VAT for freelancers: complete guide 2026

As a freelancer invoicing through Paidin, you need to understand the basics of how VAT works. The good news is that Paidin handles all VAT reporting for you, but it is helpful to know the rules so you can invoice correctly from the start. In this guide we cover VAT rates, international invoicing, VAT-exempt services and the most common questions.

What is VAT?

VAT (mervärdesskatt, commonly called "moms" in Swedish) is a tax added to most goods and services in Sweden. It is always the end customer who pays the VAT, but the seller who reports and pays it to the Swedish Tax Agency (Skatteverket). As an umbrella employee at Paidin, you add VAT to your invoice and Paidin then takes responsibility for declaring and paying the VAT to Skatteverket on time. You never need to file a VAT return yourself.

VAT works through each link in a sales chain adding VAT and reporting the difference to Skatteverket. For you as a freelancer, this means in practice that you specify the correct VAT rate on the invoice. Paidin ensures the amount is handled correctly.

VAT rates in Sweden

Sweden has four VAT levels. Which percentage applies depends on the type of service or goods you invoice.

25% (standard VAT) The vast majority of services and goods are taxed at 25%. If you work as a consultant, photographer, designer, programmer, musician at a private event or perform other common assignments, 25% VAT applies. When you create an invoice through Paidin, 25% is the default since it is the most common rate.

12% (reduced VAT) This rate applies to restaurant and catering services, hotel and camping operations. If you invoice for catering services, for example, 12% may be the correct VAT rate.

6% (low VAT) The 6% rate applies to food products in stores (temporary rate until 31 December 2027), books, newspapers, admission tickets to cultural events such as concerts and theatre performances, and passenger transport. If you invoice as an author for a book publication, for example, 6% may be the correct level. Note that a performing artist selling their own live performance is normally VAT-exempt (see the section on VAT-exempt services below), while it is the organiser selling admission tickets who applies 6%. Contact Paidin if you are unsure whether your service qualifies for the lower rate.

0% (VAT-exempt) Certain services are fully exempt from VAT. This applies to healthcare, education and financial services, for example. Invoicing to companies in other EU countries and to customers outside the EU may also result in 0% VAT, but for different reasons (see the sections below).

How does Paidin handle VAT?

When you invoice through Paidin, you never need to think about VAT returns, bookkeeping or payments to Skatteverket. Paidin takes full responsibility for all VAT handling. Here is how the process works in practice.

You create an invoice in Paidin's system and specify what the assignment involves. VAT is calculated automatically based on the rate you select. The invoice is sent to your client including VAT. When the client pays, Paidin records the payment, reports the VAT in its VAT return to Skatteverket, and pays your salary after deductions for tax, contributions and Paidin's service fee.

You receive a pay slip for each payment showing exactly how the invoice amount has been distributed. VAT does not appear on the pay slip since it is never your income; it belongs to Skatteverket and is handled entirely by Paidin.

A common advantage of invoicing through Paidin compared to running your own company is that you avoid the administrative burden of VAT returns and payments, which for sole traders may need to be filed monthly, quarterly or annually. Paidin collects all VAT from all invoices and declares and pays it collectively on a quarterly basis.

VAT when invoicing internationally

If you perform assignments for clients in other countries, special VAT rules apply. Paidin handles these situations as well, but it is important that you enter the correct information about the client so the invoice is correct.

Within the EU: reverse charge

When you invoice a service to a company (B2B) within the EU, reverse charge applies. This means no Swedish VAT is added to the invoice. Instead, the foreign buyer is responsible for reporting VAT in their own country. Paidin automatically adds the correct reverse charge text to the invoice and handles the reporting.

For reverse charge to apply, your client must have a valid VAT number in another EU country. Always enter the client's VAT number when creating the invoice in Paidin's system. Paidin validates the number and ensures the invoice meets all formal requirements.

Note that the rule only applies to business customers. If you invoice a private individual in another EU country, Swedish VAT normally applies, just as with a domestic invoice.

Outside the EU: no VAT for B2B

Services invoiced to business customers outside the EU, such as in the USA, Norway or Australia, are not subject to Swedish VAT. The invoice is issued without VAT. For private individuals outside the EU, Swedish VAT normally applies, with exceptions for certain service types such as consulting services, digital services and advertising. Paidin marks the invoice correctly and ensures the accounting is accurate.

Here too, it is important that you provide complete information about the client, including country and any organisation number, when creating the invoice through Paidin.

VAT-exempt services

Certain services are exempt from VAT under Swedish law, regardless of whether the client is in Sweden or abroad. This means no VAT should be added to the invoice. The most common exemptions are:

Healthcare and dental care. Licensed healthcare professionals invoicing medical services through Paidin do so without VAT. The exemption only applies to services that constitute actual healthcare as defined by Skatteverket.

Education. Teaching conducted within the public education system, or education that by its nature corresponds to such teaching, is VAT-exempt. Courses and workshops aimed at other professional development may however be subject to VAT, so the boundary can sometimes be difficult to determine. Paidin helps you assess which category your assignment belongs to.

Banking and insurance services. Financial services and insurance mediation are exempt from VAT.

Property rental. Rental of real estate is normally VAT-exempt, with exceptions for short-term rental of premises and parking spaces.

If you are unsure whether your service is VAT-exempt, contact Paidin before creating the invoice. It is better to ask in advance than to correct an incorrect invoice afterwards.

ROT and RUT: VAT with tax deductions

If you perform ROT or RUT work through Paidin, special rules apply. The customer only pays their portion of the invoice after the tax deduction, but VAT is calculated on the full invoice amount before the deduction. Paidin handles the calculation, the application for payment from Skatteverket and the VAT reporting. You only need to indicate that the assignment involves ROT or RUT when creating the invoice.

Frequently asked questions

Do I need to file VAT returns myself? No. Paidin is responsible for all VAT declarations to Skatteverket. You do not file any separate VAT return, either monthly or quarterly. VAT is handled entirely within Paidin's accounting.

Can I deduct VAT on my expenses? As an umbrella employee at Paidin, you cannot make VAT deductions in the same way as a sole trader. However, you can add expenses to your invoice. Paidin then handles the expense's VAT deduction in its accounting. Always save receipts for expenses and upload them in Paidin's system.

What happens if I select the wrong VAT rate? If you accidentally choose the wrong VAT rate, Paidin can help you correct the invoice before it is sent, or credit and send a new invoice if it has already been sent. Contact Paidin as soon as you discover the error.

My client wants an invoice without VAT, even though they are in Sweden. Is that possible? No, if the service is subject to VAT and the client is a Swedish recipient, VAT must be added to the invoice. There is no legal way to exempt the VAT in these cases. Paidin cannot issue invoices that violate VAT legislation.