Exemption regulations that apply to sales of services within the EU
Certain types of services are exempt from the general rules. If your service is not included among the exempt services listed below, then one of the general rules applies to it.
Selling services to other EU countries
If a service is sold and subject to VAT in Sweden, you must charge Swedish VAT on the sale and report it in your VAT return. However, you must not do this if the service is sold and subject to VAT in another country. You might need to register for VAT in the country in question, then charge and report VAT there.
Here’s how to report your sales of services under the exemption regulations
Sales that are exempt from both general rules
The following services are always exempt from the general rules whether you sell them to taxable persons (such as businesses) or non-taxable persons (such as private individuals). In other words, these exemptions apply regardless of who purchases the services.
Real-estate services
Sales of real-estate services are considered to have been made in the country in which the property in question is located.
Examples of real-estate services include:
- construction and building work
- property repairs and maintenance
- cleaning of premises and property management
- leasing of premises
- rental of rooms in hotel operations
- real-estate brokerage.
Passenger transport services
If you carry out passenger transport services within Sweden, they are sold and subject to VAT here. Passenger transport services between Sweden and other countries are sold and subject to VAT outside Sweden. The same rules apply if you carry out these services in another country.
These also apply, for example, to luggage services associated with passenger transport, and to ferry transport of a buses carrying passengers.
Different regulations apply to travel services that are subject to margin taxation.
Admission to events (such as concerts, sporting events and trade fairs)
Admission to an event (entry fee) is always sold and subject to VAT in the country in which the event takes place. This applies to the following types of events:
- cultural
- artistic
- sporting
- scientific
- educational
- entertainment-related
- events similar to those listed above.
Examples include:
- theatre and circus performances, amusement parks, concerts, exhibitions and other similar cultural events
- sports events such as matches and competitions
- educational and scientific events such as conferences and seminars
- trade fairs and exhibitions.
Restaurant and catering services
The sale of a restaurant or catering service is considered to have been made in the country in which the service is physically carried out.
If such services are sold on board a ship or aircraft in international traffic, they are subject to VAT outside Sweden. Special rules apply to restaurant operations on board trains.
For a service to be regarded as a restaurant or catering service, it must include not only the provision of food and/or drink, but also various services directly connected to the sale. These may include table setting, serving or the right to use specific premises and equipment, such as tables and chairs.
Services such as sales of takeaway foods in restaurants and delivery of food and drink to buyers do not count as catering services.
Example
Emma’s company is organising a corporate event in Malmö. Emma hires a Danish catering company to deliver the food and tableware for the event. Since this company carries out the catering service in Sweden, the service is considered to have been sold here, which means that it is subject to VAT here. The Danish catering company must therefore register for VAT in Sweden and charge Swedish VAT when issuing its invoice to Emma.
Short-term hire of means of transport (such as cars and bicycles)
The transport hire service is sold and subject to VAT in the country in which you make the means of transport in question available to the customer. If you hire out a means of transport for a maximum of 30 days (or 90 days for a vessel), this constitutes short-term hire.
Means of transport include the following, for example:
- cars, motorcycles, bicycles, three-wheeled vehicles and caravans
- trailers and semi-trailers
- tractors and other agricultural vehicles
- self-propelled mobile cranes
- vessels.
If the transport hire period exceeds 30 days (or 90 days for a vessel), this constitutes long-term hire. Special rules apply to long-term hire to non-taxable persons. Find out more under “Long-term hire of means of transport (such as cars)”.
Exceptions to the general rules: sales of services to non-taxable persons
The following exceptions only apply when you sell services to non-taxable persons (we will refer to them as “private individuals” from now on).
Brokerage services
Brokerage services are sold and subject to VAT in the country in which brokered goods are delivered or the services are provided. This applies when you are instructed by a private individual to broker goods or services in their name and on their behalf.
Transport of goods within the EU
Goods that you transport within Sweden are sold and subject to VAT here. If goods transport is connected with exports or imports, it is exempt from VAT.
The sale of goods transport between two EU countries is made and subject to VAT in the country in which the transport begins. If you carry out goods transport wholly or partly outside Sweden and in other EU countries, these services are subject to VAT outside Sweden instead.
Cultural services and similar
Services connected with cultural and similar activities are sold and subject to VAT in the country in which they are carried out. This applies to the following types of activities:
- cultural
- artistic
- sporting
- educational
- scientific
- entertainment-related
- activities similar to those listed above
This also applies to services that are necessary for carrying out such activities, and to services provided by the activity organiser. One example is the sale of ski lift passes, since this enables participation in a sporting activity.
Virtual activities sold in the buyer’s country
When you provide a virtual service connected with one of the activities listed above, the service is sold in the country in which the buyer is established or resident, or in which they stay on a permanent basis – if the buyer is a private individual. You might make the activity available to the buyer through streaming or other virtual means. The same rules apply to services that are necessary in order to provide the virtual service.
Transport-related services
Transport-related services are sold and subject to VAT in the country in which they are physically performed. Examples of such services include loading, unloading and handling of goods.
If such services are connected with exports or imports, they are VAT exempt if you carry them out in Sweden.
Work carried out on goods (moveable property)
A service consisting of work on, or valuation of, movable property is sold and subject to VAT in the country in which it is carried out. It does not matter whether the goods are transported from Sweden to another EU country when you have completed the work.
If the goods are dispatched from Sweden to a non-EU country, the service may be exempt from VAT.
Examples of services carried out on moveable property include:
- assembly and installation
- repairs, servicing and maintenance
- processing, finishing and painting
- valuation (including insurance-related services)
- inspection and analysis
- animal grooming.
Digital services
Digital services are sold in the country in which the buyer is established or resident, or in which they stay on a permanent basis (the term “resident” will be used from now on)
In certain circumstances, a service can be considered to have been sold in Sweden even if the buyer is not resident in this country. In such cases, the service is subject to VAT in Sweden.
Digital services are as follows:
- electronic services
- telecommunications
- radio and television broadcasting
It can be difficult for you to know where a buyer is resident. That’s why there are regulations that make this easier to determine. These regulations state the following:
- If the service requires the buyer to be physically present at a particular place, such as an internet café, you must assume that the buyer is resident in that location.
- If the service is sold through a fixed landline, you must assume that the buyer is resident in the location in which the landline is installed.
- If the service is sold through a mobile network, you must assume that the buyer is resident in the country that is identified by the mobile country code of the SIM card that the buyer uses when they take delivery of the services.
- If the service requires a decoder or smart card, you must assume that the buyer is resident in the same location as the decoder or similar equipment. Otherwise, you must assume that the buyer is resident at the place to which the smart card is sent for use.
If none of the above circumstances apply, you must obtain two different types of evidence that show where the buyer lives. Examples of such evidence include the buyer’s billing address, IP address or bank card details.
Digital services are as follows:
- electronic services
- telecommunications
- radio and television broadcasting
It can be difficult for you to know where a buyer is resident. That’s why there are regulations that make this easier to determine. These regulations state the following:
- If the service requires the buyer to be physically present at a particular place, such as an internet café, you must assume that the buyer is resident in that location.
- If the service is sold through a fixed landline, you must assume that the buyer is resident in the location in which the landline is installed.
- If the service is sold through a mobile network, you must assume that the buyer is resident in the country that is identified by the mobile country code of the SIM card that the buyer uses when they take delivery of the services.
- If the service requires a decoder or smart card, you must assume that the buyer is resident in the same location as the decoder or similar equipment. Otherwise, you must assume that the buyer is resident at the place to which the smart card is sent for use.
If none of the above circumstances apply, you must obtain two different types of evidence that show where the buyer lives. Examples of such evidence include the buyer’s billing address, IP address or bank card details.
Digital services are as follows:
- electronic services
- telecommunications
- radio and television broadcasting
It can be difficult for you to know where a buyer is resident. That’s why there are regulations that make this easier to determine. These regulations state the following:
- If the service requires the buyer to be physically present at a particular place, such as an internet café, you must assume that the buyer is resident in that location.
- If the service is sold through a fixed landline, you must assume that the buyer is resident in the location in which the landline is installed.
- If the service is sold through a mobile network, you must assume that the buyer is resident in the country that is identified by the mobile country code of the SIM card that the buyer uses when they take delivery of the services.
- If the service requires a decoder or smart card, you must assume that the buyer is resident in the same location as the decoder or similar equipment. Otherwise, you must assume that the buyer is resident at the place to which the smart card is sent for use.
If none of the above circumstances apply, you must obtain two different types of evidence that show where the buyer lives. Examples of such evidence include the buyer’s billing address, IP address or bank card details.
Long-term hire of means of transport (such as cars)
The transport hire service is sold and subject to VAT in the country in which the buyer is resident or established, or in which they stay on a permanent basis (the term “resident” will be used from now on). You must be able to determine where the buyer of the service is resident, and you need two different pieces of documentary evidence for this. These two pieces of evidence must indicate one of the following:
- the buyer’s billing address
- bank details, such as the bank at which the payment account is held, or the billing address registered with the bank for the buyer
- registration details for the means of transport hired by the customer (if registration is required in the place where the means of transport is used), and other similar details
- Other relevant business-related details
If the rental period is longer than 30 days (or 90 days in the case of a vessel), this constitutes long-term hire.
Means of transport include the following, for example:
- cars, motorcycles, bicycles, three-wheeled vehicles and caravans
- trailers and semi-trailers
- agricultural vehicles
- self-propelled mobile cranes
- vessels
Special rules apply to recreational boats
In the case of long-term hire of a recreational boat, the service is sold and subject to VAT in the country in which the boat is made available to the customer, provided that you:
- make the recreational boat available in Sweden or another EU country
- have your seat in that country or are established there for business purposes
- supply the service from that seat or establishment
If the maximum transport hire period is 30 days or 90 days respectively, this constitutes short-term hire. Other rules apply to short-term hire. You can find out more under “Short-term hire of means of transport (such as cars or bicycles)”.
If you only sell services to non-taxable persons such as private individuals, and these services are supplied and subject to VAT in Sweden, you must refer to the information regarding the general rule if your service type is not listed on this page.
Here’s how to report sales of services under the exemption rules
There are various ways in which you must report your service sales in your VAT return, depending on where the services are subject to VAT, or whether they are exempt from VAT.
Services that are sold and subject to VAT in Sweden
If you sell services that are subject to VAT in Sweden under one of the exception rules, you must charge Swedish VAT on the sale and report it in your VAT return. You enter the sales amount in Swedish kronor in box 05, and the output VAT in box 10, 11 or 12, depending on the VAT rate that applies to the service you have sold.
Services that are sold in Sweden but exempt from VAT here
If you sell services that are exempt from VAT, you must not charge any VAT on them. You must report the sale in Swedish kronor in box 42 of your VAT return.
Services that are sold and subject to VAT outside Sweden
If you sell services that are subject to VAT outside Sweden, you must not charge any Swedish VAT on the sale. You must report the sales in Swedish kronor in box 40 of your VAT return. You do not need to submit an EC sales list (recapitulative statement) for such sales.
If you sell services that are subject to VAT in another country, you might have to register for VAT in the country in question so that you can charge and report VAT there. To find out whether you need to do so, you must contact that country’s tax authority.
Here’s how to report your sales of real-estate services
If you sell a real-estate service to a non-Swedish buyer, and the property is located in Sweden, you must charge Swedish VAT on the sale and report it in your VAT return. You enter the sales amount in Swedish kronor in box 05, and the output VAT in box 10, 11 or 12, depending on the VAT rate that applies to the service you have sold.
If your non-Swedish buyer conducts construction business activities in Sweden, and the property with which your real-estate services were associated is located in Sweden, the regulatory requirements for reverse-charge liability must be fulfilled. The buyer must then register for VAT in Sweden, and report VAT on their purchase in their Swedish VAT return. You must not charge VAT on the sale, but you must still report it in your VAT return. You must report the sale in box 42 of your VAT return.
If you sell real-estate services to a buyer in another EU country, and the property is located in another country, you might have to charge VAT in that country. To find out whether you need to do so, you must contact that country’s tax authority.
You do not need to submit an EC sales list (recapitulative statement) for such sales.
Reporting VAT under the special schemes
If you sell goods and certain services to private individuals situated in another EU country, in some cases, you can report and pay VAT under one of the special schemes. You then report your sales using the Swedish Tax Agency’s One Stop Shop (OSS) e-service.
Apply to report distance sales through One Stop Shop (OSS)
The scope of the special schemes (Legal guidance in Swedish) External link.