Accounting for car dealers

The margin scheme (vinstmarginalbeskattning, VMB) for used cars

Under the margin scheme you only pay VAT on your profit margin, which is the difference between the selling price and the purchase price. The margin is treated as including VAT, so with 25 per cent VAT the VAT comes to 20 per cent of the margin. The margin scheme may be used when the car was supplied to you within the EU by someone who was not entitled to deduct VAT on their purchase, for example a private individual or another dealer who sold the car under the margin scheme themselves. If the seller charged VAT on the invoice, you cannot use the margin scheme. It is optional: you may choose the standard VAT rules instead.

Invoice wording and deductions

• The invoice must include the statement "vinstmarginalbeskattning för begagnade varor" (margin scheme for second-hand goods)
• Neither the VAT amount nor the basis for the VAT may be shown on the invoice
• The buyer has no right to deduct VAT on a car bought under the margin scheme
• A loss on one car may not be offset against the profit on another
• If you sell both under the margin scheme and with standard VAT, the margin scheme sales must be kept separate in the bookkeeping

Cars bought from other EU countries

If you buy a car from a dealer in another EU country who sells under the margin scheme, you can usually sell the car on under the margin scheme yourself. If you instead buy from a VAT-registered business selling under the standard rules, the seller does not charge VAT. You then account for Swedish VAT on the purchase yourself, in boxes 20 and 30 of the VAT return, and deduct it in box 48 if the car was bought for the VAT-liable business. A car bought this way cannot be sold on under the margin scheme. Special rules apply to new means of transport.

The Swedish Transport Agency (Transportstyrelsen): trade plate licence and imports

Anyone who trades in vehicles professionally can apply for a trade plate licence (saluvagnslicens). It gives the right to drive unregistered and deregistered vehicles, but only on journeys directly connected with the business. If you import a lot of vehicles, you can become a registered professional importer and register new vehicles without an origin check. Used vehicles must always be approved at an origin check.

Stock valuation

The cars in stock are included in the year-end accounts. Under the main rule, stock is valued at the lower of cost and net realisable value. Under the flat-rate rule (schablonregeln), stock may be valued at 97 per cent of cost. We go through the stock with you ahead of the year-end closing and choose the rule that suits you.

Fixed price for car dealers

If you also run a workshop or car valeting, the staff register (personalliggare) rules may apply, see our page on car care and car servicing. You pay a fixed monthly price based on the number of vouchers and employees, with no lock-in period and three months' notice. See prices.