Proposal consisting of reduced VAT rate on electronic publications due to amended VAT directive provisions!

In the Council of Ministers’ recommendation from the Ministry of Finance on 21 February 2019, it is proposed that the VAT rate for electronic publications should be reduced from 25 percent to 6 percent. This means that the tax rate will be reduced on products that are provided electronically and that correspond to physical books, newspapers and magazines and other similar products that are currently taxed with 6 percent. Products that are wholly or mainly devoted to advertising or wholly or mainly consisting of moving images or audible music should not be covered by the reduced rate.

The proposal causes changes in the Swedish VAT Act and the proposal is proposed to enter into force on 1 July 2019.