Sweden: Comprehensive VAT Country Guide (2026)

1. Country Overview
2. Local VAT Term
3. VAT Rates
   3.1 Standard Rate
   3.2 Reduced Rates (with examples)
   3.3 Zero-Rated & Exempt Supplies
   3.4 Recent & Upcoming Rate Changes
4. VAT Number Format
5. Registration Requirements
   5.1 Thresholds for Residents & Non-Residents
   5.2 Voluntary Registration
   5.3 EU OSS/IOSS Schemes
6. VAT Grouping Rules
7. VAT Recovery for Foreign Businesses
8. Fiscal Representative Requirements
9. Currency & Foreign Exchange (FX) Rules
10. VAT Law & Legal Framework
11. Tax Authorities
12. Scope of VAT
13. Time of Supply (Tax Point) Rules
    13.1 Goods
    13.2 Services
    13.3 Continuous Supplies
    13.4 Imports
    13.5 Goods on Approval/Return
14. VAT Invoicing Requirements
    14.1 Invoice Issuance & Deadlines
    14.2 Invoice Content Requirements
    14.3 E-Invoicing & Digital Signatures
    14.4 Simplified Invoices
    14.5 Self-Billing
    14.6 Record Keeping & Retention
    14.7 Invoice Corrections
15. Compliance and Deductions
    15.1 Right to Deduct Input VAT (and Key Exceptions)
    15.2 Call-Off Stock Arrangements
    15.3 Reverse Charge (Domestic & Cross-Border)
    15.4 Cash Discounts
    15.5 Bad Debt Relief
    15.6 Import VAT Deferment
    15.7 VAT Warehousing
    15.8 Supply-and-Install Transactions
    15.9 Use-and-Enjoyment Provisions
    15.10 Capital Goods Adjustment Period
16. VAT Recovery for Non-Residents
    16.1 EU (8th Directive) Refunds
    16.2 Non-EU (13th Directive) Refunds & Reciprocity
    16.3 Fiscal Rep for Refund Claims
17. VAT on Digital Services
18. Distance Selling Rules
    18.1 Distance Selling Thresholds
    18.2 OSS/IOSS Participation
19. Cash Accounting Scheme
20. VAT-Registered Cash Tills (POS Requirements)
21. Statute of Limitations
22. VAT Return Filing
    22.1 Filing Frequency & Methods
    22.2 Deadlines for Filing & Payment
    22.3 Handling VAT Credits & Refunds
    22.4 Correction of Errors
    22.5 Non-Resident Filing Specifics
23. Other Filings
    23.1 EU Sales List (EC Sales List)
    23.2 Intrastat Declarations
    23.3 Annual Returns
    23.4 Digital Reporting (SAF-T and others)
24. Penalties and Interest
    24.1 Late Filing Penalties
    24.2 Late Payment Interest
    24.3 Other Fines
25. Other Notable VAT Features

1. Country Overview

3. VAT Rates

• 12% Reduced Rate – The 12% VAT rate in Sweden is mainly applied to foodstuffs (including groceries and non-alcoholic beverages), meals in restaurants and catering services, and hotel/accommodation services. For example, basic groceries and food served in restaurants are taxed at 12% VAT. Hotel room charges, short-term lodging, and similar accommodation services also carry 12% VAT. Certain cultural services that were previously taxed at the standard rate have special treatment; for instance, starting July 2026, admission fees to some dance events will be reduced from 25% to 6% by an upcoming amendment (until then, such admissions remain at 25%). [taxually.com], [marosavat.com] [taxually.com] [vatcalc.com] [taxsummaries.pwc.com]
• 6% Reduced Rate – The 6% rate in Sweden is reserved for specific categories, often related to cultural and social goods and services. It covers print and digital publications like books, e-books, newspapers, and magazines. Passenger transport fares (domestic travel by bus, train, and other local transport) are taxed at 6%. Tickets to cultural events (e.g. theater or concerts) and admission to museums and certain sporting events are also 6% VAT. Additionally, some labor-intensive services have been subject to the 6% rate – for example, for a period, repair services for bicycles, shoes, leather goods, clothing, and household linen were taxed at 6% as a policy measure to encourage sustainable consumption. (Note: these repair services were temporarily reduced to 6% from July 2022 to March 2023 and subsequently reverted to 12% as of April 2023.) [taxually.com] [avalara.com] [vatcalc.com] [taxsummaries.pwc.com]

• Zero-Rated (0%) Supplies – These are taxable transactions where VAT is charged at 0%, allowing suppliers to deduct input VAT related to these sales. In Sweden, examples include exports of goods to outside the EU, intra-Community supplies of goods to VAT-registered buyers in other EU countries, qualifying international passenger transport services, certain supplies of prescription medicines (pharmaceuticals) to hospitals or pharmacies, sales of gold to central banks, supply of goods placed in a customs warehouse or VAT warehouse, and some services connected to imports/exports. These transactions are reported on the VAT return but taxed at 0%. [vatcalc.com], [avalara.com]
• Exempt Supplies – Exempt supplies are outside the scope of VAT charging, meaning no VAT is added on the sale and the supplier normally cannot reclaim the related input VAT. Major VAT-exempt sectors in Sweden include financial services (banking, insurance), healthcare and medical services (e.g. medical treatment and dental care), social welfare services, education (schools, certain training services), cultural services (many cultural and nonprofit activities), insurance, and the letting of real property (rentals of land or buildings). Passenger healthcare and dental care are exempt from VAT as well. Renting or sale of real estate is generally exempt, though landlords can opt to tax commercial property rentals in certain cases (charging VAT on rent to a tenant who is a VAT-registered business). Also, postal services and betting/lotteries are VAT-exempt, as in most EU countries. [vatcalc.com], [euvat.org] [skatteverket.se] [skatteverket.se], [euvat.org] [vatcalc.com]

• Temporary Cut for Food (2026–2027) – In response to rising food prices and inflation, the Swedish government announced a temporary reduction of VAT on most food items from 12% to 6%. This reduced food rate will apply from 1 April 2026 until 31 December 2027. (Alcoholic beverages and tap water are excluded from this temporary concession, and restaurant/catering services remain at 12% during that period.) Authorities plan to monitor retail pricing to ensure the VAT cut benefits consumers. [vatcalc.com], [vatcalc.com] [taxsummaries.pwc.com] [vatcalc.com]
• Intra-EU Digital Publications (2019) – Following EU rule changes, Sweden applied the 6% reduced rate to electronic publications (e-books, digital newspapers) in line with printed books/newspapers. This was enabled by an EU allowance to equalize VAT on print and digital reading materials. [vatcalc.com]
• Past Temporary Reduction for Repairs (2022–2023) – Sweden briefly reduced the VAT on certain repair services (bicycle, shoe, clothing repairs, etc.) from 12% to 6% between 1 July 2022 and 31 March 2023 as an environmental and consumer-friendly measure. After 31 March 2023, these services reverted to the standard 12% reduced rate. [taxsummaries.pwc.com]
• Upcoming Cultural Rate Change (2026) – As noted, admissions to defined dance events will shift from 25% to 6% VAT from 1 July 2026, aligning such events with other cultural and sporting events under the 6% rate. [taxsummaries.pwc.com]

4. VAT Number Format

5. Registration Requirements

6. VAT Grouping Rules

7. VAT Recovery for Foreign Businesses

• Through VAT Registration: If a foreign business makes taxable supplies in Sweden and registers for VAT (for example, via a local fiscal representative if required – see Section 8), it is treated like a domestic VAT payer. The company can charge Swedish VAT on its taxable sales and deduct input VAT on Swedish costs in its periodic VAT returns. This direct recovery via a local VAT return is available to foreign companies once registered, even if their customers are mainly B2B (where VAT may be reverse-charged – see Section 15.3). [vatcalc.com]
• Through VAT Refund (No Registration): If a foreign company incurs Swedish VAT but does not make local taxable sales (thus not required to register), it can claim a VAT refund via the EU 8th Directive or 13th Directive refund mechanisms (explained in detail in Section 16). In summary, EU-based businesses can use an electronic portal in their home country to claim Swedish VAT paid on business expenses. Non-EU businesses can submit a special application to the Swedish Tax Agency for VAT paid on Swedish purchases. These processes allow recovery of VAT on costs like travel expenses, trade fair costs, or local supplier invoices, provided the costs relate to taxable business activities. The refund route is subject to conditions (e.g. minimum claim amounts and deadlines) which are detailed later, and in some cases reciprocity (mutual refund arrangements between Sweden and the business’s home country) would be required for non-EU claimants – although Sweden does not currently mandate a reciprocity agreement for non-EU refunds. [vatcalc.com]

8. Fiscal Representative Requirements

9. Currency and FX Rules

10. VAT Law and Legal Framework

11. Tax Authorities

12. Scope of VAT

• Domestic Sales of Goods and Services: VAT is levied on goods delivered or services performed within Sweden’s territory by a business person. This includes sales by Swedish businesses and certain sales by foreign businesses (if they are not subject to reverse charge; see Section 15.3). Both B2B and B2C transactions in Sweden fall under the VAT system, though in B2B cases the tax is often accounted for by the customer under reverse charge when the supplier is foreign (domestic details in Section 15.3).
• Intra-Community Acquisition of Goods: When a Swedish business acquires goods from a supplier in another EU member state and the goods are shipped to Sweden, an “intra-Community acquisition” occurs. Such acquisitions are subject to Swedish VAT, usually accounted for by the Swedish buyer (reverse charged) on its VAT return. (Private individuals do not pay VAT on intra-EU purchases if the foreign seller charges its local VAT under distance sales rules, unless the seller is using OSS to charge Swedish VAT.) [vatcalc.com]
• Import of Goods: Goods imported into Sweden from outside the EU are subject to Swedish VAT (import VAT) at the time of importation. Import VAT is typically paid to Swedish Customs or accounted for via a deferment/postponed accounting scheme (see Section 15.6 for import VAT deferment). The importation of goods is thus within the scope of VAT, regardless of whether the importer is a business or private individual (with some personal exemptions for travelers). [vatcalc.com]
• Intra-EU Distance Sales to Consumers: As part of the EU’s e-commerce rules, distance sales of goods (online sales shipped from other EU countries to Swedish private customers) become subject to Swedish VAT once the seller exceeds the EU-wide threshold (see Section 18) or if the seller opts into the OSS system, thereby bringing those supplies into Swedish VAT scope. Similarly, digital services sold to Swedish consumers by foreign providers are taxed in Sweden (under the digital services rules, Section 17). [vatcalc.com]
• Self-Supplies and Other Transactions: Certain transactions without consideration can also be in scope – for example, self-supply of goods or services (when a business uses goods/services for private use or gives them away, VAT may apply as if it were a sale). Additionally, moving own goods into Sweden (e.g. transferring inventory from another EU country to Sweden) is treated as a taxable deemed supply in the original country and a corresponding acquisition in Sweden, under EU rules.
• Transactions Outside Scope: Some activities are outside the scope of VAT altogether. These include non-economic activities (e.g. non-business activities or purely private transactions), as well as true compensation payments or grants that are not consideration for a specific supply. Also outside scope are salaries and wages paid by an employer (not consideration for a supply of services) and certain other transfers of money that do not relate to a supply of goods/services.

13. Time of Supply Rules (Tax Point)

14. VAT Invoicing Requirements

• Invoice date (date of issuance) and a unique sequential invoice number.
• Supplier’s name, address, and VAT registration number.
• Customer’s name and address. If it’s a B2B supply to a Swedish or EU customer, the customer’s VAT number should be included (especially for cross-border EU supplies or when reverse charge applies). [vatcalc.com]
• Description of the goods or services supplied, including quantity or extent (e.g. hours of service).
• Date of the supply (if different from the invoice date, the date when goods were delivered or services completed).
• Chargeable amount per rate (net amount for the goods/services, excluding VAT).
• VAT rate(s) applied and the corresponding VAT amount for each rate, in SEK (with currency conversion if the invoice is in a foreign currency). [vatcalc.com]
• The total amount payable (including VAT).
• If any exemptions or zero rates apply, a reference or note explaining the reason for zero VAT (e.g. “Intra-Community supply – VAT 0%”).
• If a fiscal representative is used (for a foreign company), the rep’s name and VAT number should appear on the invoice. [vatcalc.com]
• In specific cases, other references may be needed (for example, if a reverse charge applies, it’s common to note “Reverse charge, buyer liable for VAT” on the invoice).

15. Compliance and Deductions

• Cross-Border B2B Supplies: In line with EU rules, if a foreign supplier (not established or VAT-registered in Sweden) supplies goods or services taxable in Sweden to a Swedish VAT-registered business, the reverse charge generally applies. This means the Swedish business customer must self-account for the VAT (both output and input VAT) on its VAT return, while the foreign supplier does not charge Swedish VAT. Example: A German company provides consulting services to a Swedish company – the Swedish company will reverse-charge Swedish VAT on the service fee (and simultaneously claim input VAT, if eligible), so the German supplier does not need a Swedish VAT number for that service. If a foreign supplier is VAT-registered in Sweden, they would normally charge Swedish VAT, but there is an option for the VAT-registered non-resident to still have the Swedish customer account for the VAT via reverse charge in most cases. [taxually.com] [vatcalc.com]
• Domestic Reverse Charge for Specific Sectors: To combat fraud, Sweden has extended the reverse charge to certain high-risk goods and services between Swedish businesses. In these cases, the Swedish buyer must account for the VAT instead of the seller. Current domestic reverse-charge applies to:
  • Construction and building services (when supplied to a business in the construction sector). [vatcalc.com]
  • Trading of certain emissions allowances (greenhouse gas emission permits) between businesses. [vatcalc.com]
  • Sales of scrap metal and waste recycling materials. [vatcalc.com]
  • Sales of investment gold (gold of certain purity is typically treated as an exempt or special case, but if taxable, often reverse-charged). [vatcalc.com]
  • Certain electronics (mobile phones, tablets, laptops, game consoles, integrated circuit devices) when sold B2B above a threshold (SEK 100,000) in a single invoice (this rule introduced in 2021 as an anti-fraud measure). [taxsummaries.pwc.com], [taxsummaries.pwc.com]
  Under these scenarios, the supplier issues an invoice without VAT, stating that reverse charge applies, and the recipient (if a taxable person) must report the output VAT on their VAT return. The recipient can simultaneously deduct this VAT as input tax if it relates to their taxable activities, so there is no net tax cost, but the mechanism helps prevent fraud. Businesses need to be diligent: if a supplier mistakenly charges VAT when reverse charge should have applied (e.g. for a large B2B electronics sale), the buyer cannot deduct that VAT – the tax would be considered incorrectly invoiced. [taxsummaries.pwc.com]

16. VAT Recovery for Non-Residents (Refund Schemes)

17. VAT on Digital Services

• Non-EU Suppliers of Digital Services: A non-EU business providing e-services to Swedish consumers is required to charge Swedish VAT. To avoid registering in every EU country, these businesses can use the Non-Union One Stop Shop (Non-Union OSS) scheme (previously the “MOSS” – Mini One Stop Shop). By registering for OSS in a single EU Member State, a non-EU supplier can report and pay the VAT due on all digital services to EU consumers via quarterly OSS returns. Sweden then receives its share of the VAT from that intermediary country. For example, a US software company selling apps to Swedish customers can register for OSS in an EU country, charge Swedish VAT to its Swedish customers, and remit that VAT through the OSS system without needing a direct Swedish VAT registration. [vatcalc.com]
• EU Suppliers of Digital Services: Swedish businesses selling digital services to consumers in other EU countries will charge VAT based on the customer’s member state (after the EU-wide €10,000 threshold for cross-border TBE services is exceeded). They can use the Union OSS scheme to report these cross-border B2C digital service supplies in one return. Conversely, if an EU business in another member state sells digital services to Swedish consumers, and if that business is in the OSS scheme, it will account for Swedish VAT via OSS. If not in OSS, it would be required to register in Sweden to account for Swedish VAT on those sales. [taxsummaries.pwc.com]
• B2B Digital Services: Supplies of electronic services between businesses (B2B) follow the general B2B “place of supply” rule – i.e. typically taxed where the customer is established via the reverse charge mechanism. So if, for instance, a Swedish business purchases cloud services from an overseas provider, the Swedish company must self-account for Swedish VAT under reverse charge (assuming the foreign provider isn’t registered in Sweden).

18. Distance Selling Rules

19. Cash Accounting Scheme

20. VAT-Registered Cash Tills (Point-of-Sale Requirements)

21. Statute of Limitations

22. VAT Return Filing

• Monthly returns are mandatory for businesses with annual turnover above SEK 40 million (this roughly corresponds to large enterprises). Businesses below that threshold may opt for monthly filing if they prefer more frequent reporting. [taxually.com]
• Quarterly returns are standard for companies with annual turnover between SEK 1 million and SEK 40 million. This covers many small and mid-sized companies. (They can choose monthly if desired, or if they approach the upper threshold the Tax Agency might require monthly filing.) [taxually.com]
• Annual returns are permitted for very small businesses with turnover under SEK 1 million per year. Such businesses only need to file one VAT return after the end of the year (though they can opt for more frequent filing if they want). [taxually.com]

• Monthly Filers: For large enterprises (turnover > SEK 40 million), the VAT return and payment are due by the 26th of the month following the reporting month (with a slight extension to December 27 for the November return, as Christmas affects the deadline). Smaller businesses that opt for monthly filing (turnover below 40 million) typically have a deadline of the 12th of the second month following the month (with extensions to the 17th of the month in January and August, due to holidays). In summary, a large company’s VAT for March would be due by April 26, whereas a smaller company filing monthly could have until May 12 to file/pay March’s VAT. [taxually.com] [skatteverket.se]
• Quarterly Filers: For those filing quarterly, the deadline is generally the 12th of the second month after the quarter ends. For example, Q1 (Jan–Mar) VAT returns are due by May 12. The August 17 extension also applies for the April–June quarter (due mid-August instead of August 12, as per current practice). Quarterlies are typically due in May, August, November, and February. (If filing on paper, deadlines might be a few days earlier, e.g. the 12th vs 17th of Aug, but electronic filing is standard.) [taxually.com] [skatteverket.se]
• Annual Filers: For businesses approved to file annually, the due date is generally the 26th of the second month following the end of the financial year (for calendar-year taxpayers, this means the VAT return and any payment for Jan–Dec are due by 26 February of the next year; if that date falls in December for non-calendar fiscal years, it shifts to 27th). However, if the annual VAT return is submitted together with the income tax return (applicable to certain small enterprises), the deadline may align with the income tax return (e.g. May 12 of the following year) under specific conditions. [skatteverket.se]

23. Other Filings

24. Penalties and Interest

25. Other Notable VAT Features

• Small Business VAT Exemption: As mentioned, Sweden allows small domestic businesses to stay outside the VAT system if their annual taxable turnover is below the SEK 120,000 threshold (or SEK 30,000 in earlier years). Qualifying businesses that do not register for VAT because their sales are below this limit do not charge VAT to their customers – effectively giving them a VAT exemption for small businesses. However, they also cannot deduct input VAT in that case. Businesses near the threshold must monitor their turnover; if they exceed SEK 120,000, a VAT registration becomes mandatory. This small business relief is intended to reduce administrative burdens on micro-businesses. [vatcalc.com], [vatcalc.com]
• Option to Tax on Real Estate: While renting and selling real property is exempt from VAT by default in Sweden, the law allows an option to tax certain property leases. Under this provision, a landlord can choose to charge VAT on rent for a commercial tenant (usually one who is VAT-registered and using the premises for taxable activities). Opting in makes the rent subject to 25% VAT, enabling the landlord to deduct VAT on related property expenses (which would otherwise be blocked by the exemption). This option must be applied for or notified to the Tax Agency. It’s often used in cases of renting office space to businesses so that the landlord can recover VAT on property maintenance, and the tenant can in turn deduct the VAT on rent. [skatteverket.se]
• Tourist VAT Refund Scheme: Non-EU visitors (tourists) can benefit from Sweden’s VAT refund scheme for purchases of goods that are exported in their personal luggage. If a non-EU traveler buys goods in Sweden for at least SEK 200 (per receipt) and exports those goods when leaving the EU, they can get a refund of the Swedish VAT paid, via approved refund operators. The scheme requires the goods to be shown at exit and relevant paperwork stamped. This is a common feature in EU countries, encouraging retail shopping by tourists. The refund applies only to goods taken out of the EU; no refund is available on services or car rentals, etc. [euvat.org]
• Taxation of Vouchers: Sweden follows EU rules distinguishing single-purpose vouchers (SPVs) and multi-purpose vouchers (MPVs) for VAT. SPVs (where the VAT rate and place of supply of the underlying good/service are known at issuance) are taxed upfront when the voucher is sold. MPVs (vouchers usable for different goods/services with different VAT outcomes) are not taxed on sale; VAT arises when the voucher is redeemed. These rules ensure proper timing of VAT on gift cards and similar instruments. [marosavat.com]
• Special Schemes: Sweden applies the standard Tour Operators’ Margin Scheme (TOMS) for travel agents/tour operators (in line with EU law), meaning travel service packages for consumers are taxed on the agent’s margin, and input VAT deduction is restricted for costs that directly benefit the traveler. Sweden also has no separate agricultural flat-rate scheme for farmers (it relies on standard VAT rules for most agricultural producers, aside from any applicable EU subsidies).
• High VAT Compliance and Low VAT Gap: Sweden historically enjoys one of the lowest “VAT gaps” (the difference between expected VAT revenue and actual collected revenue) in the EU, indicating high compliance levels. This is attributed to effective tax administration and a culture of compliance. Businesses operating in Sweden can expect diligent enforcement and should maintain good records and compliance with all the above requirements to avoid penalties.