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This information is for general guidance only. Regulations may change. Always consult Skatteverket or a certified accountant for advice specific to your situation.
Reverse charge is a VAT mechanism where the buyer, not the seller, accounts for and reports VAT. Instead of adding moms to your invoice, the buyer handles VAT in their own tax return. Understanding when reverse charge applies is essential if you work with clients in other EU countries or in the Swedish construction industry.

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What is Reverse Charge?

In a normal transaction, the seller charges VAT, collects it from the buyer, and pays it to Skatteverket. With reverse charge, the seller invoices without VAT and the buyer reports both output and input VAT in their own VAT return. This shifts the tax reporting obligation from the seller to the buyer.

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When Does Reverse Charge Apply?

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1. EU Cross-Border Services (B2B)

This is the most common scenario for freelancers. When you sell services to a VAT-registered business in another EU country, reverse charge applies under the main rule for services (huvudregeln). Requirements:
  • The buyer must be a business (not a private individual)
  • The buyer must be VAT-registered in another EU country
  • The service must be covered by the main rule (most consulting, IT, design, and professional services are)
Example: A Swedish freelance developer invoices a German company for 10,000 EUR in consulting services. The invoice shows 0% VAT with the note “Reverse charge, Article 196 Council Directive 2006/112/EC”. The German company reports the VAT in their German tax return.

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2. Swedish Construction Services (Byggtjänster)

Domestic reverse charge applies in the Swedish construction industry when the buyer is a construction company or regularly purchases construction services. This was introduced to combat VAT fraud in the construction sector.

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3. Other Specific Cases

Reverse charge also applies to:
  • Scrap metal and recyclable waste
  • Emission allowances (utsläppsrätter)
  • Mobile phones and tablets sold in large quantities (over 100,000 SEK per transaction)

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Invoice Requirements for Reverse Charge

Your invoice must include:
  1. Both VAT numbers — your Swedish VAT number (SE + org number + 01) and the buyer’s VAT number
  2. No VAT amount — the invoice total should be the net amount only
  3. Reverse charge notation — clearly state one of:
    • “Reverse charge”
    • “Omvänd skattskyldighet”
    • Reference to Article 196 of the EU VAT Directive
  4. All standard invoice fields — seller/buyer details, invoice number, date, description of services, etc.

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Verifying the Buyer’s VAT Number

Before applying reverse charge, always verify the buyer’s VAT number using the EU VIES system:
Warning: If you cannot verify the buyer’s VAT number, you must charge Swedish VAT. Applying reverse charge with an invalid VAT number can lead to you being held liable for the VAT.

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Reporting in Your Momsdeklaration

Even though you don’t charge VAT, you must report reverse charge sales in your Swedish VAT return:
  • Ruta 39 — Försäljning av tjänster till andra EU-länder (Sale of services to other EU countries)
  • The amount is reported but not included in your taxable turnover
  • You do not report any output VAT for these transactions

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Reverse Charge in Aourly

When creating an invoice in Aourly:
  1. Select “Reverse Charge” as the VAT handling mode
  2. Aourly automatically sets VAT to 0% on all invoice rows
  3. The invoice PDF includes the required reverse charge notation
  4. Both your and the buyer’s VAT numbers are displayed on the invoice
Tip: Make sure your client’s VAT number is entered in their client profile in Aourly before creating a reverse charge invoice.

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Common Mistakes to Avoid

MistakeConsequence
Not verifying the buyer’s VAT numberYou may be liable for the VAT
Applying reverse charge to B2C salesVAT must be charged on sales to private individuals
Forgetting to report in momsdeklarationRisk of fines from Skatteverket
Missing reverse charge notation on invoiceInvoice may not meet legal requirements

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FAQ

Does reverse charge apply to all EU sales? No. It generally applies to B2B services where the buyer is VAT-registered in another EU country. For goods, different rules apply (intra-community supply). For B2C sales, reverse charge does not apply. What if I forget to apply reverse charge? If you charge Swedish VAT on a transaction that should have been reverse charge, issue a credit note and create a new correct invoice. Your client cannot deduct Swedish VAT in their country. Do I need to report reverse charge in my momsdeklaration? Yes. Sales with reverse charge to other EU countries are reported in ruta 39. The amount is not included in your taxable turnover but must still be declared.
Source: Skatteverket, EU VAT Directive 2006/112/EC, Mervärdesskattelagen (ML 2023:200)
Always verify your client’s VAT number through VIES before applying reverse charge. If the number is invalid, you must charge Swedish VAT.
Reverse charge only applies to B2B transactions. If you sell to a private individual in another EU country, normal VAT rules apply.
Sources: Skatteverket - Omvänd skattskyldighet, EU VAT Directive 2006/112/EC, Mervärdesskattelagen (ML)