VAT and Sales Tax in Sweden

Sweden levies mervardeskatt - universally abbreviated as moms - under the Mervardeskattelagen (ML, SFS 1994:200), which transposes EU VAT Directive 2006/112/EC. Skatteverket (the Swedish Tax Agency) administers the tax. Every VAT-registered business charges moms on taxable supplies, recovers input moms paid to suppliers, and remits the net difference to Skatteverket via the Skattedeklaration (tax return). Understanding the three-rate structure, the registration exemption, and the filing calendar is the starting point for any business operating in Sweden.

The Swedish moms system is well-integrated with the EU framework and generally straightforward for businesses already familiar with VAT in other EU member states. Non-EU businesses encounter different registration rules (no threshold; mandatory from first supply). Consult a qualified tax professional for advice tailored to your circumstances.

What are the three moms rates?

ML section 7 establishes three positive rates and a zero/exempt category. The 25% standard rate applies to all goods and services unless a reduced rate or exemption expressly applies - it is joint-highest in the EU alongside Hungary, Croatia, and Denmark. The 12% reduced rate covers hotel and short-term accommodation, camping pitches, restaurant and catering services (food and non-alcoholic beverages served at the table), and certain repairs. The 6% super-reduced rate covers books (print and e-books since 1 July 2019), newspapers and periodicals, passenger transport (domestic rail, bus, taxi), admission to cultural events (theatre, opera, cinema, concerts), and admission to sporting events. Zero-rated supplies include exports outside the EU and intra-EU goods supplies to a registered recipient; exempt supplies (no input-moms recovery) include healthcare, education, financial services, and residential property rental.

A significant rate change took effect 1 April 2026: most foodstuffs shifted temporarily from 12% to 6%, a measure running to 31 December 2027 per Swedish government budget legislation. Restaurant and catering services remain at 12%; alcohol remains at 25%. This means a supermarket selling packaged food now applies 6%, while a restaurant selling a prepared meal continues to apply 12% to the same ingredients. Businesses in the food supply chain should verify their exact rate position with a qualified tax professional given the category distinctions.

When is moms registration required?

A Swedish-resident business is exempt from moms registration - and cannot charge or recover moms - while its annual taxable turnover remains at or below SEK 120,000 (approximately EUR 10,500 at mid-2026 rates). This threshold was raised from SEK 80,000 on 1 January 2025 by SFS 2024:1232, transposing the EU cross-border small-business exemption under Article 280 of the VAT Directive. The threshold applies to the current calendar year and must not have been exceeded in either of the two preceding years.

Once turnover crosses SEK 120,000 in a calendar year, registration becomes mandatory from the transaction that causes the breach. Businesses may also register voluntarily below the threshold - for example, those with significant input-moms on capital expenditure or those supplying exclusively to VAT-registered B2B customers for whom charging moms is cash-flow neutral. The voluntary election is binding.

Foreign businesses (both EU and non-EU) have no registration threshold: they must register from their first taxable supply in Sweden. Non-EU businesses may be required to appoint a fiscal representative. The EU cross-border small-business exemption scheme (also effective 1 January 2025) allows businesses established elsewhere in the EU with total EU-wide turnover below EUR 100,000 to extend their home-member-state exemption to Swedish sales, avoiding Swedish registration for genuinely small cross-border operators.

What filing periods apply?

VAT-registered businesses file Skattedeklarationer on a turnover-based schedule under ML section 26:

All returns must be filed electronically via Skatteverket's e-service portal (Mina sidor). Net moms owed must be paid by the same deadline. A late-filing penalty of SEK 625 applies per missed declaration; interest accrues on underpayments. Businesses with large overpayments (input moms exceeding output moms, common for exporters) can apply for accelerated refunds; standard refund processing takes 30-60 days from return acceptance.

The Skattedeklaration also consolidates employer social charges (arbetsgivaravgifter) and preliminary income-tax withholding in a single combined return, reducing the number of separate submissions required.

How does the EU One Stop Shop work for Swedish sellers?

Swedish-resident businesses selling goods or digital services (electronically supplied services, telecommunications, broadcasting) to consumers in other EU member states must apply the destination country's VAT rate once their annual cross-border B2C turnover exceeds EUR 10,000. Rather than registering separately in every destination country, businesses may register for the EU One Stop Shop (OSS) via the Skatteverket portal. A single quarterly OSS return then covers all EU-wide B2C distance sales, with Skatteverket routing the VAT payments to the relevant member states.

Below the EUR 10,000 threshold (measured across all EU cross-border B2C supplies combined), the business may continue to charge Swedish moms at the applicable Swedish rate. Most businesses above the threshold choose OSS for its administrative simplicity. The Import One Stop Shop (IOSS) covers low-value imports from outside the EU (consignments up to EUR 150) under a parallel quarterly return.

Non-EU businesses without an EU establishment cannot use the EU OSS but may access the non-Union OSS by registering in any single EU member state; alternatively, they must register directly in Sweden from their first Swedish supply.

What is the VAT identification number format?

Sweden issues VAT identification numbers (UID-Nummer / momsregistreringsnummer) in the format SE + 12 digits, structured as the 10-digit Swedish organization number (organisationsnummer) followed by the suffix "01" - for example, SE556036079301 (Volvo). The number is searchable in the EU VIES (VAT Information Exchange System) at ec.europa.eu. Swedish businesses must display their UID-Nummer on all invoices; EU businesses receiving reverse-charge supplies from Sweden should verify counterparty registration via VIES before applying the zero-rate. Non-established businesses receive an SE-prefix number in the same format upon Skatteverket registration.

How does reverse charge (omvand skattskyldighet) operate?

Reverse charge shifts the moms-accounting obligation from supplier to recipient. Under ML section 5, reverse charge applies in three main domestic scenarios and one cross-border scenario:

Cross-border B2B services: when an overseas supplier provides services to a VAT-registered Swedish business, the Swedish recipient self-accounts the moms (output moms + input moms in the same return, cash-flow neutral for fully creditable supplies). The supplier issues a zero-rated invoice stating "Reverse charge - Article 196 VAT Directive." This is the standard EU B2B services rule.

Domestic construction services: the most significant domestic application. Since 2007, all sub-contractor-to-main-contractor construction services in Sweden are reverse-charged under ML section 5 kap 13, regardless of the sub-contractor's registration status. Covered activities include groundworks, structural construction, installations, finishing, and the hire of construction machinery with an operator. The main contractor self-accounts and recovers the moms in the same return. The rule was introduced to combat VAT fraud in the construction sector and applies whether the sub-contractor is Swedish or foreign.

Mobile phones and electronics: reverse charge applies between VAT-registered Swedish businesses for invoices exceeding SEK 100,000 covering mobile phones, tablets, laptops, gaming consoles, and integrated circuits. Unlike the construction rule, this applies only when the customer is already VAT-registered.

Scrap metal and emission rights: domestic reverse charge also applies to sales of scrap metal and emission-rights trading between taxable persons.

For the construction-sector rule specifically, international contractors new to Sweden frequently encounter compliance complexity - a sub-contractor invoicing zero-rated may still need to be registered in Sweden to issue a valid invoice and may need to verify the main contractor's VAT registration. A qualified tax professional should be consulted for any construction-sector work in Sweden.

See also the Sweden country overview for the broader Swedish tax framework, including corporate income tax, employer contributions, and personal income tax.