How to Calculate Swedish VAT (Moms)

Sweden's Value Added Tax (VAT), known locally as "Mervärdesskatt" or "Moms," is a consumption tax applied to most goods and services. The standard rate is 25%, with reduced rates of 12% and 6% for specific categories. Sweden adopted VAT in 1968 and harmonized its system with EU rules when joining the EU in 1995. VAT is administered by the Swedish Tax Agency (Skatteverket).

Adding VAT to a Price

When you need to add VAT (moms) to a VAT-exclusive price, use these formulas:

Example for 25% standard rate: If the base price is kr 1,000 (excluding VAT):

VAT Amount = kr 1,000 × 0.25 = kr 250.00

Total Price = kr 1,000 + kr 250 = kr 1,250.00

Example for 12% reduced rate: If the base price is kr 1,000 (excluding VAT):

VAT Amount = kr 1,000 × 0.12 = kr 120.00

Total Price = kr 1,000 + kr 120 = kr 1,120.00

Example for 6% reduced rate: If the base price is kr 1,000 (excluding VAT):

VAT Amount = kr 1,000 × 0.06 = kr 60.00

Total Price = kr 1,000 + kr 60 = kr 1,060.00

Removing VAT from a Price

When you need to calculate the VAT-exclusive price from a VAT-inclusive price, use these formulas:

Example for 25% standard rate: If the total price is kr 1,250 (including VAT):

Base Price = kr 1,250 ÷ 1.25 = kr 1,000.00

VAT Amount = kr 1,250 - kr 1,000 = kr 250.00

Understanding Sweden's VAT System

What is Moms (VAT)?

Moms (Mervärdesskatt) is Sweden's value-added tax. It's a consumption tax collected at each stage of the supply chain, with the final burden falling on the consumer. Sweden's VAT system is harmonized with EU VAT rules. Businesses can claim input tax credits for VAT paid on business-related purchases, ensuring tax is not duplicated through the supply chain.

The Three Swedish VAT Rates

Standard Rate (25%): Applies to most goods and services including electronics, clothing, motor vehicles, alcohol, tobacco, and professional services.

Reduced Rate (12%): Applies to specific items including:

• Hotel accommodation and overnight lodging
• Labour-intensive supplies and services
• Restaurant and catering services
• Basic foodstuffs and non-alcoholic beverages (current rate; to be 6% April-December 2027)

Reduced Rate (6%): Applies to essential items including:

• Newspapers and magazines
• Books and e-books
• Cultural and sporting event entrance fees
• Passenger transport (buses, trains, flights)
• Copyright materials

VAT Registration Requirements

Threshold (as of 2025): Businesses must register for VAT if their annual taxable turnover exceeds SEK 120,000.

Specific registration requirements include:

• Mandatory registration if turnover exceeds SEK 120,000
• Non-residents must register regardless of turnover
• Intra-community acquisitions trigger registration at SEK 90,000
• Digital services and goods (OSS): SEK 99,680 threshold
• Voluntary registration is available for businesses below the threshold

VAT Filing and Reporting

Businesses register with the Swedish Tax Agency (Skatteverket) and must file VAT returns based on their turnover:

• Quarterly: Most businesses file quarterly VAT returns
• Monthly: Businesses with turnover exceeding SEK 40 million per year must file monthly
• Annually: Businesses with turnover below SEK 1 million may file annual returns

All VAT returns must be filed electronically through the Swedish Tax Agency. Filing deadlines are strict, and late payment or non-filing can result in significant penalties.

VAT-Exempt and Zero-Rated Supplies

Zero-Rated Supplies (0% VAT)

Zero-rated supplies have 0% VAT but allow input tax credits:

• Pharmaceuticals and medications
• Central bank gold
• Sea vessels
• Aircraft fuel and aviation supplies
• Exports of goods and services
• Intra-community supplies (goods shipped to other EU countries)
• Goods under customs warehousing
• Import services in certain cases

Exempt Supplies (No VAT, No Input Credit)

Exempt supplies are not subject to VAT and businesses cannot claim input tax credits:

• Education Services: Educational training provided by approved institutions
• Financial Services: Banking, insurance, investment, and money lending services
• Healthcare: Medical and dental services, hospital services
• Property: Sale and lease of residential property (limited exceptions)
• Postal Services: Universal postal services
• Betting and Gaming: Gambling, betting, and lottery services
• Social Welfare: Social welfare and child care services
• Transfer of Business: Sales of business entities

Items Subject to 12% Reduced Rate

The 12% rate applies to:

• Hotel accommodation (overnight stays)
• Restaurant and catering services (dining in)
• Labour-intensive services (hairdressing, cleaning, repairs)
• Basic foodstuffs and non-alcoholic beverages (until March 2026 and April-Dec 2027)

Items Subject to 6% Reduced Rate

The 6% rate applies to:

• Newspapers and magazines (printed publications)
• Books and printed literature
• E-books and e-publications
• Cultural services (concert, theatre tickets)
• Sporting event admission
• Passenger transport (bus, train, flight within Sweden)

Sweden VAT Quick Reference

Frequently Asked Questions (FAQ)