Construction sector, VAT reverse charge

Usually, it is the seller of services or goods who must charge VAT and pay it to the government. With reverse charge VAT, it is the buyer who must report and pay the VAT to the government. The Swedish Tax Agency has created rules for reverse charge VAT to prevent tax evasion.

Reverse charge VAT rules must apply when selling goods and services covered by the rules. Examples of goods affected by the rules include waste and scrap metal, but also mobile phones, integrated circuit devices, game consoles, tablets, and laptops where the total taxable amount exceeds SEK 100 000. Construction services are an example of services affected by the rules. Construction services are an example of services affected by the rules.

What Applies?

Here is a brief description of what applies for reverse charge VAT. For the latest information on reverse charge, see skatteverket.se.

Within Sweden

Within Sweden, reverse charge VAT is primarily used in the construction sector when both the seller and buyer are VAT registered.

The rules also apply to companies not usually in the construction sector but carry out work on behalf of another company that falls under the reverse charge VAT regulations. Sales of waste and scrap of certain metals.

The buyer’s organisation number and the text "Reverse charge VAT" must be stated on the invoice.

Within the EU

Reverse charge within the EU applies to the transport of goods between two countries, provided the buyer has a VAT registration number in their own country. It also applies to the sale of a service to a trader in another country, as the service is considered to be supplied and taxed in the country where the buyer is established.

The buyers' VAT number and "Reverse charge VAT" must be stated on the invoice.

Outside the EU

If a person in Sweden buys goods or services, they must declare and pay VAT as usual.

What sellers should consider

• Determine whether reverse charge VAT applies.
• The buyer must be registered for VAT.
• The buyer’s VAT number must be stated on the invoice.
• "Reverse charge VAT" must be stated on the invoice when you invoice without VAT according to the reverse charge VAT rules.

• Report the sale in one of the following fields on the VAT report:
  Field 35: Sale of goods to another EU country
  Field 39: Sale of services to a taxable person in another EU country according to the main rule
  Field 41: Sale where the buyer is liable for tax in Sweden

• When selling goods within the EU and invoicing without VAT, according to reverse charge VAT, you must also report the sale in a EU periodic VAT declaration to Skatteverket. Read more in the topic EU periodic VAT declaration.
• Under the reverse charge VAT, you as the seller can deduct input VAT according to general provisions, even though you do not report any output VAT.

Read more in the topic Create invoice with VAT reverse charge.

What buyers should consider

• As the buyer or recipient of the invoice, you are responsible for ensuring the invoice is correct and contains the necessary information. The invoice must include both your VAT registration number and information that reverse charge VAT applies. If this information is missing, and the invoice does not include VAT, you need to contact your supplier and request a new invoice.
• Since you are invoiced without VAT, you must report both output and input VAT yourself. To ensure correct reporting, you must add VAT on your own lines when registering the invoice in Visma eEkonomi Smart. The VAT must be added according to Swedish VAT rates.

Read more in the topic Register purchase invoice with VAT reverse charge.

Related topics

	Settings for reverse charge VAT, domestic customers
	Create invoice with VAT reverse charge
	Register purchase invoice with VAT reverse charge
	Add customer
	Company settings

Search words: vat reverse