Sweden raises VAT registration threshold

Sweden is increasing the VAT registration threshold. As of 1 July 2022, businesses with a turnover exceeding SEK 80 000 are obliged to register for VAT. The threshold is being increased from 30 000 SEK.

What the VAT threshold means for your business

Businesses need to pay close attention to the VAT threshold in every country in which they operate. The reason is quite simple: when turnover exceeds the VAT threshold, you are obliged to register for VAT.

Once VAT-registered, you are obliged to charge VAT and submit regular VAT returns. 

Companies with global operations should note that the threshold for each country is different. Even within the EU, different states have different VAT thresholds. 

What are my VAT obligations if I do not exceed the threshold?

There may be additional reasons why a business is obliged to register for VAT. For example, under EU distance selling rules, you have to register for VAT in any EU state in which your e-commerce sales exceed a special distance selling threshold. (Fortunately, the new One Stop Shop (OSS) makes e-commerce VAT compliance in Europe much simpler.)

In addition, many countries around the world now have rules governing VAT digital services provided by foreign businesses. Any business that provides electronic services - such as streaming, gaming or cloud computing - to customers abroad should pay careful attention to their potential VAT obligations. 

A complex challenge with a simple solution

Global VAT compliance is complex. There are different VAT thresholds and regulations in each country. Plus, tax offices around the world have developed new VAT rules to meet the demands of the digital economy. 

You need a global VAT expert in your corner. As the world's VAT compliance and recovery specialists, VAT IT ensures you are always 100% VAT compliant while maximising reclaim opportunities. It’s a smarter way to manage your VAT.