Electronic Filing

Each VAT registered person, regardless of whether they are established within or outside Sweden, is generally required to file their VAT returns electronically. The electronic filing is carried out through the Swedish electronic portal designated for VAT returns.

Interest and Penalties

Interest

Sweden has two different interest rates for underpaid VAT:

• Low rate (1.25%and above) being charged initially and
• High rate (16.25% and above) being charged after the due date has passed

The tax authorities may offer a reduction in the interest rate in certain circumstances.

Penalties

If a business in Sweden fails to comply with its VAT obligations, such as submitting incorrect returns, penalties may be imposed by the Swedish Tax Agency. These penalties can be as high as 20% of the underpaid VAT or over-recovered input VAT. However, penalties may be reduced depending on the circumstances, such as if the compliance failure is voluntarily disclosed before the Tax Agency begins its investigation or if extenuating circumstances, such as illness, resulted in incorrect information being submitted.

When errors occur in the VAT return, the Tax Agency has the burden of proof in applying penalties. According to a statement by the Swedish Tax Agency in May 2016, taxpayers may be eligible for partial penalty exemptions if the incorrect information in the tax returns is also reflected in data submitted to the VAT Information Exchange System (VIES), which is used for EU sales lists (as discussed in Section 10.3.2). If incorrect information is present in the VIES and has been available to the Tax Agency for up to a year after the end of the relevant tax year, then partial penalty relief may generally be granted.

VAT Recovery in Sweden

The Swedish VAT Act provides a VAT recovery scheme wherein taxable persons can reduce the VAT liability by claiming an “input VAT”. Input VAT is the VAT paid on certain purchases for business purposes. VAT is recoverable on taxable acquisitions of the business and it may be subject to standard, reduced rates or be exempt (zero-rated). There are certain conditions applied. 

To recover input VAT, taxable persons must have all required documentation, including invoices with complete information. 

 Among the types of input tax are: 

• VAT charged on goods and services supplied in Sweden. 
• VAT paid on imports of goods 
• VAT self-assessed on intra-Community acquisitions of goods and reverse-charge services. 

 Restrictions 

Exempt supplies and irrecoverable expenses are not considered as input VAT. 

 Mixed Business 

If a business is engaged in both taxable and exempt supply goods and services, a partial deduction also applies. Only deduct the taxable portion of input VAT. 

Deadline for refund claims: 

• EU – 30 September of the year following the year in which the invoice was received by the claimant. 
• Non-EU – 30 June of the year following the year in which the invoice was received by the claimant. 

Filing Procedures: 

EU and Non-EU registered in Sweden 

• Businesses in the EU must electronically file refund claims through the electronic portal set up by the Member State in which the business is established. The application will be then transferred to the Swedish Tax Agency. 
• It must not be established in the Member State of refund. 
• It must not have a fixed establishment, seat of economic activity, place of business or other residence in the Member State of refund. 
• The claimant must not have made any supplies of goods or services in the Member State from which the refund is claimed (subject to certain exceptions) during the refund period. 
• A claim must be worth at least SEK 4,000, and annual claims must be worth at least SEK 500. The refund will be in Swedish Kronor (SEK). 
• Invoices are not required unless requested by the Swedish Tax Agency. The taxable and VAT amount must be stated in SEK. The authorities may inspect the original invoices or copies of them in certain instances.  
• The Swedish Tax Agency will email about the decision within four months of the claim date. However, if there is more information needed, the process may take longer. 

Non-EU not registered in Sweden 

• Non-EU and unregistered in Sweden businesses may claim VAT refund by using the appropriate forms which must be filed on paper. 
• Claims should be submitted in Swedish, English, French, or German. 
• The refund application must be supplemented with the necessary paperwork. 
• The claimant must provide a document certifying that he or she is registered as a taxable person with a tax identification number. Must be issued within twelve months. 
• All sums of money must be stated in Sweden’s local currency – Swedish Kronor (SEK). 
• A claim must be at least SEK 4,000 and annual claims must be at least SEK 500. The refund will also be sent in Swedish Kronor (SEK). 
• The Swedish Tax Agency will notify about the decision within six months from the day of receiving the complete application with all the supporting documents.  
• The Swedish Tax Agency will not provide any interest in the event of a delayed VAT refund. 
• Applications for Swedish VAT refunds by non-EU enterprises must be directed to the Swedish Tax authority’s address.

Last Updated: 15/09/2023

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