The Swedish Tax Agency has made a proposal for the introduction of VAT registration threshold of SEK 30,000 for resident companies.
Sweden currently does not have a VAT registration threshold, which means that businesses have to register from the moment they make a supply in Sweden.
It should be noted that this threshold would only apply to businesses established in Sweden. Non-established businesses would not enjoy the threshold and hence be liable to register in Sweden from the first supply being made that is subject to Swedish VAT. It should also be noted that these thresholds are different from those that apply to businesses making distance sales. Businesses making these supplies still have no requirement to register for Swedish VAT until the existing SEK 320,000 distance sales threshold is exceeded.
If the proposal is implemented, we understand that businesses will not be able to register voluntarily for VAT. Also, companies already registered for VAT will be able to de-register if they have had a sales turnover of less that SEK 30,000 in the previous 2 years’.
The proposal is intended to come into effect on 1 January 2017.