Under the Swedish Tax Agency's VAT rules, a self-employed artist cannot issue invoices without VAT through WorkNode or another umbrella-employment platform.
When invoicing as a self-employed artist through WorkNode, you must therefore add 25% VAT.
What rules apply?
For artistic services such as performances, the Swedish Tax Agency considers WorkNode and other umbrella-employment companies equivalent to production companies.
Under the Agency's definition, self-employed artists and entertainers must invoice performance fees with 25% VAT.
To invoice without VAT, all of the following conditions must be met:
- You are a performing artist, dancer or actor.
- You personally perform on stage before a physical audience.
- You perform a literary or artistic work protected by copyright law.
- You own or are the majority owner of, and exercise controlling influence over, the company issuing the invoice.
What does this mean for your client?
Companies: Most companies are liable for VAT, so it does not affect them because they can deduct input VAT and recover the VAT from the Swedish Tax Agency.
Private individuals or associations not liable for VAT: the price is 25% higher. You should therefore quote prices to private individuals and associations including VAT, as is standard when dealing with consumers.
For more information, follow these links:
Swedish Tax Agency rules on VAT exemptions
Swedish Tax Agency legal guidance