VAT

Last updated: 2021-08-20

VAT is another word for Value Added Tax. It is a tax that everyone pays when they buy goods or services.

When businesses sell a good or service they add output VAT, and when they buy a good or service they pay input VAT. Companies can offset input VAT against output VAT, which means that VAT is not a cost for the company.

Most companies are obliged to report and pay VAT to the Swedish Tax Agency. They report both input and output VAT, where the difference determines how much they must pay in or get back.

Report and pay VAT

How often the VAT is reported and paid in depends on the VAT reporting period you have chosen.

The date on which the VAT must be declared and paid is determined by the Swedish Tax Agency. What is important to remember is that VAT is declared two calendar months after the period covered by the declaration has ended.