EU VAT REGISTRATION
VAT in SWEDEN
EU VAT registration in Sweden
Sweden introduced its value added tax system in 1969. It is called locally Mervärdesskatt (Moms).
The Swedish VAT Act 1994 contains basic rules on consumption tax. This is confirmed by statutory changes and decisions of the Advance Tax Council. The National Tax Council oversees the administration of Swedish VAT and develops guidelines, notices and memoranda.
As a member of the European Union, Sweden is required to incorporate the provisions of the EU VAT system contained in the EU VAT Directive. This includes detailed information on Swedish VAT registrations, compliance, returns and other related declarations.
VAT registration in Sweden for companies:
However, there are exceptions. In some situations, despite the fact that the location of the company or branch of the company is not located in Sweden, the company must register VAT. In relation to VAT, “foreign entrepreneur” is clearly defined as a commercial enterprise which is not established in Sweden and is not resident or normally resident in Sweden for natural persons. Registration for VAT is usually mandatory. In some circumstances, a foreign entrepreneur has the option of voluntarily registering for VAT, and thus taxing sales on which the buyer would otherwise be taxed. This mainly applies to the sale of goods, but in some cases also applies to the sale of real estate services located in Sweden. When selling to consumers in Sweden, VAT registration is always required. If you know that you need to register VAT in Austria, do not hesitate and contact us and we will help you.
When is VAT registration in Sweden required?
⇒ Distance selling to private individuals in Sweden from another EU country, e.g. online sales;
⇒ Organizing live events (conferences related to art or education);
⇒ If the Company is not registered as a VAT entity in Sweden but receives a service in Sweden according to the reverse charge rules.
Companies must check the necessity for VAT registration
If the annual value of distance sales to Sweden is less than CHF 320 000 = € 31 390 then VAT on domestic sales subject to taxation will be charged at the rate applicable in your country. You pay there too.
If you exceed the distance selling threshold, you should charge Swedish VAT on sales subject to VAT at the Swedish rate, instead of applying the rate in your country and including it in Sweden.
The registration date is the date when the total distance sales turnover threshold is exceeded. It is also the date from which you need to start adding Swedish VAT to sales./span>
The application for VAT registration is submitted on the SKV 4632 form.
What documents do we need to register VAT?
In order to register a foreign company for the purposes of Swedish VAT, we need the necessary documents to do so. These are usually documents such as:
⇒ Company founder’s certificate (not older than 3 months);
⇒ Copy of passport (only for sole proprietorships);
⇒ Power of attorney for a tax representative (if required);
⇒ Filled in appropriate form.
Do you have any questions about VAT registration in Sweden?
Do you have any questions about the Swedish VAT registration for your company? Not sure if your company must be registered for VAT in Sweden? If so, contact us via our contact form.
|Local VAT no.||SE + 12 characters|
|Mail order threshold||320.000 SEK = 31.390 €|
|Submission of VAT returns||– Monthly|
|Annual declaration||Yes, until February 26|
|Waiting time for registrations||Up to 2 months|
|Standard VAT rate||25.00%|
|Reduced VAT rate||12.00%, 6.00%|
|European Union Member State||yes, since 1995|