Sweden is a member nation of the European Union (EU), and therefore broadly follows the rules of the EU value added tax (VAT) directive. However, Sweden can set its own standard rate of VAT, provided it is above 15%. The current standard VAT rate in Sweden is 25%. There are also two reduced VAT rates of 12% and 6%.

The Swedish Tax Agency (Skatteverket) is responsible for the collection and administration of VAT in Sweden.

As of 2025, the VAT registration threshold in Sweden is SEK 120,000 (a rise from SEK 80,000). Businesses exceeding SEK 120,000 in annual taxable turnover must register for VAT.

There is no registration threshold for foreign businesses, which must register for VAT as soon as they start operating in Sweden.

Foreign businesses must also appoint a fiscal representative. The representative must be approved by the Swedish tax office and be established in Sweden.

Once a non-resident Swedish VAT registration has been received, businesses are obliged to follow local rules on VAT bookkeeping and rates. This includes:

• Disclosure requirements for invoices as outlined in the Swedish VAT Act

• Proper invoicing for goods or services in accordance with the Swedish time of supply VAT Act

• Use of electronic invoices, and approvals by customers

• Maintenance of accounts and records, which must be held for at least seven years

   

All registered businesses in Sweden must file VAT returns monthly, quarterly, or annually.

Businesses must file a VAT return monthly if their taxable turnover exceeds SEK 40 million over the previous 12 months, or is expected to exceed this threshold over the next 12 months. Businesses can file quarterly if their taxable turnover is below SEK 40 million. Businesses can file annually if their total taxable turnover does not exceed SEK 1 million.

The tax point (or time of supply rule) is when VAT becomes due on a transaction. In Sweden, the tax point arises when the goods are at the customer’s disposal or when the service is completed — unless the fee is paid before delivery or completion of service, in which case the tax point is when payment is received. The VAT is then payable to the Swedish tax authorities 10 days after the VAT reporting period end (monthly or quarterly).