Sweden Clarifies VAT Rules for Online Marketplaces

The Swedish Tax Authority has clarified how VAT rules apply to companies operating electronic interfaces that facilitate the sale of goods to consumers. In its notice, the Tax Agency included several specific situations and answered a couple of key questions. 

Furthermore, the notice explains the meaning of delivery of goods within the EU, and how transport should be attributed in cases where distance sales of goods are imported from outside the EU and pass through several sales stages, indicating which sale is regarded as the one linked to the transport.

Scope of Electronic Interface Rules

Under the Swedish VAT Law, if a taxable person facilitates goods in its own name or on behalf of another, it is regarded as the seller. Consequently, the taxable persons who facilitate the sales of goods are liable for VAT. In cases when they facilitate the sale of goods in the name of and on behalf of another, it may still be considered the seller in certain situations. 

These situations refer to enabling distance sales of goods imported from outside the EU with a value of no more than EUR 150, or facilitating sales of goods within the EU from a non-EU established supplier to consumers. Furthermore, these rules apply only if the goods are already located or released for free circulation within the EU at the time the consumer’s payment is accepted.

Finally, in cases of distance sales involving goods imported from outside the EU into Sweden, VAT should be accounted for through the import scheme, ensuring taxation occurs in the country of destination without the consumer paying VAT upon import. 

Regarding low-value goods sold through multiple stages, there is no rule on which sale the transport should be attributed to. However, the Swedish Tax Authority considers that transport should be linked to the final sales stage, meaning that earlier transactions in the chain are treated as sales without transportation.

Conclusion

The explanations and clarifications in this notice supersede those in the previous notice from October 2021 and have been revised to align with new laws that took effect as of July 2023. All taxable persons engaged in the transactions covered by the notice should carefully examine to what extent these rules apply to their business models, and act accordingly to reach compliance.

Source: Swedish Tax Agency