Income tax returns and VAT

Once a year, you must file a tax return with the Swedish Tax Agency (Skatteverket) stating your income and expenses.

Use e-identification: For example, with a mobile bank ID, you can easily file your tax return using the Swedish Tax Agency’s e-service ‘Inkomstdeklaration 1’ or in the agency’s app.
The last day to file your tax return is in early May. The tax declaration service usually opens in mid-March. You can file your VAT return slightly later if you have a turnover of less than SEK 1 million.

Inkomstdeklaration 1, INK1

The main form in the income tax return is called INK1. You can use it if you are a private individual, sole trader or partner in a limited liability company or partnership. In the form, you report:

• Income such as wages, sickness benefits and pensions
• Deductions for items related to your earned income, such as commuting between your home and workplace
• Capital income, such as interest, stock market gains and profits on the sale of a house
• Deductions in the capital income category, such as interest on loans and stock losses.

NE appendix

If you have a sole trader company, you declare business income in an appendix to INK1 called the NE appendix (Income from business activities – sole trader).

In the NE appendix, you state the income from the business and deduct the expenses. You also make tax adjustments such as for interest allocation, tax allocation reserve and expansion reserve.

A person who conducts artistic activities may, under certain conditions, deduct losses in the artistic activities against your income from employment. You can also choose to offset the loss against a future year’s profit in the sole trader company.

Value-added tax

If you are a business owner and conduct activities that are subject to value-added tax (VAT), you must charge VAT to your customers or clients. You add VAT to your sales of goods and services (called output VAT) and deduct VAT from your purchases (called input VAT).

Regardless of whether you run your business as a sole trader or in another form of company, in many cases you need to charge VAT to customers and clients. The VAT must be reported to the Swedish Tax Agency. You either have to pay or get the VAT money back if you paid more in VAT than you received. Smaller companies usually report VAT once a quarter or once a year. The easiest way to submit your VAT return is to use the e-service on the Swedish Tax Agency’s website.

VAT in the field of arts and culture

The VAT rate for cultural activities is anything from no VAT to 6, 12 or 25 percent, depending on what you sell.