For many businesses running a company (AB) in Sweden, the process of getting tax returns from the Swedish Tax Agency (Skatteverket) is a frequent source of confusion. At 1Office Sweden, we’ve worked with companies that, despite best efforts, face challenges when dealing with local tax matters and tax deductions.
Common tax deductions
One way businesses can reduce their overall tax burden is by taking advantage of common tax deductions that are available to Swedish ABs. Many businesses miss out on valuable deductions simply because they aren’t aware of them or fail to provide the correct documentation. Maximising these deductions can significantly improve your company’s financial position.
For instance, costs such as office supplies, rent for business premises, marketing expenses, and even employee benefits like healthcare or work-related training can often be deducted from taxable income. Another area where deductions are often overlooked is professional services, such as legal or accounting fees, which are also eligible in many cases.
Unfamiliarity can cost your business money
Understanding Swedish tax requirements is not always straightforward, particularly for companies unfamiliar with the local system and it can cost your business money either through a fine or incomplete tax refunds. Below, we highlight two common examples and explain how professional guidance can save time and money.
Example 1: Filing with No Revenue
Company A, an Estonian-based e-commerce firm operating a Swedish AB, believed that because they had no sales in Sweden for the first year, there was no need to file a tax return. This misunderstanding led to a penalty notice months later. Filing tax returns is mandatory for all ABs, regardless of turnover. Without local expertise, this simple mistake resulted in unnecessary costs.
Example 2: VAT Refund Delays
Company B, a tech startup based in Stockholm, regularly incurred VAT on purchases but struggled to reclaim it from Skatteverket. Their internal accountant, unfamiliar with Sweden’s specific VAT refund process, repeatedly submitted incomplete applications. This caused delays, forcing the company to absorb cash flow issues that could have been avoided with the right knowledge.
Expertise matters
These examples highlight how critical it is to have expert advice when operating a Swedish AB. 1Office Sweden specialises in providing tailored consultation for companies in precisely these situations. Whether you need assistance with filing returns or dealing with VAT reclaims, our team ensures compliance with local regulations, preventing fines and delays.
If your business is facing similar challenges, consulting a firm with in-depth local experience can save both time, money and your energy.
