WEBVTT Kind: subtitles; Language: en

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This is how VAT works

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When you sell something you have to
add VAT on the price.

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When you buy something, the person selling
it has also added VA

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VAT is a type of tax on goods
and services.

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As an entrepreneur you have to account
for VAT on behalf of the Swedish Tax Agenc

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Sole traders account for VAT
in their bookkeeping.

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VAT has to be accounted for via a VAT
return to the Swedish Tax Agency.

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The difference between the VAT on what
you've sold and what you've bought

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determines whether you pay VAT
or have it repaid.

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If you have received more VAT
than you have paid–

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once you have bought someting, you will
pay VAT to the Swedish Tax Agency

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If you have paid more VAT
than you have received

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you will get the VAT refunded.

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VAT must always be shown on
the transaction receipt

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or invoice in SEK and as a percentage.

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To know which information to report
to the Swedish Tax Agency,

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you must in your bookkeeping
keep track of your sales.

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- VAT on sales, "output VAT",
and VAT on purchases, "input VAT".

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You report these figures
in your VAT return.

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For example, a web designer has sold
four web pages for a total of 40,000 SEK,

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excluding VAT.

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The output VAT
is 25 percent, 10,000 SEK.

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Say you have bought a computer program,

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fonts and images
from an image bank for 4,000 SEK,

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excluding VAT.

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The input VAT
is 25 percent, 1,000 SEK.

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When the company's VAT is to be
reported to The Swedish Tax Agency

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the figures for sales,
output and input VAT

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are taken from the bookkeeping
for the VAT return.

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The difference between the output

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and input VAT is 9,000 SEK,

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which is to be paid to
The Swedish Tax Agency.

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To repeat:

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VAT arises whenever you sell
or buy something. You account for VAT

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in your bookkeeping.
VAT is reported to the Swedish Tax Agency.

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Either you pay or have VAT refunded.

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VAT returns are to be submitted
periodically.

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At The Swedish Tax Agency, you register

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whether you want to account for VAT
monthly, quarterly or annually.

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VAT returns can be submitted
via The Swedish Tax Agency's e–service

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Remember that VAT is to be paid

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at the same time
as you submit your VAT return.

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The VAT rate for most goods and services
is 25 percent. But there are exceptions.

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VAT is 12 percent on sales
of food in shops and on meals

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served in restaurants.

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For example, the VAT on books is
6 percent

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newspapers, taxis, and certain cultural
and sport events.

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Health and dental care
is zero–rated for VAT.

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It may be useful to plan for VAT
accounting in your company from the start.

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Verksamt.se - Government services for businesses