Background & Purpose

To follow updated EU regulations on value-added tax (VAT), Sweden needed to update its national tax laws to modernize rules for small businesses and cross-border trade.

Proposals & Debate

The government proposed raising the sales threshold for VAT exemption to 120,000 SEK, allowing Swedish small businesses to use similar thresholds across the EU, simplifying invoicing rules, updating taxation for virtual events, and setting a flat 12 percent VAT rate on most art sales.

The Decision

The Swedish parliament approved the government's proposal, meaning the new tax rules will be implemented as planned.

Does this affect you?

  • Small business owners: Higher sales threshold of 120,000 SEK before needing to register and charge VAT.
  • Artists and art sellers: Standardized 12 percent VAT rate applied to most art sales.
  • Digital event organizers: New requirements to tax virtual events and activities based in Sweden when sold to local buyers.

In Practice

  • Small businesses with a yearly turnover up to 120,000 SEK are exempt from charging VAT.
  • Swedish small businesses can use similar tax exemption limits when operating in other EU countries.
  • More companies gain the right to issue simplified invoices.
  • Virtual events and digital activities sold to buyers in Sweden will be taxed locally.
  • A standard 12 percent VAT rate applies to the sale of works of art, with specific exceptions for profit-margin taxation.