Selling goods to countries outside the EU—exports
When you sell goods that are transported from Sweden to countries outside the EU, they are known as exports. If you sell goods that are transported to a country outside the EU you should not charge Swedish VAT. This rule applies to sales to both businesses and private individuals.
By countries outside the EU are also meant areas that are outside the EU VAT area, even though they belong to an EU country, for example Åland. If you sell goods to Åland, for instance, it is an export.
You must be able to prove that the goods have been exported
In order for you to report a goods sale as an export, you must be able to prove that the goods have been delivered to a location outside the EU, or that the goods sold are regarded as an export for other reasons. You can prove that goods have been delivered to a location outside the EU by providing customs, dispatch or transport documents, for example.
If you have instructed a transport company to transport the goods, you can prove that the consignment is an export by providing a consignment note and transportation invoice. A consignment is also considered to be an export if the carrier reloads the goods and stores them for a short period – or transports them via another EU country – for convenience of transport.
If you receive payment from a country outside the EU, this is not proof of export.
If it has been determined that goods are to be exported, you must not charge VAT on the sale if the buyer makes an advance payment. You must be able to provide sufficient evidence that the advance payment relates to the goods that will be exported. You should have a purchase order and an order confirmation receipt, for example.
Purchases for collection by a foreign business
It's particularly important for you to be able to provide proof of export for purchases for collection – that is, when you deliver goods to a business in Sweden or another EU country, and that business then dispatches them to a non-EU country.
A purchase for collection is an export if you can prove that the buyer:
- transports the goods out of the EU; and
- is a foreign business that has purchased the goods for its operations outside Sweden
If you’re unsure of the circumstances, as the seller, you can charge Swedish VAT on a purchase for collection and refund the VAT later, when you have received sufficient documentation from the buyer relating to the export.
Here’s how to report export sales
Even if you have exported goods without charging VAT, you must still provide details of the sale in your VAT return. You do this by reporting the value of the goods in Swedish kronor in box 36.
Sales to tourists may be classified as exports retrospectively
If you sell goods to a private individual from another country who is visiting Sweden, you must charge them VAT, just as you would on a sale to a Swedish private individual. If the buyer lives in a non-EU country, you can record the sale as an export retrospectively in certain circumstances, provided that you have agreed with the buyer to refund the VAT refund later. A sale to a private individual living in another EU country cannot be recorded as an export retrospectively.
A sale to a private individual from a non-EU country only becomes exempt from VAT when you, as the seller, can prove that the buyer has brought the goods into a non-EU country. Naturally, the documentary proof required is not normally available to you at the time of sale.
The buyer might also ask you to send the goods to a non-EU country. If you do this, the sale is a standard export, and you must not charge VAT on it – regardless of the price of the goods.
Visitors from countries outside the EU (excluding Norway and the Åland Islands)
If you sell goods to a buyer who takes them in their personal luggage to a country outside the EU (excluding Norway and the Åland Islands), the following conditions must be met for the buyer to receive a VAT refund:
- the price of the goods must be at least SEK 200 including VAT
- the goods must have been taken out of the EU before the end of the third month after the month of purchase
Example
Chris buys a crystal bowl for SEK 500 on 14 January. He must take it out of the EU by 30 April at the latest in order to be entitled to a VAT refund on his purchase.
If a buyer is a Swedish citizen who can prove that they will be resident outside the EU for at least 12 months, they are classified as a visitor from another country. The buyer can prove this by showing a residence permit for the country in question, for example.
Dokumentation
As the seller, you must receive an export permit from an approved permit provider, or an invoice or equivalent document stamped by the EU customs office of departure, confirming that the buyer has taken the goods to a non-EU country. The buyer must therefore show the goods to an approved permit provider or to Swedish Customs when taking them out of the EU. If you do not have access to any export documentation at the time of sale, the goods are not exempt from VAT. You must also be able to prove that the buyer is resident outside the EU by providing a copy of their passport or equivalent ID.
A buyer who has taken the goods out of Sweden with them can receive a VAT refund from you, or from an export permit provider approved by the Swedish Tax Agency. The approved export permit providers in Sweden are Global Blue Sverige AB and Planet Payment Sweden AB. The buyer cannot receive a VAT refund from the Swedish Tax Agency or from Swedish Customs.
Visitors from Norway or the Åland Islands
If you sell goods to a private individual who is resident in Norway or the Åland Islands, the buyer is entitled to a VAT refund provided that the following requirements are fulfilled:
- the price of the goods is at least SEK 1,000 excluding VAT; and
- you can prove that the buyer has brought the goods to Norway or Åland within 14 days of purchase, and has paid VAT on their import
You can also apply the minimum price of SEK 1,000 excluding VAT to a set of goods that normally form a single unit, such as a coffee service or a camera with lens.
Documentation
You must receive a copy of the buyer’s customs invoice or equivalent document to prove that the buyer has taken the goods to Norway or the Åland islands shortly after delivery and has paid VAT on the import.
How to report sales that are classified as exports retrospectively
If a sale is classified as an export retrospectively according to the requirements outlined above, you must report the value of the goods exclusive of VAT in box 36 of your VAT return.
If you have already filed your VAT return and reported output VAT on the sale, you can submit revised details later, for the period in which you reported the sale. In your revised VAT return details, you enter reduced taxable sales and output VAT amounts and report the value of the goods exclusive of VAT in box 36 on your VAT return instead.
Selling goods and services to the UK
Selling goods from Sweden to the United Kingdom are exports, except for selling to Northern Ireland. Northern Ireland is regarded as an EU country in trade in goods with other EU countries.
In trade in services with other EU countries, Northern Ireland is regarded as a country outside the EU.
The UK and Brexit (Legal guidance in Swedish) External link.
Examples of exports
Examples of Swedish businesses selling goods to customers in other countries.
Sale made to a buyer in another EU country, where the goods are delivered from a country outside the EU
Susanne’s company in Sweden sells shoes to Elke’s business in Germany for a total of SEK 100,000. The shoes are transported directly from the manufacturer Marit’s business in Norway to Elke in Germany.
- Since the shoes are sent from Norway to Germany, the consignment is an export.
- Susanne reports SEK 100,000 in box 36 of her VAT return.
- Susanne must not add VAT to her invoice to Elke. She states on the invoice that it relates to an export.
- Elke will probably have to submit a customs declaration and pay import VAT in accordance with German regulations (German Customs can provide further information).
Sale of goods purchased in Sweden by a private individual outside the EU
Maria, who is a car dealer in Sweden, sells a used car for SEK 100,000 to Roger, a private individual in Switzerland. Roger collects the car from Maria in Sweden and drives it to Switzerland. Since Maria supplies the car in Sweden, she must charge VAT on the sale and declare it in her VAT return.
Maria can record the sale as an export retrospectively and refund the VAT to Roger, provided that she has received documentation proving that the car has been taken out of the EU and deregistered from the Swedish vehicle register.
- Maria reports SEK 100,000 in box 36 of her VAT return if she has received documentation proving that the car has been taken out of the EU and deregistered from the Swedish vehicle register.
- Maria states on the invoice that the sale relates to an export.
Sale to a buyer outside the EU, with delivery within the EU
Kevin’s company in Sweden sells bicycles for a total of SEK 100,000 excluding VAT to Terje’s business in Norway. Terje then resells the bicycles to Tomas’s business in Germany. Kevin and Tomas are registered for VAT in their respective countries. The goods are shipped directly from Sweden to Germany.
Kevin’s delivery to Terje is not an export, since the bicycles are not dispatched to a country outside the EU. The goods cannot be sold exclusive of VAT in Sweden if the buyer (Terje) is not registered for VAT in an EU country other than Sweden. Kevin must charge Swedish VAT at 25% on the sale.
- Kevin reports SEK 100,000 in box 05 and SEK 25,000 in box 10 of his VAT return.
- If Terje is registered for VAT in Sweden, he can claim a deduction in his VAT return. If Terje is registered for VAT in another EU country and provides his VAT number at the time of purchase, Kevin’s sale is exempt from VAT.
Sales in other situations classified as exports
The following are also classified as export sales:
Sales in and to duty-free shops
If you supply goods to duty-free shops at Swedish airports, your sales are exempt from VAT. These shops are entitled to sell spirits, wine, beer, tobacco, perfume, cosmetics, chocolate and confectionery on a VAT-exempt basis to passengers travelling to destinations outside the EU VAT area.
Sales to vessels or aircraft in international traffic
If you sell equipment that forms part of, or is used in, a vessel or aircraft, the sale is exempt from VAT. The same applies if you sell goods intended for consumption or sale on board ships, aircraft or military vessels.
Sales of temporarily registered cars and motorcycles
If you sell a temporarily registered car or motorcycle to a private individual who lives, or stays permanently, outside the EU, the sale is exempt from VAT in certain circumstances. You must be able to prove that the vehicle was moved permanently to a location outside the EU before the end of the sixth month after the month of delivery.
If you sell cars and motorbikes that are not registered temporarily, or lorries or buses, the general rules apply when determining whether a sale should be classified as an export sale. As a rule, an export is not regarded as verified until the vehicle in question has been permanently deregistered in Sweden.