Understanding VAT Rates in Sweden

If your business sells goods or services in Sweden, it is important to understand which VAT rate applies to your transactions.

Sweden applies several VAT rates depending on the type of goods or services supplied. The Swedish VAT system is administered by the Swedish Tax Agency (Skatteverket) and follows the general principles of EU VAT legislation. (Skatteverket)

Current Swedish VAT Rates

(Skatteverket)

Standard Rate – 25%

The standard Swedish VAT rate is 25% and applies to most goods and services sold in Sweden.

Examples include:

✅ Electronics

✅ Clothing and footwear

✅ Household goods

✅ Professional services

✅ Most business-to-consumer sales

This is the default rate unless a reduced rate or exemption specifically applies. (Skatteverket)

Reduced Rate – 12%

The 12% VAT rate applies to certain categories including:

🍽 Restaurant and catering services

🏨 Hotel accommodation

🏕 Camping accommodation

🥤 Certain non-alcoholic beverages

🍴 Some food products

The exact treatment can vary depending on how goods and services are supplied. For example, restaurant services and takeaway food may be treated differently in certain circumstances. (verksamt.se)

Reduced Rate – 6%

The 6% VAT rate applies to selected goods and services, including:

📚 Books and e-books

📰 Newspapers and magazines

🚆 Passenger transport

🎭 Admission to cultural events

🎵 Concerts and performances

⚽ Certain sporting events

This reduced rate is designed to support access to education, culture and public transport. (verksamt.se)

Zero-Rated and VAT Exempt Transactions

Certain transactions may be subject to a 0% VAT rate or VAT exemption.

Examples can include:

🌍 Exports of goods outside the EU

🚚 Certain intra-Community supplies

✈ Certain international transport services

🏥 Some healthcare services

🎓 Certain educational services

💳 Many financial and insurance services

The VAT treatment depends on the specific circumstances of the transaction. (Skatteverket)

Important Note About Food VAT

Sweden has announced a temporary reduction of VAT on many food products from 12% to 6% between 1 April 2026 and 31 December 2027.

However, restaurant services generally remain subject to the 12% VAT rate. Businesses should carefully review the applicable rules for their products and services. (Fiscal Portal)

Why Correct VAT Rates Matter

Applying the wrong VAT rate can result in:

❌ Underpaid VAT

❌ Overcharged customers

❌ Tax authority corrections

❌ Interest and penalties

Businesses should ensure their products are correctly categorised and that VAT settings on ecommerce platforms and accounting systems are regularly reviewed.

Need Help?

If you are unsure which Swedish VAT rate applies to your products or services, please contact your Account Manager or Registration Assistant.

Our VAT specialists can help review your activities and ensure the correct VAT treatment is applied.