What Is VAT?
VAT is a tax on the value added at each step of a supply chain. When you sell a service to a client, you charge VAT on top of your fee. You then pay that VAT to Skatteverket. At the same time, you can deduct the VAT you paid on your own business purchases. The difference is what you owe (or are owed). Simple example: You charge a client 10,000 SEK + 25% VAT = 12,500 SEK. You also bought software for 1,000 SEK + 250 SEK VAT. You pay Skatteverket: 2,500 - 250 = 2,250 SEK.Swedish VAT Rates
Sweden has four VAT rates:| Rate | Applies to | Examples |
|---|---|---|
| 25% | Standard rate — most goods and services | Consulting, software development, design, most products |
| 12% | Reduced rate | Food and beverages, hotel accommodation, camping |
| 6% | Lower reduced rate | Books, newspapers, cultural events, passenger transport |
| 0% | Zero rate | Exports outside the EU, certain financial and insurance services |
Source: Skatteverket and the Mervärdesskattelagen (ML 2023:200).Most freelancers in the tech, consulting, and creative industries charge the standard 25% rate.
VAT Registration (Momsregistrering)
When You Must Register
You must register for VAT with Skatteverket if you sell taxable goods or services. Registration is done through Skatteverket, typically at the same time you register your business for F-skatt.VAT Exemption Threshold (Momsbefrielse)
Starting in 2025, Sweden introduced a VAT exemption scheme aligned with the EU small business directive. Businesses with an annual turnover under 80,000 SEK can apply for VAT exemption (momsbefrielse). This means:- You do not charge VAT on your sales
- You do not file VAT returns
- You cannot deduct input VAT on your purchases
Source: The threshold was introduced following EU Council Directive 2020/285 amending the VAT Directive.
Your VAT Number
Once registered, your VAT number (momsregistreringsnummer) follows this format: SE + your organization number (without hyphen) + 01 Example: Organization number 559123-4567 becomes VAT number SE5591234567 01.VAT Reporting
How often you report VAT depends on your annual turnover:| Annual Turnover | Reporting Period |
|---|---|
| Over 40 million SEK | Monthly |
| Over 1 million SEK | Quarterly |
| Under 1 million SEK | Yearly (or quarterly by choice) |
Input VAT vs. Output VAT
Understanding the difference between input and output VAT is essential:Output VAT (Utgående moms)
The VAT you charge your clients on your sales. This is money you collect on behalf of Skatteverket.Input VAT (Ingående moms)
The VAT you pay on business purchases. This is money you can reclaim from Skatteverket.The Calculation
| Amount | VAT | |
|---|---|---|
| Revenue (invoices sent) | 100,000 SEK | 25,000 SEK (output) |
| Software subscriptions | 4,000 SEK | 1,000 SEK (input) |
| Office supplies | 2,000 SEK | 500 SEK (input) |
| Computer purchase | 12,000 SEK | 3,000 SEK (input) |
| VAT to pay Skatteverket | 20,500 SEK |
Mixed VAT Rates
If you sell goods or services that fall under different VAT rates, you must report them separately in your VAT return. For example, if you are a freelance journalist who both writes articles (25%) and publishes books (6%), each rate must be tracked and reported independently. Your invoices must clearly show which items are subject to which rate, with separate VAT lines for each.When You Do NOT Charge VAT
There are several situations where you invoice without VAT:1. Exports Outside the EU
Sales of goods and services to buyers outside the EU are zero-rated. You invoice without VAT but still report the sale in your VAT return.2. Reverse Charge (Omvänd skattskyldighet)
When selling services to a VAT-registered business in another EU country, the buyer handles the VAT. See the Reverse Charge VAT article for details.3. VAT-Exempt Services
Certain services are exempt from VAT entirely, including:- Healthcare and dental care
- Education (under certain conditions)
- Financial services and insurance
- Rental of residential property
4. Below the Threshold
If you have been granted momsbefrielse (turnover under 80,000 SEK), you do not charge VAT.Practical Tips for Managing VAT
- Track VAT from day one. Even if you report yearly, record the VAT on every invoice and receipt as it happens.
- Keep all receipts. You can only deduct input VAT if you have a valid receipt or invoice showing the VAT amount.
- Separate business and personal expenses. Only business purchases qualify for VAT deduction.
- File on time. Late VAT returns can result in penalty fees (förseningsavgift) from Skatteverket.
- Use accounting software. Connecting Aourly to an accounting platform like Fortnox or Visma automates much of the VAT tracking and reporting.
Summary
- VAT (moms) is a consumption tax you charge on sales and can deduct on business purchases
- The standard Swedish rate is 25%; reduced rates of 12% and 6% apply to specific goods/services
- You must register for VAT if you sell taxable goods/services above the 80,000 SEK threshold
- VAT to pay = Output VAT (what you charge) minus Input VAT (what you pay)
- Report VAT monthly, quarterly, or yearly depending on your turnover
- Always keep receipts to support your input VAT deductions
Even if you’re below the 80,000 SEK threshold, you can voluntarily register for VAT to deduct input VAT on business purchases.
Frequently Asked Questions
Do I need to register for VAT?
Do I need to register for VAT?
If you sell taxable goods or services and your annual turnover exceeds 80,000 SEK, you must register. Below that threshold, you can apply for the VAT exemption scheme (momsbefrielse) introduced in 2025.
Can I deduct VAT on purchases I made before registering?
Can I deduct VAT on purchases I made before registering?
In some cases, yes. You may be able to deduct input VAT on purchases made up to 6 months before your VAT registration date. Consult Skatteverket for the specific rules.
What happens if I charge the wrong VAT rate?
What happens if I charge the wrong VAT rate?
You must issue a credit note for the incorrect invoice and create a new one with the correct VAT rate. You are responsible for paying the correct VAT to Skatteverket regardless of what you charged.