New turnover threshold for VAT registration in 2025

On 1 January 2025, the turnover threshold for exemption from VAT was raised from SEK 80 000 to SEK 120 000 per year. This change means more small business owners and hobby businesses can avoid dealing with VAT registration, which simplifies their administration.

What does VAT exemption mean?

VAT exemption means that businesses with a turnover below the set threshold do not need to register for VAT, file VAT returns or account for VAT to the Swedish Tax Agency (Skatteverket). This is a benefit intended to make things easier for small businesses and hobby businesses with limited turnover.

The previous threshold was SEK 80 000, but since 2025 it has been SEK 120 000. This means more businesses can be covered by the VAT exemption.

Who is affected by the new threshold?

The turnover threshold can benefit:

Newly started businesses that have not yet reached higher revenues.

Small side businesses that sell for less than SEK 120 000 per year.

Small business owners who want to reduce the administrative burden of VAT accounting.

However, it is important to remember that the exemption only applies if turnover does not exceed SEK 120 000 this year, nor in either of the two previous years. If your turnover passes the threshold during the year, you must charge VAT from the sale that takes you over the threshold.

What should you keep in mind?

Plan your business: If your turnover is approaching the new threshold, it is important to keep track of your revenue to avoid surprises.

Apply for exemption if needed: If you are below the threshold, the exemption applies automatically. If your business is already registered for VAT, however, you need to apply to be exempted.

Follow up on your revenue: Do you have several businesses that are liable for VAT? Then you must add up the total turnover to determine whether you go over SEK 120 000.

How do you apply for VAT exemption?

The exemption applies automatically if the conditions are met. If you are already registered for VAT but fall below the threshold, you can apply to be exempted via verksamt.se or using the Tax Agency's form.

You can read more about this on the Tax Agency's website.

Take control of your finances

Do you want to make sure your business follows the rules while saving time? At Ekonomico we offer a free consultation to help you with everything from VAT exemption to bookkeeping and accounting.

Fill in the form below and we will get back to you within 24 hours on weekdays.