Swedish VAT registration
Every European country is different, especially when it comes to legislation. Sweden VAT rules therefore differ from the rules in any other country. Let’s dive into the specifics of everything surrounding VAT in Sweden.
Swedish VAT rates
Sweden has three different rates for VAT. These are the following:
- 25% VAT as a general VAT rate in Sweden. It applies to most goods and services
- 12% VAT as the rate that is charged on food, hotels, and artist’s own sales of works of art
- 6% VAT rate applies to newspapers, magazines, books, concerts, and passenger transport (both public and private)
For international transport, the VAT rates are 0%, as agreed upon between EU countries. In the case of international transport, the rate of the country of destination is applied.
E-commerce figures in Sweden
Sweden has several e-commerce platforms on which the above described sales tax rates apply. The biggest e-commerce sellers in Sweden are:
Name Net sales
- netonnet.se 705 million euros
- elgiganten.se 497 million euros
- apotekhjartat.se 460 million euros
- apotea.se 457 million euros
- amazon.se 418 million euros
When do you need a Swedish VAT number?
If you offer taxable goods or services in Sweden, you may have to be registered locally. In the following cases, you will need a Swedish VAT registration:
- When you’re importing goods into Sweden;
- If you make intra-community sales (dispatches) or purchases (acquisitions) from other countries in the European Union;
- If you’re trading goods within Sweden;
- When you store your goods locally in Sweden;
- ‘Distance selling’ from someone on the internet to a consumer in Sweden (if you exceed 10.000 euro’s in sales, you can use the OSS registration);
- If you organize or run a live event in Sweden with paid admission.
One Stop Shop (OSS) registration for Sweden
From the first of July 2021, the EU adopted a continent-wide threshold for distance sales. While before every country had its own thresholds, the threshold is now the same for all EU countries: 10.000 euros. If your sales are below the threshold of 10.000 euros, you can apply the VAT rates of the country where your company is registered. However, you can still opt to use the VAT rate of the country of destination. If your total sales exceed this threshold, you can make use your One Stop Shop (OSS) registration. In this case, you are obliged to follow the VAT rates of the country of destination. This is also referred to as the destination principle.
Having an OSS registration will cover everything surrounding your sales tax in Sweden. However, it is not obligatory to have an OSS registration. All in all, you can make use of the following two options when it comes to VAT returns for Sweden:
- You register locally in Sweden, which means you should do so for every EU country you sell to.
- You register in your country of residence for the Union scheme of the OSS.
Requesting a Swedish VAT number for Amazon FBA
To sell successfully on Amazon, it’s best to set up stock locally. If you do so, it means that your customer will receive the product already the next day. If you make use of Fulfillment by Amazon (FBA), your products can be stored in their local warehouses. Since Amazon has a logistical center in Sweden, it is obligatory to have a local VAT number when making use of FBA. If you do not register (timely), your Amazon account will be blocked and your sales will be impeded.
VAT number format and duration in Sweden
It takes about a month to finish the whole process surrounding your VAT registration in Sweden. Also, Sweden VAT rules make that the country has its own fixed format for its VAT code. The format of the VAT code in Sweden includes 12 numbers and the prefix SE. The last two of the 12 numbers are normally 01. An example of a Swedish VAT code is something like SE121212121201.
How can you register for Swedish VAT number?
Would you like us to register a local VAT number for you? Our Staxxers in Sweden are happy to help you in any way possible.