Sweden VAT Reduction on Repair

Governmental Agency: Ministry of Finance
Jurisdiction: Sweden
Ref no: Fi2022/02895
Status: ADOPTED

In 2016, Sweden introduced a law that reduced Value Added Tax on repair services from 25% to 12% for a number of items, including clothing, footwear and household linen. This was to promote the use of repair services (as opposed to throwing away the damaged product and buying a new item). In 2022, this was further reduced to 6%. However, this was subsequently reversed back to 12% in 2023.

• Which Businesses Will Be Impacted?

  Businesses operating repair services are most likely to see the impact of these VAT reductions if consumers engage more with these services.

Further Information | Legislation site