VAT rules changes in Swedish 2017 Budget law

Sweden has published the 2017 budget law confirming changes previously announced and publishing new developments to their current VAT rules.

As from January 2017, VAT rules regarding deduction of input tax on expenses such as meals, entertainment or refreshments will only be allowed up to SEK 300 per person and per event. This amount is only €31 at this months’ FX rate, which means companies should review expenses carefully to make sure that their refund application is made for the correct amount. Exceeding this limit may trigger penalties for excessive refunds.

Although VAT rates are harmonized across the European Union, Member States can impose deduction limits to a range of goods and services according to their own internal rules. We include information about these limits in our VAT manuals under section VAT Deduction limits. Please contact us if you need information about any country not included in our VAT manuals section.

In addition to new deduction limits, the Swedish government also confirmed the introduction of a new registration threshold. As we announced last July, Sweden will set the new threshold at SEK 30,000. Only small established companies will be able to benefit from this simplification. Non-established taxable persons would need to register for VAT as soon as the first taxable transaction is made.

Finally, the Swedish government has introduced a new tax on certain chemicals such as products including polymers of vinyl chloride and certain electronic products. Also beer and wine are now subject to increased excise duties.


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