E-Commerce & B2C Services in Sweden
In recent years, the EU has undergone significant changes concerning E-commerce and the provision of goods and services. With the inception of the OSS (One-Stop-Shop), businesses can register in a single country to address all their VAT obligations across all EU member states, including Sweden.
Simultaneously, the services sector, particularly electronic services, is ever-evolving. As the digital realm rapidly grows, global governments are formulating fresh tax strategies to tap into the resultant revenue.
Delve into the intricacies of ecommerce and service supply in Sweden through our detailed guide.
E-commerce in Sweden
Place of supply of goods
According to Chapter 5 of the Swedish VAT Act, the usual place of supply for goods is where the products are located at the time of supply, provided that they are not being transferred. However, if the products are being transported, different rules apply.
Therefore, if goods are located in Sweden and do not need to be transported from Sweden for their supply, Sweden is considered the place of supply. Moreover, one of the crucial conditions for a transaction to be exempt from VAT in Sweden is that the supply occurs in Sweden.
The EU’s VAT reform, effective from July 1, 2021, affects e-commerce businesses involved in cross-border EU transactions or those importing goods from outside the EU. The newly introduced One-Stop-Shop (OSS) system allows these businesses to register for VAT and submit quarterly VAT returns in just one EU member state. Furthermore, for imported goods, the Import One-Stop-Shop (IOSS) has been established.
The OSS mechanism builds on the earlier Mini One-Stop Shop (MOSS) scheme, which was tailored for VAT on specific digital products within the EU. Both these systems were devised to streamline tax procedures, minimize businesses’ administrative tasks, and enhance tax revenue collection. Through the OSS, companies can register and declare their VAT in a single country, regardless of serving multiple countries’ clientele. The unified OSS threshold across the EU stands at EUR 10,000 or SEK 66,980, eliminating the need to monitor different distance selling limits in each nation.
While the OSS caters to EU businesses selling to EU consumers, the IOSS is geared towards non-EU businesses that sell products valued at up to EUR 150 to EU clientele. In these instances, standard VAT import rules are applicable.
GVC can help you with your OSS/IOSS requirements visit dedicated OSS/IOSS page for more information about our services.
Selling in Sweden?
Digital services in Sweden
Any product that is stored, transported, and used in an electronic format is referred to as a digital product. These are items or services that a consumer obtains via email, Internet download, or website login. In order to sell your digital products in any other EU member state – including Sweden – you must first register with the One-Stop Shop (OSS).
The VAT One Stop Shop (OSS) is an optional arrangement that allows you to account for VAT in one EU country. You may be eligible if you provide cross-border telecommunications, broadcasting, or digital services to a non-taxable person.
Among the OSS services are:
- Website hosting
- Supply of software
- Access to databases
- Downloading apps or music
- Online gaming
- Distance teaching
- Accommodation services carried out by non-established persons
- Admission to cultural, artistic, sporting, scientific, educational, entertainment events, fairs & exhibitions
The OSS eliminates the need for you to register with tax authorities in each EU country where you sell. Instead, you can register for VAT, file VAT returns, and make payments in a single location under the OSS framework. You must apply the rules of the OSS scheme to all your clients in all the EU nations to which you provide services or products.
Currently, there are two schemes in operation under OSS:
- The Union Scheme – which is available to enterprises that have been formed in the EU or that have at least one branch in an EU country.
- The Non-union Scheme – which is Intended for enterprises that have not been created in the EU and do not have any branches in the EU.
Last Updated: 18/09/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
