VAT refund in Sweden: A complete guide to tax-free shopping in Sweden for tourists

Are you travelling to Sweden soon? A trip to Sweden is a perfect destination for travellers looking to experience Scandinavia. From the frozen Swedish Lappland up north, where you can observe the northern lights and the midnight sun, to the picturesque harbour and charming museums in Stockholm, there's so much to do in Sweden!

However, the high prices here in Sweden might scare budget travellers away. On top of that, you will have to pay a VAT of up to 25%! That is a lot of money you have to spend extra. But don’t be intimidated by the cost! Even though the VAT in Sweden is quite high, you might be eligible to claim a portion of the VAT refund as a Brit coming here to travel.

If Sweden is the next destination on your travel bucket list, read this article now so that you can confidently get the most out of your VAT refund in Sweden!

And if you are looking for another way to save even more, consider receiving your VAT refund through a Wise debit card!

How much is VAT in Sweden?

Sweden is a member of the EU, so the country must follow specific floor tax rules on goods and services. However, Sweden can still decide on its own rate. Most of the time, you will see the general VAT rate of 25 percent, which applies to many goods and services you purchase. But there are also two other VAT rates in Sweden. You will only need to pay 12 or 6 percent for certain goods and services. If you need to quickly check the VAT rate for specific goods and services, refer to the following table¹:

Tier	Rate	Applicable goods
Standard rate	25%	Most of the goods and services.
The first reduced VAT rate	12%	Foodstuffs; Restaurant and hotels services; and Works of art sold by the artist.
The second reduced VAT rate	6%	Certain cultural sectors; Newspapers and books; Transport services; and Concerts.
The Zero-rate	0%	Healthcare, dental care, social care; School activities; Banking and insurance services; and Other activities.

How much VAT is refunded in Sweden?

Figuring out the exact refunded VAT in Sweden can be quite tricky. But, in general you won't receive the whole amount back. Here's why:

If you use the intermediary refund agent to get your VAT refund in Sweden, administration fees will be taken directly from your refund amount. These fees can vary based on the agent you choose and the total amount you spent. If you opt to receive your refund through a British credit card, there are also foreign exchange fees to consider.

Typically, you can expect to receive a refund of up to 19% of the total price of the item.

Who is eligible for tax free shopping in Sweden?

If you want to get a VAT refund in Sweden, you must meet these conditions²:

• You are a resident of a non-EU country, including the UK, and you have your valid identity documents from a non-EU country; or
• You are an EU or Swedish citizen, but you have been living in a non-EU country (including the UK) for more than one year;
• You will take the unused products with you in your personal luggage within three months after the end of the month in which you made the purchase. For example, if you buy a phone on 15 February, you must apply for a refund and bring this phone out of the EU no later than 31 May, and
• The total value on the invoice is at least 200 SEK. An eligible purchase must be made in a single store on the same day.

There are additional restrictions to consider even if you meet all of the above requirements. Due to their nature, some specific goods are not reimbursable. You cannot claim a VAT refund in Sweden for:

• Alcohol and tobacco;
• Boats;
• Transportation; and
• Services performed in Sweden.

How to get VAT refund in Sweden?

After collecting your document to apply for a VAT refund, there are still a few simple steps you will need to do before receiving your VAT refund in Sweden:

Receive a tax exemption form

The process of getting your VAT refund starts right at the store where you shop here in Sweden! First thing to remember, don't forget to ask for a Tax-Free Cheque at the cashier! Without this form, you cannot claim back anything for our VAT refund in Sweden.

Fill out the form and double-check if all information is correct. Some stores can also offer you to do the digital version of this form. You just need to scan your barcode at the check-out desk, and your information will automatically be filled out on the form.

The retailer may sometimes also request to see an officially recognized identity document, so remember to bring one when you go shopping.

It is worth noting, though, that not every store is in the tax-free shopping scheme! So, it's always good to look for the tax-free sign or confirm with the cashier to avoid any surprises.

Have the forms stamped

If you travel back to the UK directly from Sweden, don’t forget to validate your tax-free form before leaving the country. When you arrive at the airport, look for the nearest Customs Office. You will be requested to show the tax-free form, passport, ticket, and goods during your VAT refund validation, so make sure to place them where you can easily take them. If everything is good to go, the Customs will help you stamp the form.

Obtain a VAT refund

So, you have your tax-free form stamped. It’s time to receive your Sweden’s VAT refund for tourists! Head to the chosen intermediary refund agent, who will proceed with your VAT refund in Sweden. Depending on which agent you use, you can also select different payment methods, such as cash, credit card, or e-wallet.

Now you have this handy guide that can navigate you through the entire VAT refund process. The whole process is quite simple, whether you choose the paper form or the digital one. Sweden is certainly more expensive than the UK in many areas. That's why it's essential to manage your budget carefully so you don't deplete all of your savings. If you want to get the most SEK from every GBP, it's always a brilliant idea to use Wise!

As mentioned above, you can receive your VAT with your credit card, but you might need to pay extra foreign exchange fees. This is because when your card's main currency (e.g., GBP) differs from the local currency (e.g., SEK), it will be automatically converted every time you use it. The card issuer determines the conversion rate, typically with a hidden and cost markup.

With a Wise debit card, you can easily minimise this fee! The card lets you hold 40+ currencies, including SEK! And, it only charges a small fee and converts at mid-market rates without any markups if a conversion occurs. Order your Wise card for a one-time fee of 7 GBP today and enjoy the cheaper way to Sweden. Njuta av din resa här! (Enjoy your trip here!)

Get your card now

Please also be aware that tax rates and regulations may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance.

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Sources used for this article:

1. Skatteverket: VAT rates on goods and services

Sources last checked on 29-Jul-2024.