INTERNATIONAL VAT GUIDE

  The default VAT rate for most digital services in Sweden is 25%.

  There are reduced rates of 6% for certain digital services like e-books and audiobooks.

  For cross-border B2C sales within the EU, VAT is charged at the rate of the consumer’s country.

  Sales to non-EU customers are typically exempt from Swedish VAT.

• Domestic Sales (B2B/B2C within Sweden): VAT registration is required if taxable turnover exceeds SEK 30,000 per year.
• EU Cross-Border Sales (B2C):
  • If annual sales of digital services to other EU countries exceed €10,000 (approx. SEK 110,000), VAT registration under the OSS scheme is required.
  • If sales are below the €10,000 threshold, VAT can be applied at the Swedish rate, and businesses can choose to register under OSS voluntarily.
• Non-EU Sales (B2C): No VAT applies, and no VAT registration is required in Sweden for sales of digital services to consumers outside the EU.
• B2B Sales (to businesses): No VAT charged, and the reverse charge mechanism applies for both EU and non-EU transactions, so VAT registration is not required unless you meet the general turnover threshold for Swedish VAT registration.

Important Considerations:

• Businesses must always monitor their turnover and sales across borders, especially if they are offering digital services to consumers in multiple countries.
• The OSS system simplifies VAT compliance for cross-border B2C sales within the EU, but businesses still need to ensure they meet the required thresholds.
• Even if the business is under the threshold for VAT registration, it may still voluntarily register for VAT to simplify tax reporting and compliance, especially for cross-border sales.

If you are unsure whether you need to register or how the rules apply to your specific business activities, it’s always advisable to consult with a tax professional or contact the Swedish Tax Agency (Skatteverket) for tailored guidance.

• No VAT is charged by the Swedish business on the sale.
• The buyer (business) is responsible for accounting for VAT in their own country, either under the reverse charge mechanism (EU) or as an export (non-EU).

Make sure you verify the buyer’s VAT registration number for EU transactions to ensure the reverse charge is applied correctly and to avoid any issues with VAT reporting.