Reverse charge VAT for construction

Can I send invoices with reverse charge VAT via Paidin?

Yes. When you create your invoice, select "0% (reverse charge construction)" under the VAT heading.

What does reverse charge VAT mean?

It means the buyer, not the seller, is responsible for reporting and paying the VAT to the Swedish Tax Agency.

When should I use reverse charge VAT?

You should use reverse charge VAT if:

• You are selling specified construction services in Sweden.
• Your customer is a company that also sells construction services (or resells your services).

If you are selling to private individuals, you should add VAT as usual.

Does it also apply to materials?

Yes. If materials are included in the construction service, the entire assignment is treated as a construction service and is covered by the rules.

For pure product sales (e.g. stoves or refrigerators), reverse charge VAT does not apply.

What if I am unsure?

Always ask your customer whether they are covered by the rules. Many construction companies invoice both with and without VAT depending on the situation.

Where can I read more?

See the Swedish Tax Agency's information on reverse charge VAT for construction for full rules and examples.