Mervärdesskattelagen

Mervärdesskattelagen, often abbreviated as ML, is the Swedish law governing value-added tax, or VAT. This legislation outlines the principles, rules, and procedures for charging, collecting, and remitting VAT within Sweden. It defines what constitutes a taxable transaction, the applicable VAT rates, and who is responsible for paying the tax.

The law specifies that VAT is a consumption tax levied on the value added at each stage of production and distribution. Businesses registered for VAT are generally required to charge VAT on their goods and services. They can, however, deduct the VAT they have paid on their own business expenses. The net difference between the VAT collected from customers and the VAT paid to suppliers is then remitted to the Swedish Tax Agency (Skatteverket).

Mervärdesskattelagen also details exemptions and special rules, such as those for certain financial services, healthcare, and education. It establishes thresholds for mandatory VAT registration and outlines the administrative obligations for businesses, including invoicing requirements and filing VAT returns. The law is periodically updated to align with European Union directives on VAT, ensuring a degree of harmonization across member states. Its primary aim is to ensure fair taxation of consumption and to provide a revenue stream for the Swedish state.