VAT on artist assignments
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Does 0 % VAT apply to artist assignments through Paidin?
No, not normally when you invoice through Paidin as an umbrella employee.
The VAT exemption for artistic performances under the Swedish Tax Agency's rules applies to the performing artist's own performance. When an umbrella employment company is the contracting party and invoice issuer towards the client, this is normally not the same as the artist selling the performance directly to the organiser. The default position is therefore that the invoice should carry 25 % VAT.
But artistic performances can be VAT exempt, right?
Yes, in certain cases.
The Swedish Tax Agency states that a performing artist's rendering of a literary or artistic work may be exempt from VAT. However, this applies to the artist's own performance and not automatically in subsequent sales stages. When an intermediary or production company sells the assignment, the same exemption normally does not apply.
Why does Paidin add 25 % VAT to artist fees?
Because Paidin, in the umbrella employment model, is the invoice issuer and sells the service to the client.
This means the assignment, from a VAT perspective, is not treated as the artist's direct sale to the organiser, but as a supply through an intermediary. This assessment is governed by the Swedish Tax Agency's regulations.
Does this also apply to gigs, live performances and fees?
Yes, as a general rule when the assignment is invoiced through Paidin.
This typically applies to gigs, live performances, artist fees and similar assignments where Paidin invoices the client. If there are special circumstances in a particular assignment, a separate assessment may be needed, but the default position in the umbrella employment model is 25 % VAT.
Can I invoice without VAT through Paidin if I am an artist?
Only if the assignment is actually covered by a valid VAT exemption under the Swedish Tax Agency's rules and Paidin, after review, determines that the invoice should be sent without VAT.
For artist assignments within umbrella employment, the default is not 0 % VAT. You should therefore not expect VAT-free invoicing for fees or performances through Paidin unless Paidin has explicitly approved it in the individual case.
What happens if the client says artist assignments should be VAT free?
Paidin still needs to make its own VAT assessment.
The client's view does not determine the VAT treatment. What matters is how the supply should be classified under the VAT rules and who actually sells the service. If Paidin is the seller on the invoice, the default position is 25 % VAT for artist assignments.
Does the same apply to DJs, MCs and entertainers?
Not always exactly the same legal assessment, but in practice you should as an umbrella employee assume that assignments invoiced through Paidin are normally subject to VAT.
The Swedish Tax Agency's exemption is tied to the performing artist's performance. Not all assignments within events, entertainment or stage performances automatically fall within that scope, and when they are invoiced through an intermediary, the general rule in practice remains VAT liability.
Do other umbrella employment companies do the same?
Yes. Other companies that help umbrella employees apply the same general rule. This is because the Swedish Tax Agency's regulations govern the assessment, not the individual companies. All umbrella employment companies that act as invoice issuers end up in the same VAT situation.
Summary
Artist assignments invoiced through Paidin normally carry 25 % VAT. In the umbrella employment model, the assignment is invoiced through Paidin as an intermediary and is therefore normally not covered by the VAT exemption for a performing artist's own performance.