VAT in Sweden – VAT rates in Sweden 2026

If you run a business and sell to Sweden, or are only considering entering this market, the topic of VAT very quickly stops being theoretical and begins to have a real impact on your prices, margins, and accounting methods. VAT in Sweden operates under EU rules, but it has its own specifics that are worth understanding well before issuing your first invoice or submitting your first return.

In this article you will find a calm, structured explanation of how VAT works in Sweden, what the rates are in different cases, and what obligations entrepreneurs must expect.

How does VAT in Sweden work in practice?

The Swedish VAT system is based on the same mechanism that applies throughout the European Union. Tax is added at every stage of economic turnover, but its real burden is borne by the final consumer. A company selling goods or services adds VAT to the price while simultaneously having the right to deduct VAT paid on purchases related to the business. Only the difference between output VAT and input VAT is paid to the tax office. From an entrepreneur’s perspective, this means Swedish VAT should not be a cost as long as sales and purchases are properly documented and the rates are applied correctly.

What is the VAT rate in Sweden in 2026?

If you are wondering what VAT in Sweden is, the answer is relatively simple. In 2026 three levels of taxation apply: a standard rate and two reduced rates. No changes in their levels have been announced, so the system remains stable. The most important and most commonly used is the standard rate of 25%. It covers the vast majority of goods and services available on the Swedish market.

VAT rate in Sweden 25% – the market standard

The 25% VAT rate in Sweden applies to almost all retail trade and a large part of services. It includes, among others, the sale of electronics, clothing, furniture, cars, spare parts, household appliances, as well as consulting, marketing, IT, and many construction services. In practice, a simple rule can be applied: if regulations do not clearly indicate that a given transaction qualifies for a reduced rate, 25% should be used. This is one of the higher standard VAT rates in Europe, which is why gross prices in Sweden can be noticeably higher than in many other EU countries.

VAT rates in Sweden 12% – food and accommodation services

The second taxation level is the 12% VAT rate. It is mainly intended for sectors related to food, catering, and tourism. It includes, among others, the sale of food products, meals in restaurants, catering, and hotel and accommodation services.
It is worth remembering that alcohol and tobacco products always remain subject to the 25% rate, even when sold in restaurants or hotels. For companies operating in these sectors, correct application of 12% directly affects price competitiveness.

VAT rates in Sweden 6% – culture, transport and media

The lowest rate is 6% and applies to areas considered socially important. It includes printed and electronic books, newspapers, magazines, tickets for cultural events, entry to museums, cinemas and theatres, as well as passenger transport. The purpose of this rate is to facilitate access to culture, education and public transport.

Is there a zero VAT rate in Sweden?

In certain situations a 0% rate applies, but this does not mean exemption from VAT. It mainly concerns intra-Community supplies of goods and exports outside the European Union. Such sales are taxed at 0% but still allow deduction of VAT on purchases. This is a very important distinction, especially in international trade.

When must you register for VAT in Sweden?

The obligation to register for VAT arises in Sweden in many cases, even at a relatively small scale of activity. This includes selling goods or services in Sweden, storing goods there, installation or assembly at the customer’s site, or distance selling to consumers. For foreign companies there is no classic exemption threshold, so registration is often required from the first transaction.

VAT OSS and sales to Sweden

Entrepreneurs selling B2C may use the VAT OSS procedure. Thanks to it, VAT due in different EU countries can be declared in one return submitted in the country of registration. This solution is particularly beneficial for online stores selling to many countries at once.

What does a Swedish VAT number look like?

The VAT number assigned in Sweden begins with the prefix SE followed by twelve digits. This number must appear on invoices and in correspondence with contractors.

How often are VAT returns submitted?

The frequency of returns depends on company size and turnover. Monthly or quarterly settlements are most common, and for the smallest entities annual reporting is also possible.

VAT deduction in Sweden

The right to deduct VAT exists when the purchase is related to taxable activity and documented with a proper invoice. Not all expenses give the right to deduction, especially those of a personal or representative nature. Therefore keeping documentation and proper classification of costs is crucial.

VAT in Sweden and invoicing

An invoice should clearly indicate the parties to the transaction, VAT numbers, issue date, description of goods or services, net price, applied VAT rate, tax amount and gross value. Formal errors may lead to deduction being challenged.

Why is it worth knowing Swedish VAT rules well?

Knowledge of taxation rules directly affects the company’s financial stability, tax security, and competitiveness. How much VAT is in Sweden, which rate applies to your product, and when you must register — these are pieces of information that truly determine business profitability. If you plan to expand sales in Sweden, treat VAT as part of your business strategy rather than an unpleasant obligation. Properly understood VAT in Sweden brings peace of mind, predictability, and allows you to focus on what matters most — business growth.