The Government submits proposals for VAT to the Riksdag
The Government announced in the budget bill for 2022 that several taxes needed to be changed and is now moving forward with two of these proposals in bills to the Riksdag. This applies to an increased turnover limit for exemption from VAT and a further reduction in VAT on certain repairs.
Increased turnover limit for exemption from VAT
The government believes that it is important to simplify for the smallest companies. One way to do that is to give them an opportunity to be exempt from VAT. On 1 January 2017, rules were therefore introduced on a turnover limit for VAT exemption. The government is now proposing that the turnover limit be raised further so that companies with a turnover of no more than SEK 80,000 no longer need to be registered for and declare VAT. The proposed increase in the turnover limit means a simplification for even more smaller companies.
The proposal is proposed to enter into force on 1 July 2022.
Further reduced VAT on certain repairs
Since 1 January 2017, VAT has been levied on repairs of bicycles, shoes, leather goods, clothing and household linen with a reduced tax rate of 12 percent. The government is now proposing that VAT be further reduced from 12 percent to 6 percent for these services. The proposed reduction is made to strengthen the incentives in the VAT system to get more people to repair and change already manufactured goods instead of buying new ones.
The proposal is proposed to enter into force on 1 July 2022.
Source regeringen.se
