VAT Refunds – Sweden
Categories of expenditure that don't allow for VAT refunds
Some categories of expenditure don't allow for VAT refunds; in Sweden these categories are:
- VAT related to the buying of a car or motor bike.
- 50% of VAT incurred on costs for car/motor bike rental or leasing.
- VAT related to permanent dwelling.
- Refunds of VAT are not given to a travel agency for goods and services that have directly benefitted the traveller.
- VAT incurred on costs that have no relevance to the claimant's nature of business.
- VAT indicated on invoices not addressed to the claimant.
- VAT incurred on costs considered being of a personal, private nature.
- VAT incurred on entertainment costs:
- A prerequisite for reimbursement of VAT incurred on entertainment costs is that the costs and the business are directly related to each other. Reimbursement is not granted for private consumption (cost of living/private hospitality). The number of participants, their names and the companies they represent shall be stated in connection with the invoice.
- If wine and other alcoholic beverages are included in the expenses the taxable person may deduct 28 SEK per guest.
- Entertainment for own employees: the applicant may deduct 31 SEK per guest. Alcoholic beverages cannot be included in the expenses.
- Entertainment for guests: the applicant may deduct 46 SEK per guest. Alcoholic beverages cannot be included in the expenses.
For further information, please contact the Swedish Tax Agency.
In Sweden, the authorities can grant refunds to non-EU based businesses even if the authorities in the non-EU country don't offer similar refund arrangements as those for businesses based in Sweden.