Sweden increases the interest rates on late or deferred tax payments
Sweden increases interest rates on late or deferred tax payments from 1 November 2022
Starting November 2022, if you pay VAT late in Sweden, the applicable penalties will raise.
Raise of interest rates in Sweden
Sweden increased the base interest rate from 1.25% to 2.5%. Also, the earning interest increased from zero to 1.125%. The official notice can be found here.
The base rate has an impact on the low and high-interest rates that apply to a company’s late tax payments in different scenarios. In summary, as of November 1, 2022, the following interest rates apply:
- Earning rate: 1.125%, instead of zero.
- Low-interest rate: 2.5%, instead of 1.25%.
- High-interest rate: 17.5%, instead of 16.25%.
The low-interest rate is the same as the base interest amount, 2.5%. This rate may apply to tax payments deferred in agreement with the Tax Agency. Also applies when the final tax amount reported is lower than it should be. Finally, it may apply when the final VAT position is modified by the Swedish Tax Agency or a court decision.
The high interest is the base interest plus 15 percentage points, i.e. 17.5%. High interest is applied on amounts owed and not paid in time, for example, when the tax payment is not made within the due date, or when a payment requirement is issued by the authorities. The high-interest rate is calculated and accumulated until the deficit is paid or until the day the amount is handed over to the Crown Enforcement Officer.
Finally, the earning interest is the income interest applicable on the amounts held in the tax account. This income interest is introduced after many years at zero percent, since 2017.
Sweden increased the base interest rate from 1.25% to 2.5%. Also, the earning interest increased from zero to 1.125%. The official notice can be found here.
The different types of applicable interest rates are explained here.
How can Marosa help you?
Marosa can help you to meet your VAT compliance obligations in Sweden and avoid missing any VAT payments. We can prepare and submit your VAT, OSS, ESPL, and Intrastat returns in Sweden, inform you about any additional compliance obligations, and help you understand the notifications received from the tax authorities as well as the VAT treatment of your activities in the country.