The Four VAT Handling Modes
Standard VAT
Standard VAT is the default mode for domestic invoicing in Sweden. You charge VAT on your services and remit it to Skatteverket (the Swedish Tax Agency). Swedish VAT rates:| Rate | Applies To |
|---|---|
| 25% | Most goods and services, including consulting, software development, design, and professional services |
| 12% | Food and beverages, hotel accommodation, restaurant services |
| 6% | Books, newspapers, public transport, cultural events, sporting events |
Reverse Charge
Reverse Charge (omvänd skattskyldighet) shifts the responsibility for reporting VAT from the seller to the buyer. When you invoice with Reverse Charge:- You do not charge VAT on the invoice.
- The invoice total is the net amount only.
- The buyer is responsible for reporting and paying the VAT in their country.
- EU B2B services — when you sell services to a VAT-registered business in another EU country.
- Domestic construction — certain construction services in Sweden use domestic reverse charge rules.
VAT Exempt
Some services are exempt from VAT entirely. When you invoice with VAT Exempt handling:- No VAT is charged.
- The invoice shows only the net amount.
- Healthcare and medical services
- Educational services
- Financial services (banking, insurance)
- Social welfare services
Intra-EU Supply
Intra-EU handling is used for cross-border supplies of goods within the EU. This is distinct from Reverse Charge (which covers services) and applies specific EU trade rules. When invoicing with Intra-EU handling:- VAT is not charged on the invoice.
- Both your Swedish VAT number and the buyer’s EU VAT number must appear on the invoice.
- The transaction must be reported in your EC Sales List (periodisk sammanställning) to Skatteverket.
Setting VAT on Your Invoices
Choosing the Mode
When creating or editing a draft invoice, select the VAT handling mode from the dropdown. The mode applies to the entire invoice and determines how VAT is calculated and displayed. Choosing the correct mode depends on:- Where your client is located — domestic (Sweden), EU, or outside EU.
- Whether the client is VAT-registered — B2B vs. B2C matters for EU transactions.
- What type of service you provide — some services have special rules.
Setting VAT Rates Per Row
For Standard VAT invoices, each line item has a VAT rate field. Set the appropriate rate (25%, 12%, or 6%) for each row based on the type of good or service. For Reverse Charge, VAT Exempt, and Intra-EU invoices, the VAT amount is zero on all rows.Reviewing the VAT Summary
The invoice summary shows:- Subtotal — sum of all line items excluding VAT.
- VAT breakdown — VAT amount grouped by rate (e.g., “VAT 25%: 5,000 SEK”).
- Total — grand total including VAT.
Self-Billing Invoices
A self-billing invoice (självfaktura) is a special arrangement where the buyer creates the invoice on behalf of the seller. This is common in:- Staffing and subcontracting relationships
- Situations where the buyer has better information about quantities delivered
- Ongoing service agreements with pre-agreed rates
VAT and Credit Notes
When you issue a credit note against an invoice, the VAT is also reversed. This means:- The VAT you reported on the original invoice is offset by the credit note.
- Your next VAT return will reflect the net VAT after the credit.
- The credit note clearly shows the reversed VAT amounts.
Common Mistakes to Avoid
- Charging VAT to an EU B2B client — if the client is VAT-registered in another EU country, you should typically use Reverse Charge for services.
- Using the wrong VAT rate — most professional services are 25%. Double-check if you are unsure.
- Missing regulatory text — Reverse Charge invoices must include “Omvänd skattskyldighet”. Aourly adds this automatically when you select the Reverse Charge mode.
- Not including VAT numbers — EU cross-border invoices require both your and the buyer’s VAT numbers.
Frequently Asked Questions
What VAT rate should I use for my consulting work? Most consulting, software development, design, and professional services in Sweden use the standard 25% rate. When should I use Reverse Charge? Use it for B2B services to VAT-registered businesses in other EU countries, and for certain domestic construction services. Can I mix VAT rates on one invoice? Yes. Each line item can have its own VAT rate. The invoice summary will show a breakdown by rate. What is a self-billing invoice? It is an invoice created by the buyer on behalf of the seller, based on a prior agreement between both parties. It is common in staffing relationships. I am not sure which VAT mode to use. What should I do? When in doubt, consult your accountant or contact Skatteverket. Using the wrong VAT handling can result in penalties.Self-billing invoices (självfaktura) are used when the buyer creates the invoice on behalf of the seller. This is common in certain contractor relationships.