VAT Rates in Sweden: Restaurant Visits

The Facts

• Swedish VAT can be charged at two different VAT rates on a restaurant bill:
  - 12% for food and non-alcoholic beverages
  - 25% for beverages with an alcohol content above 3.5%

• There is a VAT deduction CAP of 300 SEK net receipt, which equates to 46 SEK VAT (i.e., total invoice value 346 SEK).

• If the meal is for FOOD ONLY, i.e., only the 12% rate is charged, VAT can be claimed in full (up to the cap).

• If there is a mix of FOOD and ALCOHOL, you calculate from the total the relative portion by value of food and alcohol. Then, on the capped values per person, you multiply the relative portion to both VAT elements and attain the deductible VAT.

Case Study Example

Here is an example of a restaurant bill with both food and alcoholic beverages:

Three people went to dinner and spent 1,758, net value 1,500 (i.e., capped at 900 or 60% of total).

Of the net total, 900 is food and 600 is alcohol.

The relative portion is therefore 60% food and 40% alcohol.

VAT value food is 900 * 12% = 108

VAT value alcohol is 600 * 25% = 150

So, 60% of both values is deductible (108 * 60% = 64.80) + (150 * 60% = 90) = 154.80.

Alternatively, as the food was over 300 per person, the company could have opted to claim the minimum, i.e., 46 * 3 = 138.

This kind of VAT complexity is difficult to automate, but common to have to deal with in most companies in Sweden.

Do you think your expense management system could do that? Here at Ryan, we have a team of VAT experts that is well-versed in managing the challenges associated with VAT/tax automation. Our recent integration with SAP Concur streamlines the VAT reclaim process for businesses, allowing your business expenses data to automatically import from Concur Expense into Ryan’s tax compliance software seamlessly and securely.