Accounting of VAT during the corona crisis

As a result of the current corona crisis, the Swedish Tax Agency (STA) has taken a position to clarify what applies to accounting for VAT and what can be done to facilitate for companies conducting taxable activities in Sweden.

Change of accounting method for output- and input VAT

Taxable persons who reports VAT according to the invoice method, i.e. reports VAT with the invoice date / date of issue as the starting point for the accounting, can through application to the STA change to the year-end method (cash method) if the total annual sales in Sweden is estimated to a maximum of SEK 3 million. This means that companies can report the VAT when receiving the payment from the buyer instead and thus do not have to pay the VAT debt before receiving the payment from the customer. The same applies regarding the input VAT, which, even in such a case, should be reported when input invoices are paid to the suppliers.

In the event of a change during the current financial year, it is important that the taxpayer ensures that output- and input VAT is not double-accounted or unreported.

Change of accounting period

The STA is now eliminating the time requirements that normally apply when notifying the change of accounting period for VAT. Changing the accounting period for VAT means that a taxable person who reports VAT on a quarterly basis can change to a accounting period of one taxable year if the taxable basis is estimated to decrease to a maximum of SEK 1 million or that the person who reports VAT on a monthly basis can change to a quarterly reporting period if the taxable basis will reduce and amount to a maximum of SEK 40 million for the tax year.

In connection with a change to the accounting period of one taxable year, it is important to remember that the change must not lead to the taxpayer having overlapping accounting periods.

Our comment:

The opportunities that the STA gives the taxpayers can make a big difference in liquidity in these difficult times, and we therefore recommend that you as a company contact us at Skeppsbron Skatt to review your possibilities for changing the accounting method and / or accounting period for VAT.

Please contact us if you have any questions.

Beatrice Carlsten, Thomas Borg, Manuela Vulic.