Sweden Updates Invoicing Guidelines for Clarity and Compliance

The Swedish Tax Agency has recently issued a clarification about the invoicing guidelines, in order to provide a clearer understanding of what constitutes a complete invoice. The update on invoicing guidelines does not modify the substance of the requirements, but it provides more details about the information requirements consisting of adding the quantity and nature of the goods delivered or the scope and nature of the services provided.

The Tax Agency emphasizes that to correctly comply with this information requirement the supplier must take into account the purpose to achieve it, i.e., the description should be sufficiently detailed so the tax authority can determine the applicable VAT rules for the transaction. In consequence, it is not necessary to provide a detailed or exhaustive description of the goods or services, however, the information on the invoice should allow the tax administration to determine the applicable VAT rate on that supply, for example.  

The new guidelines include the following remarks:

• Indication of the nature of the goods or services: it is acceptable to include the commercial description or name of the goods, or in case of services, the nature of the services provided. Also, the use of codes or making reference to agreements is allowed but under certain conditions. On the contrary, it is not allowed to include generic statements, for example, a description that covers a wide range of services, like Consultancy.
• Quantity and scope of the supply of goods and services: it is required to include the number of goods delivered, normally specified at the lowest possible item level, e.g. "144 shampoo bottles". When it comes to services,  the supplier shall indicate how much of each service the seller has provided.

These clarifications and adjustments in the guidelines aim to promote transparency and accuracy in invoicing practices, benefiting both businesses and tax authorities. Find here the clarification published by the Swedish tax administration.