Amazon Sweden: what are the tax implications?October 5, 2020 in Amazon, European VAT, International VAT, News, VAT and Fulfilment, VAT rates
Amazon has announced the launch of Amazon.se, the latest Amazon store in a country where consumers are keen online shoppers with a high purchase power.
The expansion to a new market means further business opportunities for sellers, but also additional obligations to be aware of before you start trading. What does the expansion for Sweden mean for you as a seller? Will you need to charge Swedish VAT to sell on the new marketplace?
This blog explores what you should know about the VAT implications of using Amazon.se.
After a few years of rumors, it has now been confirmed Amazon will be expanding to Sweden, the first Nordic country to join the PAN-EU scheme. As mentioned in a webinar hosted by Amazon on September 10th, there is no exact launch date yet as the marketplace is finalising the last technical aspects of the launch. However, sellers are encouraged to prepare already on seller central.
Amazon.se: Joining the new marketplace
As a seller, you should already be able to add Amazon.se as a marketplace on seller central even though no exact launch date has been announced yet.
Amazon has confirmed that a fulfilment centre will open in Sweden, for Swedish selling partners to fulfil their PAN-EU orders. Based on the information released by Amazon so far, the Swedish fulfilment centre will only be available for Swedish selling partners for now, whilst other sellers will have their orders to Sweden fulfilled from Germany.
Will you need a Swedish VAT number to use the SE marketplace? Not necessarily. If you are storing goods in Sweden, then you would need to obtain a VAT number from the moment you first warehouse goods within the country.
Additionally, you would need to get a VAT registration in Sweden as soon as you breach the local distance selling threshold. The threshold is set at SEK320,000 – approximately EUR34,000- and is calculated on your cross-border B2C turnover in Sweden in a calendar year.
Swedish Chemical Tax
If you are planning to be selling electronic products on the Swedish marketplace, your supplies might be subject to the Swedish Chemical Tax.
This tax has been effective since 2017 for SE sellers and will be extended to all ecommerce sellers from 1 October 2020 to ensure that Swedish traders aren’t disadvantaged compared to overseas sellers.
The Swedish Chemical Tax is subject to a threshold, which is currently set at SEK100,000 (approximately EUR9,450) per year. As soon as you breach this turnover threshold, you would need to register for the Chemical Tax and file a monthly return.
Please note that the Chemical tax threshold is lower than the VAT threshold, this means that some sellers might be eligible to the Chemical Tax prior to submitting VAT returns.
The tax is calculated on the weight of the goods, without packaging. Since 1 January 2020, the Chemical tax has been levied at SEK 11 per kilogram for white goods, and SEK163 per kilogram for other electronic goods. The maximum tax amounted per item is SEK 448 and deductions exist depending on the chemical content of the item. Tax payment is due within 5 days of moving the goods into Sweden, or on a monthly basis if you are registered as an ‘EU-trader’ (Registrerad EU-handlare).
The expansion to a new market can be as exciting as well as tricky if you don’t know the tax rules within the country. As a country with a thriving online economy, but country-specific tax rules, Sweden is no exception. To succeed on Amazon.se, make sure to monitor both the VAT and Chemical tax thresholds to avoid any unpleasant surprises from the Swedish tax authorities.
If you have any questions about Amazon.se or would like to know more about the VAT implications of selling online, contact us today!