Legal & Regulatory

VAT

The national tax laws of each EU member are framed within certain parameters specified by the EU in the Sixth Council Directive 77/388/EEC (as amended) on the common system of VAT and the uniform basis for its assessment. Under this directive, a common VAT system is compulsory for all member states.

The European Union Law has important influence on Swedish Tax Laws. Sweden became a member of European Union in January 1, 1995 and while The Ministry of Finance and the Swedish Tax Administration independently administer the Swedish tax system, this administration happens in concert with European Union regulations.

In Sweden, the VAT is known as "moms" (short for mervärdesskatt). The standard VAT rate is 25 percent, the highest rate in the EU. VAT is a state sales tax that is levied on all increases in value throughout the production and distribution chain and reported to the tax authorities. E-commerce transactions in Sweden are taxed in the same way as regular purchases, with the VAT rates applied to digital goods and services.

Sweden has adopted the provisions of EU Directive 2002/38/EC on VAT on ecommerce. As such, non-EU businesses supplying software updates, electronic data, distant learning, online subscriptions, or other electronic services in Sweden, are subject to VAT in accordance with the location of the customer, not the supplier, as per the standing EU Directive.

GDP:

$514.5 billion

OECD Risk Score:

0

Ease of doing business index

10th

Household income

$50,514