When does a small Swedish business become liable for VAT?
Below SEK 120,000 of turnover per tax year the business is exempt, provided the limit was not passed in either of the two preceding years. If the limit is crossed during the year, VAT applies from the supply that crosses it.
What the rules say
- The VAT Act: exemption for taxable persons with small annual turnover, the limit being SEK 120,000 in the tax year.
- The VAT Act: the exemption requires that the limit was not exceeded in either of the two preceding tax years.
- The Tax Agency: registration can be requested voluntarily and gives the right to deduct input VAT.
The requirements line by line
| Question | Requirement | Source |
|---|---|---|
| Threshold | Domestic supplies are exempt where turnover does not exceed SEK 120,000 in the tax year and did not do so in either of the two preceding years. | SFS 2023:200, mervärdesskattelagen |
| Deadline | When the limit is passed during the year the exemption ends, and VAT applies from the supply that crosses the limit. | SFS 2023:200, mervärdesskattelagen |
| Voluntary registration | A business below the limit may ask to be registered anyway, which gives the right to deduct input VAT. | Skatteverket, moms |
| Exempt activities | Some supplies are exempt regardless of amount, among them healthcare, dental care, social care, education and certain financial services. | SFS 2023:200, mervärdesskattelagen |
Thresholds and limits
| Limit | What it triggers | Source |
|---|---|---|
| SEK 120,000 per tax year | Exemption applies up to the limit, VAT liability above it | SFS 2023:200, mervärdesskattelagen |
| The two preceding tax years | The limit must not have been exceeded in either of them for the exemption to apply | SFS 2023:200, mervärdesskattelagen |
What it means for the company
Track turnover as it happens. Selling to other businesses, registration usually pays from day one: the customer deducts the VAT anyway and you deduct yours.
What it means for the individual
Selling to consumers, the exemption is a real price advantage as long as you stay under the limit.
Source lines
- Svensk författningssamling, RiksdagenSFS 2023:200, mervärdesskattelagen · read 2026-08-25 · proof a651b2aeb886bd05
- SkatteverketSkatteverket, moms · read 2026-08-25 · proof a651b2aeb886bd05
Next step
Add up this year so far and the two preceding years. If any of them is above the limit, the exemption does not apply this year.
This page reports what the sources say, with the identifier and address of the publisher. It is not legal advice and does not decide an individual matter.
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