this right existed.

When can repayment take place?

• You are entitled to repayment no earlier than the point at which goods have been delivered to you or brought into Sweden.
• A service has been provided to you.
• You have paid in advance for ordered goods or services.

Your application is to be accompanied by your VAT registration certificate or equivalent document. The certificate or its equivalent must not be older than 12 months.

Your refund application must show the following separately:

• VAT on fees for passage over the Öresund Link.
• VAT applying to reversed charge.
• Other VAT.

KagNag can provide Swedish VAT refund services for your organization. Please contact your account representative for further information.