Input value-added tax (VAT), or ingående moms in Swedish, is the VAT a Swedish business pays when it buys goods or services for its operations. This tax is a key part of how VAT reporting works for any registered business. Every purchase invoice that includes VAT generates input VAT on the buyer’s side. It’s then set against the output VAT the business charges on its own sales when it files with Skatteverket, the Swedish Tax Agency. The difference between the two taxes determines whether a business pays VAT or gets a refund. Input VAT therefore becomes a running calculation that shapes cash flow throughout the year.

Below, we’ll cover how input VAT differs from output VAT, how to calculate it from a VAT-inclusive price, and which purchases carry full deduction rights versus limited or no deduction.

Key takeaways

• Input VAT is the VAT paid on business purchases, which gets deducted against output VAT charged on sales when filing with Skatteverket.

• Deduction rights depend on how a purchase is used, with specific limits for passenger cars, representation costs, and exempt activities.

• When input VAT exceeds output VAT for a filing period, the business receives the difference back through its tax account rather than owing Skatteverket.

What is input VAT (vad är ingående moms)?

Input VAT is the VAT a Swedish business pays on purchases made to run its operations. When an invoice or receipt has VAT included, input VAT applies. Whether for equipment, services, or stock, it’s recorded in the accounting period the invoice falls in rather than when payment happens.

What is the difference between input VAT and output VAT?

Output VAT (utgående moms) is the VAT a business charges customers when it sells something, while input VAT is the VAT it pays when it buys something. The two sit on opposite sides of the same transaction chain. What counts as output VAT for a supplier becomes input VAT for the business buying from them. Businesses subtract input VAT from output VAT when filing, and pay Skatteverket the difference.

For example, a furniture maker buying wood pays input VAT on that purchase, then charges output VAT when selling the finished table. The same 25% rate can show up as input VAT on one part of the books and output VAT on another, depending on the direction.

How do you calculate input VAT?

Calculating input VAT starts with the VAT-inclusive price on a purchase invoice. The divisor changes depending on which of Sweden’s three VAT rates applies. Swedish accounting software often runs this automatically once a purchase is logged.

Here’s how it’s calculated at each rate:

• 25%: Divide the VAT-inclusive price by 1.25 to get the net price, then subtract that from the total to find the VAT amount.

• 12%: Use the same formula, except divide the VAT-inclusive price by 1.12.

• 6%: Divide the VAT-inclusive price by 1.06 and, as before, subtract that from the total to calculate the right VAT amount.

The formula is relatively simple, but reverse charge scenarios can be more complicated. When a Swedish business buys a service from a VAT-registered supplier in another EU country, the invoice usually arrives with no VAT charged.

Here’s why:

• Self-assessment: The Swedish buyer calculates the VAT itself and applies the Swedish rate to the net purchase price rather than relying on the supplier’s invoice.

• Double entry: The calculated amount gets reported as both output VAT and input VAT on the same return.

• The net effect: The two entries cancel out when the business has full deduction rights, though the calculation still has to land correctly on both sides.

Treating a VAT-free invoice as VAT-free rather than needing self-assessment is a common error in cross-border purchasing. Stripe Tax calculates VAT on sales automatically based on the customer’s location and what’s being sold, and it produces reports that make VAT easier to track over a filing period.

What deduction rights apply to input VAT?

A Swedish business can deduct input VAT on purchases connected to VAT-taxable business activity. If a business sells goods or services subject to VAT, the VAT it pays on inputs tied to that activity is normally deductible in full.

Here’s what to know about deductions:

• Passenger cars: VAT on buying a passenger car usually isn’t deductible unless the car is used exclusively for the business, such as a taxi, rental car, or driving school vehicle.

• Leased cars: Leasing a passenger car allows a 50% deduction, provided the car is driven about 1,000 kilometres per year for business.

• Representation and entertainment: VAT on client meals, gifts, and similar costs is deductible only up to specific amount limits set by Skatteverket, which is 300 SEK (excluding VAT) per person.

• Mixed-use purchases: When something serves both taxable and VAT-exempt activities, or both business and private use, the business can deduct only the portion tied to the VAT-eligible, business-related share, based on a reasonable allocation such as turnover or usage.

• Exempt activities: Businesses generally can’t deduct input VAT on purchases used to provide VAT-exempt goods or services, such as certain financial or insurance activities.

Sole proprietors face the same rules, although how VAT works for sole proprietorships in Sweden comes with its own reporting quirks and is worth checking separately.

What happens when input VAT is higher than output VAT?

When a business’s input VAT exceeds its output VAT for a filing period, the result is negative VAT. Instead of paying Skatteverket, the business gets the difference back through their tax account once the return is processed, usually within a few weeks of filing.

Here are a few scenarios where this might occur:

• Large purchases: A business making a big equipment purchase or renovating its premises can rack up input VAT well beyond its sales for that period.

• Exporters: Sales to customers outside the EU are typically zero-rated, so the business charges no output VAT on those sales but still pays input VAT on everything bought to produce and ship the goods.

• New businesses: Startup costs often outpace revenue in the early months, which pushes input VAT above output VAT.

Businesses that regularly run negative VAT, such as exporters, can apply to file monthly regardless of turnover, which means money is returned to them more often than in a quarterly or annual cycle.

What are the risks of getting input VAT wrong?

Overclaiming input VAT is an easy mistake to make. It often happens in the grey areas around deduction limits, mixed-use or exempt-activity purchases, or with a missed reverse charge. Penalties can include repayment of any excess deduction plus interest on the amount owed. Underreporting adds a tax penalty on top of unpaid VAT, and repeated errors can result in closer scrutiny on future returns.

If you keep input VAT calculations tied to specific invoices, apply deduction limits consistently, and reconcile purchase VAT against the correct filing period before submitting a VAT return, you can reduce most of these risks.

Businesses that manage VAT on both sides of the ledger will find that having output VAT clearly separated and reported makes it easier to spot the kind of mismatch that leads to a correction later.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful API.

Stripe Tax helps you monitor your obligations and alerts you when you exceed a tax registration threshold based on your Stripe transactions. It can also register to collect tax on your behalf in the US, automate US filings in the Dashboard, and manage global filings through trusted partners. Stripe Tax automatically calculates and collects sales tax, VAT, and GST on:

• Digital goods and services in all US states and over 100 countries

• Physical goods in all US states and 42 countries

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration, or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: If you need to register for sales tax in the US, let Stripe manage your tax registrations. You’ll benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations. If you need help registering outside of the US, Stripe partners with Taxually to help you register with local tax authorities.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax automates US filings in the Dashboard, powered by TaxJar. For global filings, Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business. US tax filings can be automated in the Stripe Dashboard, powered by TaxJar.

Learn more about Stripe Tax, or get started today.