sweden-flag
Summary

Standard VAT rate: 25%
E-Invoicing: mandatory in B2G, permitted but still not mandatory in B2C and B2B
Reporting type: SIE standard
Digital service tax: no

Compliance and rates

 

VAT number format

All EU member states have a fixed format for their VAT numbers. In Sweden, it includes 12 numbers (of which the last two are most often 01) and the prefix SE (i.e. SE999999999901).

 

VAT rates

The standard VAT rate in Sweden is 25%, with reduced rates of 12% and 6% on certain goods and services.

25% (Standard) – Applies to all taxable supplies, with certain exceptions

12% (Reduced) – Some foodstuffs, hotels and artists’ own sales of works of art

6% (Reduced) – Newspapers, magazines, books, passenger transport, concerts

0% (Zero) – intra-community and international transport

 

VAT payments and returns

All business with Swedish VAT number must submit periodic VAT reports. When establishing a company in Sweden, companies must specify how often they want to report VAT.

VAT Returns frequency

For all companies that operate in Sweden, VAT reports must be submitted on a monthly, quarterly or annually basis, depending on the annual turnover of the company.

  • Small companies with a turnover of less than SEK 1,000,000 (EUR 90,000) may choose to report VAT once a year, quarterly or monthly.
  • Medium companies with a turnover of between SEK 1,000,000 (EUR 90,000) and SEK 40,000,000 (EUR 3,600,000) may choose to report VAT quarterly of monthly.
  • Large companies with a turnover of more than SEK 40,000,000 (EUR 3,600,000) must report VAT once a month.
Penalties in case of late filings or misdeclarations

Late registration can trigger a penalty of SEK 6,250 with additional fees up to SEK 18,750 in case of non-submission of the VAT return within 5 months from the filing deadline.

If the taxpayer has omitted information or provides false information on the return, the taxpayer can be penalized with a surcharge equal to 40% of the tax due.

Invoice requirements

VAT invoices issued in Sweden must contain the following elements:

  • date of issuance
  • a unique, sequential number of the invoice
  • supplier / issuer data (company name, address, VAT number)
  • customer data (address, VAT number if the buyer is liable for tax on the purchase)
  • full description of goods and services provided (scope and nature)
  • date of delivery (date of the deal completion)
  • payment date (if the payment date is different from the invoice date)
  • net price per unit (excl. VAT)
  • any discounts if applicable
  • rate and amount of VAT applicable for the category of goods and services provided
  • amount of the VAT
  • the invoice total (incl. VAT)

 

E-Invoicing

From 2019, all suppliers billing the Government (B2G) are obligated to submit their invoices electronically according to EN 16931, PEPPOL BIS Billing 3.0.

For B2B and B2C transactions, issuance of invoices electronically is permitted, but still not mandatory.

 

SIE standard for reporting

Most of the businesses in Sweden use the SIE standard for transferring accounting data to authorities.

Very similar to SAF-T, the SIE format is an open standard for transferring accounting data between different software produced by different software suppliers. The format is open to everyone, but only SIE members can get their software approved.

Turnkey invoice compliance.

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