For VAT, the key point to remember is that the service performed determines the VAT rate, not the recipient of the service.
- Every service has specific rules governing the applicable VAT rate. As a general rule, the rate is usually 25% for goods and services.
It is important to understand that VAT rarely represents a cost for Swedish companies because they can deduct input VAT from output VAT.
Invoices to organisations such as non-profit associations, private individuals, religious communities and artist companies should always include VAT. Their exemption from VAT liability means that VAT is a direct cost to them.
Find the rules that apply to your service HERE.