VAT explanations

Hello,

I need help to understand how works VAT in Sweden.

I plan to create my own small service business.
I will be a sort of internet coffee.

So, I will have to invest a big amount of money in devices and peripherals (computers, screens, mouse, head set etc.)

In my country, I know that I can buy these product without paying VAT because it is necessary to run the business but I don't know at all how it works in Sweden.

Any one can explain ? Or maybe give me and idea where i could find the information ?

Thank you for your help

It's the same in Sweden, you don't need to pay VAT on investments into your company.
You may have to pay the VAT on the purchase itself, but it will be deducted from your tax in the end of the fiscal year.

Thank you for the answer.

So if I understand well:

Every investment I do are paid with VAT but will be refund at the end of the year?
Is it obviously at the end of the year or may be handle monthly for example?

Period depends on which kind of legal entity you register.

There is also rules for how long youbare allowed to carry startup losses. And the tax authorities do scrutinize way more the they did in times past.

Also, forgot to ask if that include ALL the investment related to my business? Or only certain type of investment?
I was thinking for example to the architecture or the carpentry of the office?

As logg as it is business expenses as you as a private person CAN NOT have any personal use or gain from the base rule is that anything goes.

When you buy services directly from other companies in Sweden or EU, the VAT is usually excluded from the cost from the very start. As mentioned above though, you can deduct the VAT for any investment into your company.

I’d strongly advise you to set up appointments with a few accountants that could take care of these things for you. You are going to want to have someone on speed dial as well. I would never start a business abroad w/o the expertise required. Probably a corporate lawyer as well as an accountant. The latter would suffice for you. Best of luck with your venture!

Yes I will this is not just the good moment right now.
I just wanted to analyse first by my own and then work with an expert in the financing field