|Update:||Compliance Alert - Plans to increase the turnover limit for VAT registration|
The Swedish government wants to raise the turnover limit for VAT exemption from the current level of SEK 30,000 (EUR 3,000) to SEK 80,000 (EUR 8,000) per year in order to help small businesses reduce administrative costs.
Furthermore, repairs such as bicycle repairs, shoes, leather goods, clothing and household linen are proposed to be included in the VAT reduced rate of 6% instead of 12%. The proposal aims to get more people to repair and modify goods already manufactured instead of buying new ones.
Both proposals will be announced in the Budget for 2022 and are suggested to enter into force on 1 July 2022.