Sweden has announced amendments to the VAT Act, effective January 1, 2025, to streamline the system and provide clearer guidelines. Key updates include new VAT exemptions for small businesses with low annual turnover, revised definitions for taxable activities, and a 12% VAT rate for certain art and antique transactions. The amendments also outline conditions for input tax deductions and detailed administrative procedures for appeals and exemptions.
VAT Act amendments announced in Sweden
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Sweden
Author: Nikolina Basić
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Fiscal subject related
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Content accuracy validation date:
25.11.2024
Content accuracy validation time:
11:15h
The Swedish Official Gazette has published Law No. SFS 2024:942, detailing significant amendments to the Value-Added Tax (VAT) Act. These changes are set to take effect on January 1, 2025. It refers to:
- Updated definitions: the law clarifies the definitions of taxable persons, taxable transactions, and economic activities within the VAT framework.
- Small business exemptions: new VAT exemptions have been introduced for small businesses with annual turnovers not exceeding 120,000 Swedish kronor (approximately US$11,279) domestically or 100,000 kronor (approximately US$9,398) within the European Union.
- Exempted transactions: the amendments provide VAT exemptions for intra-Union deliveries, export services, and transactions involving investment gold and periodical publications.
- Adjusted tax rates: a 12 percent VAT rate will be applied to the delivery and intra-Union acquisition of certain works of art, collectors’ items, and antiques.
- Input tax deduction conditions: the law specifies conditions under which input tax can be deducted, particularly for profit margin transactions.
- Administrative procedures: detailed guidelines have been established for administrative processes, including identification decisions, revoking exemptions, handling appeals, and issuing VAT-free invoices for exempt transactions.
These amendments aim to streamline the VAT system and provide clearer guidelines for businesses and tax authorities alike.
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