How does VAT on sales to other countries work?
The use of VAT on sales to other countries depends on the country of the buyer or where the goods are shipped:
- Consumers within the EU VAT area: Same rules as when selling to consumers within Sweden.
- Businesses and consumers outside of the EU VAT area: No VAT.
- VAT-registered businesses within the EU VAT area: Reverse charge VAT if the buyer provides its VAT number to the seller. Then the seller doesn’t add VAT on the invoice, and the buyer declare the VAT in its country instead. If the buying company is not registered for VAT then the same VAT rules as within Sweden applies. Always ask the buyer for its VAT number in case it’s a business.
If you are conducting sales with reverse charge VAT to other EU countries you need to submit a periodic summary to the tax authorities latest by the 25th after a closed month or quarter. Monthly if you sell goods and quarterly if you sell services. This deadline is much earlier than the deadline to file VAT, so it is important that you organize the invoicing administration for reverse charge VAT well. We recommend to, if possible, do your invoicing in the same application or cloud service as your accounting, to have all the data quickly available in the same location.