Reverse charge VAT for construction

Yes, you can invoice with reverse charge VAT via Paidin: select "0% (reverse charge construction)" under the VAT heading when creating the invoice. Reverse charge means the buyer, not the seller, reports and pays the VAT to the Swedish Tax Agency, and applies when you sell construction services to companies that themselves sell construction services. When selling to private individuals you add VAT as usual.

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. The rule exists to counter VAT fraud in the construction sector and is mandatory when the conditions are met; it is not something you or your customer choose.

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.