VAT rates in sweden

The Swedish Tax Agency: VAT rates on goods and services

VAT is included, so for:

125 SEK purchase price it's 100 SEK excluding VAT and 100 * 1,25 is 125, or if you count from the other way it's 125 / 1,25 or 0,2 * 125.

If you had paid 25% of the amount then the tax would be 33 ⅓%.

The invoice will have the sum excluding VAT and it will say 25% (for a computer case) and the amount in SEK.

@Sveklockarn: Businesses do pay VAT, it's just that most businesses can offset the VAT from what they buy and sell.

You are technically correct, the best kind of correct.

Skatteverket will be fairly annoyed with your business if you do not pay VAT and account for it correctly, in a very practical sense.

As pointed out, the standard rate is 25 %, but that becomes 20 % if you divide the VAT by the total price. You'll get the price without VAT if you divide the total price by 1,25 instead. Do note that prices shall be given including VAT to consumers, ie it's not like the US where the sales tax (which conceptually is different) surfaces later. Sometimes you can choose online, since businesses are more interested in the price without VAT. They do pay VAT, but what they actually pay is usually the difference between what others have paid them and what they've paid others, the added value. Then there are complications to this like "omvänd moms" but that seems like outside the scope of the question...

There are also the lower rates of 6 and 12 %, where for example books are 6 and food is 12 %, but most goods are at 25 % which will include all computer parts.

There are some things that are not subject to VAT though, for example most insurance premiums. But in general you're correct, of course.

Both numbers are correct at the same time The VAT on most goods and services are 25%. That means that of the total sticker price you see 20% is VAT.

100:- without VAT + 25% VAT = 125:-

125:- inc. VAT , 20% of that 125:- (i.e. 25:-) is VAT.

The cause of confusion here might be that all sticker prices in Sweden include the VAT-amount. Depending on where you're from you might be accustomed to the VAT being added at the register, on top of the listed sales price. No need to worry about that here, all prices listed for consumers always include VAT.