Should it be 25 percent, 12 percent, 6 percent – or tax-free? It's important to find out what applies.
When selling certain goods and services, you should not charge 25% VAT, but rather 12% or 6%. In some cases, no VAT should be charged at all. Here are some different examples of industries and businesses with different VAT rates.
Sports and exercise
VAT is normally 6 percent on:
- Sports practiced within the Swedish Sports Confederation's member federations
- strength training, jazz dance, aerobics, workout and martial arts
- Trotting and racing activities affiliated with the Swedish Trotting Association or the Swedish Gallop Association
- services closely related to sport, such as access to equipment and the hiring of swimming costumes, towels, skates and rackets.
- Transport and ski lifts
- admissions fee to sports event
- Entry fees for sporting events.
Camping
In camping, VAT is normally 12 percent. Camping activities include, for example, the rental of caravan or tent pitches and basic cabins.
Real estate
Selling or letting out a property is normally exempt from VAT.
If you are a business owner renting out a commercial property to another business owner who has a VAT-liable business, you can in certain cases voluntarily register for VAT and choose to charge VAT on the rental.
Restaurant and catering
The tax on restaurant and catering services is 12 per cent.
Restaurant and catering services mean selling food or drink in one's own premises or in someone else's premises along with other services, such as table setting, serving, and dishwashing.
Hotels and guesthouses
The tax rate is normally 12 per cent on room rentals in hotel, guesthouse and hostel operations or similar.
However, conference arrangements with included services are not considered room rental. Therefore, the VAT on conferences is 25 per cent. At the same time, the VAT on accommodation and hotel breakfast for conference participants is 12 per cent.
Source The Swedish Tax Agency
Björn Dickson
This article is published in partnership with Resultat
